Reference no: EM132858079 , Length: word count:1500
Unit 5 Management Accounting - BTEC Level 5 Higher National Diploma in Business
Learning Outcome 1: Demonstrate an understanding of management accounting systems
Learning Outcome 2: Apply a range of management accounting techniques
Learning Outcome 3: Explain the use of planning tools used in management accounting
Learning Outcome 4: Compare ways in which organisations could use management accounting to respond to financial problems
Task 1:
Scenario:
You are a Management Accountant for an enterprise in the manufacturing sector and, in an effort to promote understanding between different departments in the organisation, you have been asked by your managing director 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. The report should cover the following:
• Critically evaluate how management accounting systems and management accounting reporting is integrated within organisational processes. In doing this you need to (a) explain management accounting, essential requirements of management accounting systems and (b) explain different methods used for management accounting reporting.
• You also need to evaluate the benefits of management accounting systems and their application within an organisational context.
Task 2:
You have been appointed as the Management Accountant for Modern Ltd that produces and sells two products, Product X and Product Y.
The following information is available for Dec 2020:
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Product X
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Product Y
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Production (units)
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5,000
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3,500
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Sales (units)
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4,600
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3,200
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Opening inventory (units)
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0
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0
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Financial data:
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Product X
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Product Y
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Unit selling price
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£ 180.00
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£ 150.00
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Unit cost:
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direct materials
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£ 30.00
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£ 24.00
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direct labour
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£ 36.00
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£ 24.00
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variable production overheads
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£ 24.00
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£ 16.00
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fixed production overheads
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£ 60.00
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£ 40.00
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variable selling overheads
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£ 2.00
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£ 2.00
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Fixed production overheads for the period were £210,000 and fixed administration overheads were £54,000.
Calculate costs using appropriate techniques of cost analysis to
(a) Prepare an income statement for March 2018 based on marginal costing Principles.
(b) Prepare an income statement for March 2018 based on absorption costing principles.
(c) Produce financial reports (income statements) that accurately apply and interpret data for complex business activities and provide an accurate interpretation and analysis on the performance for the month of August 2020.
Task 3:
Scenario
As a newly-qualified Management 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.
The management report should cover the following:
- Evaluate how planning tools for accounting respond appropriately to solving financial problems to lead organisations to sustainable success. In order to do this you need to analyse the use of different planning tools and their application for preparing and forecasting budgets and how management accounting can lead organisations to sustainable success.
- Explain the advantages and disadvantages of different types of planning tools used for budgetary control and compare how organisations are adapting management accounting systems to respond to financial problems.
Attachment:- Management Accounting.rar