•The submission must be in the specific format(s) as specified in the assignment brief instructions.
•The assignment should be submitted in a MS Word© format, or equivalent.
•The assignment has TWO parts. Please read both parts carefully.
•Ideally, you should complete Part 1 before Week 7 and make sure you get formative feedback from your Assessor during teaching week 6 and 7.
•It is also recommended, you complete Part 2 before Week 14 and get formative feedback from your lecturer during teaching week 14 and 15.
LO1 Demonstrate an understanding of management accounting systems
LO2 Apply a range of management accounting techniques
You are an accountant clerk for a medium-sized enterprise in the manufacturing sector. You can select an organisation of your choice or use your own place of work (if appropriate). In an effort to promote understanding between different departments in the organisation, you and your colleagues have been asked by your line manager to prepare a report on the role and function of the management accounts department, covering the management accounting systems operating in the organisation as well as the range of techniques used.
1. An explanation of the principles of management accounting.
2. The role of management accounting and management accounting systems.
3. The use of techniques and methods used in management accounting by presenting calculations for an income statement using variable costings to show how these financial reporting and statements support business growth and success.
4. Evaluation of how management accounting is integrated within the organisation.
5. The benefits of the function to the organisation.
6. Conclusions that critically reflect the application of management accounting.
The report must include a completed portfolio of income statements that demonstrate calculations using variable costings.
LO3 Explain the use of planning tools used in management accounting.
LO4 Compare ways in which organisations could use management accounting to respond to financial problems
Select an organisation of your choice or use your own place of work (if appropriate). In your role of assistant financial accountant, you have been asked by your line manager to produce a report which analyses the organisation’s use of planning tools to ensure financial stability and performance as well as ways in which management accounting has played a key role in preventing and solving financial problems.
You are to produce a business report that analyses the use of different methods used for management accounting and make recommendations for which of these methods should be applied to achieve sustainable success.
1. Compare and contrast three planning tools used in management accounting, indicating how effective you judge each to be and why. Your judgements should be supported by examples to demonstrate advantages and disadvantages.
2. Using specific case studies as examples, compare ways in which management accounting is applied, the effectiveness of management accounting in dealing with financial problems and preventing financial problems in organisations.
3. Provide conclusions and recommendations to the organisation on which methods to apply in order to achieve sustainable business success, based on your findings and evidence provided.