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Management Accounting of AGMET

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INTRODUCTION

Management accounting is an area related with activities of decision making, devising planning, performance management system, providing financial reporting expertise and planning formulation implementation of organisational strategy and its controlling. It is a planning and decision support system of an organisation. Management accounting system takes all financial and operational information and present reports which assists in decision making process. The present report is about the business Agmet which is a chemical product manufacturing unit. The report present the Agmet with different management accounting systems and report and their benefits. Application of various planning tools their advantages and disadvantages to the firm.

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TASK 1

A. Management accounting and its different types

Management accounting:

Management accounting is a combination of financial and statistical information and preparing of management reports on the basis of available information. These reports guide management of a business in decision making process (Maas, Schaltegger and Crutzen, 2016). Management accounting take into consideration the whole activities of the organisation which are accounting, financial, operational and statistical activities and take data and relevant information from these activities and make day to day business decisions.

The reports presented under management accounting system provides details information related to cash and cash equivalents available with the firm, revenues generated from sales, status of accounts payables and receivables, raw material, inventories and debtors and creditors of

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