Key managerial roles in accounting
Planning and budegetting
Cost management
Decision making
Planning and budgeting
Assists in setting financial goals and preparing budgets
Doubles entry bookkeeping ensures accurate financial records for planning
Cost management
Cost classification - identifying categories such as direct and indirect costs and variable and fixed costs which aids cost control
Production and non production overhead - helps in preparing manufacturing accounts and managing costs
Decision making
Cost volume profit analysis - assists in making short term decisions like make or buy , selling spare capacity , and eliminating loss making departments
Income statment and balance sheet - Provides insight into financial health for strategic decisions longer terms
Production manager report includes
Direct materials
Direct labour
Direct expenses: factory , power , maintenance , rent , depreciation , communications/security
Admin / s and d report covers
Office salaries , office rent , office communications / IT , HR/ welfare advertising
What is Financial management and information systems defined by ?
Financial
Management
Information
Systems
Financial
Focus on money
Management
Achievement of business objectives
Information
Process data effectively communicated
System
Inputs , processes and outputs
Margin of safety
If negative company’s current sales volume is below break even point so business is operating at a loss also not generating enough revenue to cover fixed and variable costs
If positive above BEP this is profitable
