MANAGEMENT ACCOUNTING

Introductory Management Accounting



Table of Contents

Introduction4

Methodology4

Discussion4

Result7

Conclusion and Recommendations8

References9

Appendix…………………………………………………………………………………………10

Abstract

Spreadsheets are computer program that is developed to organize and analyse information particularly facts in tabular form. These are the automated models of accounting worksheets. This study on spreadsheet utilization in understanding accounting information, involves quantitative analysis and quantitative methodology. The data for this research method is present in excel form and various excel functions are used to analyze and measure the data in order to interpret the result. The breakeven point in both scenarios is calculated by using trial and error method, where cost of producing computers and motorcycles is equal to profits from selling these items. The total cost is calculated as sum of total variable cost and total fixed cost. The total fixed cost remains same through out the production phase of the business but the total variable cost may vary from time to time depending on the variable items involved in the production phase such as labour per hour, raw material used in particular item, and other direct expenditures.

Introductory Management Accounting

Introduction

Spreadsheets are computer program that is developed to organize and analyze information particularly facts in tabular form. These are the automated models of accounting worksheets. The data i.e. figures of accounting information is presented in rows and columns. This program has the dual functionality of automatically calculating enormous data by using formulae or manual calculation. It has the ability to use both text and numeric data (www.utdallas.edu, n.d.).

Today, all businesses uses Microsoft excel to present manage and report financial information. This program is mainly utilized for reporting of business operating activities and helps in improvising the efficiency of accounting function. Many organizations formulate invoices via accounting spreadsheets. Accounting information such as budgets, financial statements, financial transactions, depreciation schedules, amortization schedules, interest rate tables, etc. can be produced via spreadsheets. This set of information can be saved and reproduced with variable data per month or year. The information is derived from usual paper work or documentation. These spreadsheets can be emailed to other functional departments as well for further analysis (Ragsdale, 2010).

Methodology

This study on spreadsheet utilization in understanding accounting information, involves quantitative analysis and quantitative methodology. The data for this research method is present in excel form and various excel functions are used to analyze and measure the data in order to interpret the result. The quantitative research is mainly referred to methodical realistic exploration of a social issue by using statistical and mathematical conducts. Its main agenda is to formulate a hypothesis and use mathematical models to prove its accuracy and reliability (Muntaner, 2003). In the given study, three scenarios are given that require utilization of Spreadsheets and Microsoft Excel s used as a tool to analyze the results of the given accounting information.

Discussion

The breakeven point in both scenarios is calculated by using trial and error method, where cost of producing computers and motorcycles is equal to profits from selling these items. In this regard, cost is compare to profits number of ...