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Indicate the main purposes of management accounting and its relevance to the management of organisations. Evaluate the main cost structures of organisations and methods of their calculation. Determine appropriate methods of calculating break-even, profitability and capital input costs. ASSIGNMENT BRIEF AVN Plc. has designed and assembled electronic devices since January 2014. Recently you are appointed as the management accountant as the board of directors are concerned that its operational managers may not be fully aware of the importance of understanding the cost incurred by the business and the effect that has on their operations and decision making. In addition the operational managers need to be aware of the implications of their pricing policy when trying to increase the volume of sales. You are required to analyse the above matters and submit a report in which will be used as a discussion paper for future financial planning, decision making and controlling. In the report 1. Discuss the purpose of management accounting and the relative Importance of using management accounting tools over financial accounting, for furthering company’s growth and profit. 2. Explain different classification of costs namely on the basis of type, function, behaviour and relevance and the implications of the cost classification for pricing. 3. Analyse the importance of cost –volume profit, in decision making. 4. Discuss the benefits of preparing budgets for the company and suggest the types of budgets to be prepared, to forecast future performance of the company. 5. The report need be properly formatted and referenced

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