Lo4 compare ways in which organizations could use management accounting to respond to financial problems
Answers
Answer:
LO1 Demonstrate an understanding of management accounting systems
Introduction to management accounting:
What is management accounting? Definition of management accounting.
What is a management accounting system?
Why is it important to integrate these within an organisation?
Explore the origin, role and principles of management accounting.
The distinction between management and financial accounting.
LO2 Apply a range of management accounting techniques
Microeconomic techniques:
What is meant by cost? Different costs and cost analysis.
Cost-volume profit, flexible budgeting and cost variances.
Applying absorption and marginal costing.
Product costings:
Fixed and variable costs, cost allocation.
Normal and standard costing, activity-based costing and the role of costing in setting price.
LO3 Explain the use of planning tools used in management accounting
Using budgets for planning and control:
Preparing a budget.
Different types of budgets (e.g. capital and operating). Alternative methods of budgeting.
Behavioural implications of budgets.
LO4 Compare ways in which organisations could use management accounting to respond to financial problems
Identifying financial problems:
Using benchmarks, key performance indicators (financial and non-financial) and budgetary targets to identify variances and problems.
Financial governance:
Definitions of financial governance, and how this can be used to pre-empt or prevent financial problems.
Using financial governance to monitor strategy.
Management accounting skill sets:
What are the characteristics of an effective management accountant?
How can these skills be used to prevent and/or deal with problems?
Effective strategies and systems:
The development of strategies and systems which require effective and timely reporting, full disclosure of financial positions and are responsibly owned and governed.
Answer:definition of financial governance and how this can be used to pre-empt or prevent financial problems
Explanation: