Techniques of Management Accounting

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  • Level: High school
  • Pages: 27 / Words 6709
  • Paper Type: Essay
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Question :

This assessment will cover following questions:

  • Prime Furniture is a furniture company that makes all kinds of furniture including tables, chairs, etc. Use a range of management accounting techniques.
  • Determine the use of planning tools used in management accounting.
  • Differentiate the ways in which organisations are able to use management accounting in response to financial problems.
Answer :
Organization Selected : Prime Furniture.


Management accounting is defined as the process of determining the cost of business and operations to prepare financial records and reports that supports decision-making of management in achieving the goals of company (Childress and, 2015). The Report is based on Prime Furniture. The Report will outline various management accounting techniques, use of various planning tools in management accounting. Further, it will also describe ways in which different organizations are using management accounting to respond to financial problems etc.

Application of Techniques of Management Accounting

Overview of Management Accounting-

The term management accounting refers to the presentation of information with the aim of developing policies that are to be adopted by the management and supports in day-to-day activities. It uses the details related with operations of business to prepare reports that offer consistent insight into profit margin, labour utilization of the business that acts as an input to take routine decisions (Christian, 2018).

Microeconomic Techniques :


It means the amount that has to be paid in order to get something . In business, cost refers to monetary valuation of material, labour, time, resources etc.

Types of Cost-

a) On The Basis of Nature of Costs-

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