Management Accounting Assignment - Management Accounting Case Study
Scenario - You work as a Management Accountant in a small and medium organization operating in either a Manufacturing, Retail, Hospitality or Construction sector with not more than sixty (60) employees and an annual net turnover not exceeding 600,000.
In today`s competitive and uncertain and dynamic business environment, management accounting plays vital role and therefore decision makers in the organization must understand how to create and use good management accounting information. In today`s fragile business environment, businesses need to track performance information that goes beyond just the cost-based information of historic general ledger systems provided by traditional financial accounting information. Good management accounting involves a responsibility to manage a wide variety of critical management accounting information using management accounting system and management accounting techniques such as cost-volume- profit (break- even) analysis, budgetary control, cash budget, marginal costing and absorption costing to produce relevant management report for informed decision making.
This was the summary of the speech delivered by the chairperson of CIMA at a recent global accounting summit in Central London about the role of management accounting, management accounting system, cash budget, cost-volume analysis in an organisation. The Chief Operations Officer of your organization sees management accounting function as very crucial in providing management information for informed decision making within the organization. Your organization sponsored you to attend this summit.