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we understand that accounting creates a lots of problem for you. Managerial accounting is a branch of accounting that assists management of an organization to form plans and policies for fulfilling the company’s objectives. You can learn about the principles and practices of Management accounting using our Accounting Assignment Help. For example, Managerial Accounting is related to aspects of costs and consists both financial and cost accounting concepts. The major orientation of the Managerial Accounting is concerned with evaluating policy and making plans to fulfil desired aims. Managerial Accounting forms corporate planning and strategy effective and purposeful.
Why Managerial accounting is considered to be an important branch of accounting? As we pointed out earlier that managerial accounting is all about making decisions and planning things on the basis of cost and expense. Important organizational decisions are driven by Managerial Accounting. Students who understand that practical applications of managerial accounting stands a good chance to crack a job interview for internship and final placements.
While making plans for the future, the management of the company adheres and follow the master budget procedure. To make a budget and to understand how costs act, the decision makers must understand the relationship among three parameters – cost, volume and profit. These three parameters help to explain how changes in volume or price will affect the profit of a company.
The method used in writing homework is to clearly explain the topics related to the subject as well as how to implement the concepts and approach in practical applications. Below are the few area of management accounting where you can take assistance from our experts:
Generally accepted accounting principles (GAAP) – It relates to the standard framework of guidelines for financial accounting implemented in any provided situation; mostly called as accounting standards. This standard practice consists of the standards, norms, and the rules which an accountant adheres within noting and integrating and while making the financial statements.
Cost Volume Profit Rule – This rule is derived from cost accounting. It is very simple to understand the model, beneficial for initial instructions and for short term purpose decisions. It widens the use of the details given by breakeven analysis. A critical part of Cost-Volume-profit analysis is that point where total capital is same as total expense. At this breakeven point, an organization will have no profit no loss.
Margin of safety- It is the margin between the actual cost of a stock and its market price. In Break-Even point (where company experience no profit no loss), margin of safety is how much income can be lesser preceding a firm level its break-even point.
Contribution Margin Method – It is the pricing strategy which maximizes the profit coming from a single item or service, depending on the difference between the item’s price and variable cost, and on one’s premise concerned with the relationship between the item price and the quantity of units which were sold at that cost price. The item contribution to the total profit of an organization is highest when the cost is decided which will maximize the 'Contribution Margin per Unit * Quantity of items Sold'.
Cost Drivers – It is a factor that leads to a change in the price of an activity. For example – In marketing, cost drivers can be number of adverts, numbers of sales personnel related to the company. In customer relation, Cost drivers can be number of customer calls received, number of staff in the service department and many more. Therefore, cost drivers can be regarded as the structural determinants of the price of an event, depicting any association which will produce any impact on it, so we can premise that the cost drivers find the behaviour and relationships of cost among the activities.
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