Understanding Management accounting and Financial Management - Essay Example

Comments (0) Cite this document
Summary
Cash Budget for Mowtown Store (given in appendix) Report: The financial standing of the Mowtown Store is fundamentally stable; however there have been observed ups and downs in terms of the closing balance of the company at the end of each month from January to June…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.2% of users find it useful
Understanding Management accounting and Financial Management
Read TextPreview

Extract of sample "Understanding Management accounting and Financial Management"

Download file to see previous pages Understanding Management accounting and Financial Management

Considering the cash budget of Mowtown store, the management should be credited for the limited amount that is being paid as payroll as a wage. On the other hand, they have been getting the efficient services from the employees of the store. Another main factor that needs to be considered by the management is that they should look for the same policy reforms that affected their profit to rise with the highest percentage, i.e. the ending balance of February and May will indicate that. The managers must also look for reducing the costs such as shipping costs and maintenance costs. Budgeting and better management decision making and management control: An effective budgeting system will facilitate the management to make an effective decision making, which lead to the results that are expected by the management in the end of a period. Without a proper budgeting and forecasting system, the management cannot predict or decide what steps must be taken to expand or at least maintain the business, what measures should be taken to reduce the overall costs, and how this framework must be established. An improper budgeting system will lead to a frustrated decision making process which might not be in favor of the management or a particular business.Budgets are prepared by the company operatives at various departmental levels; whereas the ‘master budget’ actually highlights the comprehensive financial plan for a particular period. The main objectives of preparing a budget which can also be termed as the advantages can be explained as follows: The budget must be prepared in order to direct the attention of the management to the future trends of the business, based on the results of the present trends and transactions. The budget actually affects the decision making process of the management and helps the system to reform the strategies and policies of the company. It allows the company management to critically analyze the activities running on in the business. The proper budget allows the management to predict the problems and issues as well as key opportunities that can be controlled or covered in the coming period. The budgeting enables the managers to achieve their objectives as well as important goals of the company more efficiently. A budget will remind the management about what objectives they have set and how they have to carry out those. An effective budget also helps the management in terms of performance evaluation. A budget leads to the management making authorized actions. As mentioned above, an effective budget helps the management process. In terms of this process, the first thing that needs to be considered is the planning period, which should be future-oriented. The proper planning is totally dependent upon the statistics of business, i.e. current financial situation, and most authorized proof for that is given by the budget to the management officials. An effective budgeting will also state the condition regarding the goals that have been set by the management in the beginning of the financial period, and whether the processes to meet these goals are being undertaken properly or not. This is ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Understanding Management accounting and Financial Management Essay”, n.d.)
Retrieved from https://studentshare.org/management/1394208-understanding-management-accounting-and-financial-management
(Understanding Management Accounting and Financial Management Essay)
https://studentshare.org/management/1394208-understanding-management-accounting-and-financial-management.
“Understanding Management Accounting and Financial Management Essay”, n.d. https://studentshare.org/management/1394208-understanding-management-accounting-and-financial-management.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Understanding Management accounting and Financial Management

Management and financial accounting

...? Management and Financial Accounting Table of contents Particulars Page No.s Introduction 3 F2 – Management Accounting: Solution – a: Solution – b: Table – 1: Table – 2: Table – 3: Solution – c: Table – 4: Working notes: Solution – d: 3-8 3 3 3 4 4 4 4-7 7-8 F3 – Financial Accounting: Solution – a: Solution – b: 1. Insurance 2. Bad debts treatment 3. Depreciation 4. Extract of Income Statement & Balance Sheet 8-12 8-9 9 9-10 10-11 11-12 Conclusion 13 References 13 Introduction: The real estate business has experienced a sharp down trend in the recent times. As such, people are on the job of improving their own homes...
2 Pages(500 words)Essay

Understanding Management accounting and Financial Management

...Blocher. 2006, Cost Management: A Strategic Emphasis. Tata McGraw-Hill Education: New York Davidson, I. 2009, Budgetary Control in Modern Organisation. New York: VDM Verlang. Gitman. 2007. Principles of Managerial Finance, Pearson Education India Kapil, S. 2011, Financial Management. Pearson Education: India. Libby, T. & Lindsay, R. 2010, ‘Beyond budgeting or budgeting reconsidered? A survey of North-American budgeting practice’. Management Accounting Research. Vol.21 (1) pp.56-75 Lynch, M., Lebonte, M. & Levit, M. 2011. ‘Adopting a Long-Term Budget Focus: Challenges and Proposals’ CRS Report for Congress. Retrieved from...
3 Pages(750 words)Dissertation

Understanding management accounting and financial management

...and Keynes' Internal Rate of Return The American Economic Review Vol. 45(5),938-943 Atrill, P. & McLaney, E. (2006) Accounting and Finance for Non-Specialists. 5th edition. Harlow, Financial Times/Prentice Hall. Brigham, E. F & Enrhardt, M. C. (2010) Financial Management: Theory and practices. 13th illustrated. Canage learning Brealey, Richard A. and Myers, Stewart C., 2003. Principles of corporate finance.7th ed. Irwin: McGraw-Hill. Collier,P.M. (2003) Accounting for managers: interpreting accounting information for decision-making.Oxford road. John Wiley. Damodaran, Aswath.,2002. Investment valuation: Tools and...
4 Pages(1000 words)Assignment

Financial Management and Accounting

...?Financial Management and Accounting Accounting refers to the recording, organization, analysis, and communication of an organization’s financial information. Financial management, however, defines control of an organization’s financial resources through planning and monitoring of the finance application. In this paper, I seek to discuss aspects of financial management and accounting in a healthcare organization’s setup – nursing home. Identification of the Type of Organization – Nursing Home A nursing home refers to a set of “facilities with three or...
3 Pages(750 words)Essay

MANAGEMENT ACCOUNTING AND FINANCIAL MANAGEMENT

...? Management Accounting and Financial Management: Vodafone Company Introduction Reward systems are critical inorganizations and their impact to the quality of life of people within the organization. The human resource management is among the most crucial functions in an organization. This is especially critical in entrepreneurial firms that start their businesses depending on competitive advantages of intellectual capital of the employees. This requires establishment of the right team, though this may be challenging. On the other hand, an incentive system comprises of structured motivation system that promotes specific-sought-after behaviours. Vodafone...
9 Pages(2250 words)Essay

Understanding management accounting and financial management

...in the first two months, the company needs to manage its working capital prudently in these two months so that they can finance the rest of the operations of the year easily. A budget is a financial and a quantitative statement prepared prior to a defined period of time of the policy to be pursued for the purpose of attaining a given objective. Furthermore a budget is an attempt made at the beginning of each financial year to plan the profit and loss account for the year and to aim for a definite balance sheet. This profit planning must be a well thought- out operational plan with its financial implication expressed as both long and short range profit...
4 Pages(1000 words)Assignment

Management accounting and financial accounting

...Management accounting and financial accounting College Introduction Professional accounting has persistently transformed itself, relative to the immediate community and the global prospects. The accounting body of body has stretched its span to cover wide areas such as financial accounting and auditing, management of systems information and taxation. The expert accounting conception and scientific accounting dexterity regarding measurement of performance, analysis, auditing and final reporting are as well pertinent to the supervision of healthy and...
12 Pages(3000 words)Essay

Financial & Management Accounting

...Financial & Management Accounting Importance in Maintaining Accountability 0 Introduction What do we understand from organisational performance excellence The answer, of course, depends on who you ask: a shareholder or an employee, a customer or a supplier, a local or international community, a regulator or a government. The role of accounting has changed in recent times to include social and ethical accounting. This aspect of accounting concerns itself with learning about the effect an organisation has on society and about its relationships with an entire range of stakeholders to whom it is accountable. These would include all those groups who affect and/or are affected by the organisation and its activities. It is a way... for...
19 Pages(4750 words)Essay

Accounting and Financial management

..., and thus may not be representative of longer periods.  4.  Financial statements provide an assessment of the costs and not value. For example, fixed assets are usually shown on the balance sheet as the cost of the assets less their accumulated depreciation, which may not reflect the actual current market value of those assets.   5.  Financial statements do not include all items. For example, it is hard to put a value on human capital (such as management expertise).  And recent accounting scandals have brought light to the extent of financing that may occur off the balance sheet. 6.  Accounting standards and practices vary among countries, and thus...
6 Pages(1500 words)Essay

Management accounting and financial accounting

...summarized data of the entire organization. It divides the company into business segments for which detailed reports about departments, customers, products, employees and suppliers are prepared. Generally accepted accounting principles must be used. The approach does not need to follow GAAP guidelines. Its application is mandatory for external reports. Internal reports are optional not mandatory requirements imposed on corporations. (Garrison & Norreen, 2003). An element that differ the two approaches which has consequences for planning purposes is the timeline perspective. Financial accounting is based on past historic information, while management...
11 Pages(2750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Understanding Management accounting and Financial Management for FREE!

Contact Us