Management Accounting Research Paper Example | Topics and Well Written Essays - 1500 words

Management Accounting - Research Paper Example In a case where the building is not being utilized, the cost which is $9000 will be paid. Explanation: The variable unit cost (unit cost of hamburgers) remains the same even if the number of units sold change. However the total cost increases as the increased number units is multiplied by the unit cost. On the other hand the unit fixed cost and total fixed cost (building rent) remains the same since its cost is not dependent on the number of units sold therefore all the cost has to be paid for the rent. Financial accounting illustrates the performance of a business over specific periods (usually at the end of an accounting year). They are directed towards external users of accounting information such as investors and creditors. These accounts typically present a historic view on the financial performance of the business [1] Management accounting is used by the management to record, plan and control the activities of a business and to help in taking decisions. They can be made for any period or accounting year. It provides information for internal users like the employees, managers, and executives of the company. Management accounts largely focus on analyzing historical performance to give budgets and forecasts for the future. [1] GAAP (generally accepted accounting principles) and Accounting Standards are followed in financial accounting while in managerial accounting there are no legal requirements to prepare management accounts. [2] Reporting Format In management accounting confidential financial reports are prepared for the exclusive use of top management within an organization. Specific accounting formulas and equations are used to reach to these reports. Such reports may include: Sales Forecasting reports; Budget analysis and comparative analysis; Feasibility studies; Merger and consolidation reports While on the other hand financial accounting helps prepare financial reports, that include the basic reporting requirements of profitability, liquidity, solvency and stability. Both internal and external users can view these reports. [2] Time Period of Information Managerial Accounting gives the management those reports that are future-oriented, while Financial Accounting give reports based on historical information to use statistical methods to reach at future values. [2] Detail of Information The details from financial accounts provide information on the business as one unit rather than analyzing the different elements of the business. [2] The management accounts focus on specific areas of the activities performed by the business such as information about its products, the different locations of business or the information about the departments. [2] Nature of Information The nature of information provided by financial accounts is mostly monetary. While management accou

Financial Management Assignment Example | Topics and Well Written Essays - 4000 words

Financial Management - Assignment Example In this research we analyzed how the company could revive its position with the growth rate of 20% in revenues and would be the future impact of investment decisions and losses made at Kuwait by the company1. Research Methodology The research employs secondary research methodology for analyzing data and reaching conclusions. High emphasis had been laid on studying the annual statements of the company, e-journals, financial books and magazines. Organizational Background Industry Background The market research industry has grown globally into a number of areas and sectors including financial research, business research and marketing research. Companies like Grail Research, Global Insight and ICRA are one of the top most companies in this field globally. Companies with the help of innovative and latest technologies along with the use of various business tools, come up with results that are practical and profitable for many other companies. Also companies in this industry employ various pricing and differential strategies to be ahead of competition2. Company Information Synovate FZ-LLC is a market research consultancy in Dubai. It is a free zone company registered with limited liability pursuant to regulations issues by Dubai Government and Media Free Zone Private Regulations, 2003. The company current has revenues of AED 27.24 million with net loss of AED -5.4 million in 2008. The company is also having going concern issues currently. This is primarily due to negative equity of AED 6.6 million of the company along with the operating losses described above. The product and services of the company are basically related to industry research. The company has offices in over 60 countries and operates as a global brand in global market research firm3. Mission The mission of Synovate FZ-LLC is to showcase how market research is deriving changes in an enterprise, the market place as well as the society. Services As discussed earlier the company is into marketing research. The product and services of the company are basically related to industry research. The company has offices in over 60 countries and operates as a global brand in global market research firm. The company researches various companies, sector and industry for new investment opportunities of for some other specified reason. My Role I worked with Synovate FZ-LLC as a sales executive and I am in direct contact with the management team of the company and have thereby utilized my knowledge, experience and relationship for building this proposal. Financial Management The objectives of financial management are to maximise owners wealth by â€Å"Planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization†4. To achieve the above definition, financial management involves the following: 1. Financial Planning and control: how the resources will be managed effectively in order to achieve the financial objectives. 2. Managing of working capital: managing day to day operations, this includes managing current assets components: Cash and