Management Accounting Research Paper Example | Topics and Well Written Essays - 1500 words

Management Accounting - Research Paper ExampleIn a case where the make is not being utilized, the live which is $9000 will be paid.Explanation The variable unit bell (unit cost of hamburgers) remains the same even if the deed of units sold change. However the total cost increases as the change magnitude number units is multiplied by the unit cost. On the other hand the unit fixed cost and total fixed cost (building rent) remains the same since its cost is not dependent on the number of units sold therefore all the cost has to be paid for the rent.Financial account illustrates the surgical operation of a business over specific periods (usually at the end of an accounting year). They are directed towards external physical exercisers of accounting information such as investors and creditors. These accounts typically present a historic view on the fiscal performance of the business 1Management accounting is used by the forethought to record, plan and control the activities of a business and to help in taking decisions. They can be made for any period or accounting year. It provides information for internal users like the employees, managers, and executives of the company. Management accounts largely focus on analyzing diachronic performance to give budgets and forecasts for the future. 1GAAP (generally accepted accounting principles) and Accounting Standards are followed in financial accounting part in managerial accounting there are no legal requirements to prepare management accounts. 2reportage FormatIn management accounting confidential financial reports are prepared for the exclusive use of top management within an organization. Specific accounting formulas and equations are used to reach to these reports. Such reports whitethorn includeSales Forecasting reports Budget analysis and comparative analysis Feasibility studies Merger and desegregation reports While on the other hand financial accounting helps prepare financial reports, that include the raw material reporting requirements of profitability, liquidity, solvency and stability. Both internal and external users can view these reports. 2Time Period of Informationmanagerial Accounting gives the management those reports that are future-oriented, while Financial Accounting give reports based on historical information to use statistical methods to reach at future values. 2Detail of InformationThe details from financial accounts provide information on the business as one unit rather than analyzing the varied elements of the business. 2 The management accounts focus on specific areas of the activities performed by the business such as information about its products, the different locations of business or the information about the departments. 2Nature of InformationThe nature of information provided by financial accounts is mostly monetary. While management accou