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Role Of Management Accounting

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1928 words
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AAF001-6 FINANCIAL ANALYSIS ASSESSMENT 2 INDIVIDUAL REPORT MANAGEMENT ACCOUNTING FOR “ASDA” Written and Submitted by: NAME – Saikat Panja Student ID - 1223846 SUBMISSION DATE: Monday 23RD JANUARY 2015 Table of Contents Page Number Introduction 3 Nature and Role of Management Accounting 4 Management Accounting Techniques to be Used 5 Strengths and Weakness 7 References 8 Introduction ASDA is the subsidiary of WalMart, who is the retail giant in the world. ASDA retail store is mainly based on foods, clothing, and toys for children, general items, mobile phone networks, financial services and oil pumps. But I chose this company apart from the fact that it is UK’s biggest retail chain. Now people …show more content…

In this essay, the author

  • Explains that asda is a subsidiary of walmart, which is the world's largest retail chain. the threat of global warming is already being felt in the fresh foods section.
  • Explains that management accounting is different from financial accounting because managers have to take the future decisions by looking at the past financial statements. management accountants have a responsibility to moral qualities which has to be kept intact.
  • Explains that the two techniques to be used to solve the above mentioned problems are the zero based budget and the periodic budget.
  • Explains denniscaplan.fatcow.com's chapter 1: management accounting defined, described and compared to financial accounting.
  • Cites management, 4. (2015). 4 activity based cost systems for management. academia.edu.
  • Describes the definition and meaning of management accounting at business dictionary.com.
  • Explains that asda: 95% of our fresh produce is already at risk from climate change.
  • Analyzes how asda's five-year strategy is the right one, according to lawson.
  • Describes management accounting as the process of preparing reports and accounts that provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions.
  • Opines that asda can control global warming by taking measures, such as reducing the supply of water, and identifying farmers who follow monoculture production.
  • Opines that asda should open small retail stores within the towns so that the customers can walk and reach the shop for shopping.
  • Explains the strengths of their assessment, which is that the problems mentioned above are faced in the real world by asda.

In Financial Accounting accountants prepare only the annual finance statement of any organization and shows if the organization is going in profit or loss. But in Management Accounting the managers have to take the future decisions and steps by looking at the past financial statements. So Management Accounting is very important because one wrong decision can transfer the organizations path or the future. Management Accountants have a responsibility to moral qualities which has to be kept intact by using their various skills, which will ultimately help the shareholders of any organization to retain profits earned from the money invested. Strategy formation by executing plans, budgeting and forecasting, risk management and decision making all these are required as skills in Management Accounting. In Management Accounting a manager has to have knowledge on both the financial and non-financial terms of the business and operational sides of the business. Both the financial and non-financial items are reported and analyzed by the managers to come to any decision. Again, the corporate social performance is also analyzed and a report is made on that. They have to take care of the other points also, i. e, profit of the organization, the final and end users, i. e ,customers and their satisfaction levels, employees of the organization, environmental matters related to the …show more content…

(2015). 4 Activity Based Cost Systems for Management. [Online] Academia.edu. Available at: http://www.academia.edu/3882382/4_Activity_Based_Cost_Systems_for_Management [Accessed 23 Jan. 2015]. • BUSINESSDICTIONARY.COM What is management accounting? Definition and meaning In-text: (BusinessDictionary.com, 2015) Bibliography: BusinessDictionary.com, (2015). What is management accounting? Definition and meaning. [Online] Available at: http://www.businessdictionary.com/definition/management-accounting.html [Accessed 23 Jan. 2015]. • CONFINO, J. Asda: 95% of our fresh produce is already at risk from climate change In-text: (Confino, 2014) Bibliography: Confino, J. (2014). Asda: 95% of our fresh produce is already at risk from climate change. [Online] the Guardian. Available at: http://www.theguardian.com/sustainable-business/asda-food-waste-risk-climate-change [Accessed 23 Jan. 2015]. • LAWSON, A. Analysis: Is Asda’s five-year strategy the right one? In-text: (Lawson, 2013) Bibliography: Lawson, A. (2013). Analysis: Is Asda’s five-year strategy the right one?. [Online] Retail-week.com. Available at: http://www.retail-week.com/sectors/food/analysis-is-asdas-five-year-strategy-the-right-one/5054989.article [Accessed 23 Jan.

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