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Management Accounting Assignment

The document outlines the role and objectives of management accounting, highlighting key areas such as financial planning, cost management, and risk management. It also discusses differences between management and cost accounting, as well as various audit types and their objectives. Additionally, it addresses limitations of financial statements and common problems in ratio and statement analyses, concluding with assignment submission guidelines.

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303 views12 pages

Management Accounting Assignment

The document outlines the role and objectives of management accounting, highlighting key areas such as financial planning, cost management, and risk management. It also discusses differences between management and cost accounting, as well as various audit types and their objectives. Additionally, it addresses limitations of financial statements and common problems in ratio and statement analyses, concluding with assignment submission guidelines.

Uploaded by

gowdanishu729
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

St Joseph’s College, Hassan

C1 and C2 Assignment of
Management Accounting
Due Date: 28 March 2025
Role of Management Accountant
• - Financial Planning and Analysis
• - Cost Management
• - Performance Evaluation
• - Decision Support
• - Risk Management
• - Internal Control and Compliance
Objectives of Management
Accounting
• - Planning and Control
• - Decision-Making
• - Performance Evaluation
• - Cost Management
• - Risk Management
• - Strategic Planning
Differences: Management vs Cost
Accounting
• 1. Objective: Decision-making vs Cost control
• 2. Focus: Internal vs Cost data
• 3. Scope: Broader vs Narrow
• 4. Time: Future-oriented vs Historical
• 5. Techniques: Budgeting vs Standard costing
• 6. Regulation: No statutory requirement vs
Governed by principles
Steps in Management Audit
• 1. Preliminary Review
• 2. Defining Scope and Objectives
• 3. Data Collection
• 4. Analysis and Evaluation
• 5. Reporting
• 6. Follow-up
Limitations of Financial Statements
• - Historical Nature
• - Non-Monetary Information
• - Inflation Impact
• - Manipulation Possibility
• - Limited Comparability
• - Static Information
Differences: Cash Flow vs Fund
Flow
• 1. Objective: Cash movement vs Working
capital changes
• 2. Basis: Cash basis vs Accrual basis
• 3. Time: Short-term vs Long-term
• 4. Classification: Operating, investing,
financing vs Sources and application
Differences: Financial Audit vs
Management Audit
• 1. Objective: Verification vs Efficiency
evaluation
• 2. Scope: Financial records vs Managerial
policies
• 3. Regulatory: Mandatory vs Voluntary
• 4. Reporting: Shareholders vs Management
• 5. Focus: Compliance vs Effectiveness
Problems in Ratio Analysis
• 1. Low Current Ratio - Increase assets or
reduce liabilities
• 2. High Debt-Equity Ratio - Reduce debt or
issue equity
• 3. Low Net Profit Margin - Increase sales or
reduce costs
Problems in Common Size
Statement
• 1. High Expenses - Control costs
• 2. Declining Revenue - Improve sales
strategies
• 3. Fluctuations in Gross Profit - Renegotiate
vendor contracts
Problems in Comparative
Statement Analysis
• 1. Revenue Fluctuations - Analyze trends
• 2. Declining Margins - Control costs
• 3. Increased Operating Expenses - Review
overheads
Final Note
• - Assignment to be written on A4 size sheet.
• - Late submission will not be accepted.
• - Last date: 28 March 2025.

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