Management Accounting

Management Accounting

Introduction

Following the meeting of the department managers of the Free Air Skate Pty Ltd, this report seeks to provide the information that was required by various departments’ managers. It is important to start with elucidation of the roles of the management accountant to the organization. In a given organization like Free Air Skate Pty Ltd, management accounting deals with identification, measurement, analysis, interpretation, and communication of the financial information to assist the management in making decisions that are in pursuit of the goals of the organization[1]. Through the management accounting reports, the executive leaders of the organization are able to use the provisions of the accounting information to better inform themselves before making different decisions within the entity, such as whether to discontinue a given unit or not.

In Free Air Skate Pty Ltd, management accounting extends to performance management, strategic management, and risk management. Some of the roles of the management accountant include preparing internal cash budgets, performing variance analysis, evaluating the projected stream of income from a given project, unit or plant, and reporting various cash related issues in a way that will be understandable by the executive leadership of the firm. In line with this, this report explains the concept of cash budgeting and its poses as requested by the John Eustace based on the information provided by the finance manager (Sharon Boediyanto). The report also addresses the units of Snowskate, Surfskate, and Dirt skate that needs to be sold in

[1] Zimmerman, Jerrold L., and Massood Yahya-Zadeh. “Accounting for decision making and control.” Issues in Accounting Education 26, no. 1 (2011): 258-259…………….

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