Finishing Management Accounting Group Assignment, I Have Learned Many Useful Things

Finishing Management Accounting Group Assignment, I have learned many useful things.

Firstly I learned how to prepare budgets and variance report for manufacturing companies. During preparing forecast for two companies: Hayes and F02 Manufacturing Company, I realized that budgets are very important with the business. They help the business control costs well and can understand what should do in order to reduce risk and improve performance. On other hand, there are many types of budgeting methods which are top down, bottom up, zero based, fixed, flexible, etc. Businesses must choose suitable budgeting method for themselves based on the nature and structure of the company, each method's advantages and disadvantages. When calculating budgets, people must be careful because budgets relate to the future of the business.

After preparing budgets, I learned how to prepare variance report for Searcher Ltd. I had to calculate variances. I knew the fact was not always as in the company's budget. There are differences between actual and standard. Those differences are called variance. In order to find out problems, I calculated direct material