Question 1
A)
Unlike financial accounting management is more short, while financial accounting
provides a semi-annual and annual reports mainly external stakeholders (shareholders,
competent authorities and the like), management accounting generates monthly, even
weekly reports referred focused internal organs, both executives at the highest levels, and
at medium and executive. Financial Accounting provides both financial and non-financial
information to support the planning, organizing, controlling and decision-making at all
levels of management. Financial accounting shows the financial situation of the company
and missing is an older concept of control accounting. Management accounting is
oriented more towards managers in order to achieve better A financial positions with
greater efficiency at lower cost through better organization.
Management accounting is concerned with the assessment of impacts, identifying and
managing costs.
B)
The objectives of management accounting are:
Measuring performance (measurement of performance and efficiency
measurement, identifying deviations from the standard enables their correction
and achieving your goals)
Risk Assessment (achievement of the targets represents a future event and as such
carries the risk of uncertainty)
The allocation of resources to the (proper allocation of resources work, matter,
information)
Presentation of various reports.
Financial accounting reports investors, shareholders, stakeholders, which on the basis
of the information or not they want to participate in the ownership, investment, tax
collection for example, management accounting identifies, analyzes, records and
presents information to managers doing the planning, management, decision-making
and control.
Question 2
A)
Budget
Actual
Sales
12000
11560
Material
4000
3600
Labour
5600
5400
Fixed overheads
1000
1000
10600
10000
Operating profit
1400
1560
The budget is a plan for the future. He is a planning tool and as such is static. If the
budget is used as a tool controlee effects he then variable (flexible). So flexible budget
not known before the end of example. The manufacturing process, before the end of the
period for which the budget was made. The static budget is planned volume of production
and a flexible budget corrected static on foreign actual level of the production. A time and
checks the creator of budget performance predicted. The less deviation that is better and
more realistic budget is made.
Also flexible budget allows correction, a set budget is not definitive as static, higher
during the period varies depending on the changes in the market. At the surname if the
reduced demand for the product for which it was planned much higher consumption will
lead to change in the planned production volume to a large part of the production would
remain unsold and stocks of materials and labor expended were trapped in unsold
products.
B)
Creative traditional budgeting requires a lot of time. Although well prepared quickly
becomes obsolete and therefore has less used. They are ready frames and require less
labor managers, less possibility of including innovation and change.
