Explain the use of planning tools used in management accounting.

Unit 5 Management Accounting - Higher National Certificate / Diploma in Business

Management Accounting Systems & Techniques

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.

Assignment Brief

Learners need to have read car fully the instructions before attempting any of the questions.

Scenario:

Small accounting practices (SAPs) operate as small businesses, confro ted with decisions such as management of knowledge, human resource, budgets, cash, client and so on, in the process of providing professional services to their clients who are generally SMEs (Kirby and King, 1997; Gibbins and Wright, 1999; Ciccotosto, et al. 2008). To retain their clients they have to be conscious about their fees, manage disputes quality compliance and non-compliance related services.

Research and provide high shows that owner managers of SMEs expect, apart from routine compliance services, advice on many broad and specific aspects of their business and these include among others, financial planning, management accounting and information system, forensic accounting, cost reduction, succession planning and pricing decisions (Arnold, et al. 1984; Kirby and King, 1997; Marriott and Marriott, 2000; iccotosto, et al. 2008; Nandan and Ciccotosto, 2007; Alam and Nandan, 2007). While accountants have the expertise and skills to provide the majority of above mentioned services, they have not been extensively involved in the provision of such services (Arnold, et al. 1984; Nandan and Ciccotosto, 2007). For example, in this information age many technology but have been reluMEs have embraced computerised information processing tant to obtain these services from external advisors such as accountants (Arnold, et al. 1986; Ciccotosto, et al. 2008). This has serious implications for the accounting profession.