Unit 14 – Advance Management Accounting

Do not forget to add Assignment front page as the cover page for your assignment. You must
insert your name, term , cohort and the declaration in the cover page.

Start your Assignment report with a good introduction at the beginning and an effective
conclusion at the end. You need to follow Harvard Referencing system in your report.

LO1 Analyse the purpose for developing and presenting financial information 

P1 Analyse the purpose and presentation of financial information from the perspective
of different stakeholders

Stakeholders: This include investors, senior management, banks, creditors and government
etc. Explain what information they look for in any financial statements of the organization of
their interest.
 
Developing financial statements: 
Why financial information should be developed into statements. Discuss the value of
financial statements in support of a financial plan or decision making in a business. 
 
Presenting financial information: 
Discuss what information 1) profit and loss statements 2 ) cash flow statements and 3)
balance sheets contain.  While doing so you would also discuss about the structure of these
financial statements.

Based on your critical analysis and the strength of the arguments, merit and distinction grades
would be awarded.

LO2 Evaluate the use of management accounting techniques to support organisational

performance 
 
P2 Evaluate the use of different accounting microeconomic techniques in application to
supporting organisational performance

Microeconomic techniques: This includes cost analysis- absorption and marginal costing. ,

cost-volume profit ( breakeven point analysis), flexible budgeting and cost variances.
consider
 
-Discuss the Cost allocation and Appropriation in absorption costing basis.
-Discuss how pricing decision is made in marginal costing basis.  
 
Capital budgeting:  Discuss the meaning of these terms, their importance and their use.
Describe the key capital budgeting techniques based on discounted cashflow basis and non-
discounted cashflow basis with examples:

Discounted cashflow methods

Net Present Value (NPV),
Internal Rate of Return (IRR),
Non- discounted cashflow methods
Pay back periods. 
Accounting Rate of Return
Based on your critical analysis and the strength of the arguments, merit and distinction grades
would be awarded.

LO3 Analyse actual and standard costs to control and correct variances

Explain Actual costs and Standard costs in brief with respect to how they are determined and
are different with each other. How is standard cost different than the budgeted cost?
Explain how Actual and budget cost help to calculate variances with emphasize to:
-Variance analysis as a concept and a technique.
-Favourable and un-favourable variances.
Explain how to control and correct variances by
-integrating variance analysis into budget monitoring giving example of a business
organisation.
-discuss reporting systems for monitoring and controlling variances.
Give examples of various cost and usage variance.
Based on your critical analysis and the strength of the arguments, merit and distinction grades
would be awarded.

LO4 Evaluate how a changing business environment impacts on management

accounting
-Identify and describe changes in Internal and external analysis techniques over the past few
decades.
-Comparing the outcomes of analysis for old versus new decision making techniques in
management accounting.
Discuss the Impact of the business environment on management accounting systems. You can
use the PESTLE analysis tools to analyse the impact with emphasize on the following:
-Using technology to enhance and support processes and procedures.
-The role of improved communication to expedite decision making.
Analyse the impacts of change on the various aspects of management accounting systems by
-Determining the impact of different types of change and deciding how to respond to the
different types of changes.

Based on your critical analysis and the strength of the arguments, merit and distinction grades
would be awarded.