Role of Management Accountant in various Accouting Techniques

July 2022 | 11 pages | ID: R71485E5C64EEN
Sadia Saeed

Abstracts

Breakeven Analysis Research on this technique has been extensive. A number of studies have explored how management accountants use this technique for achieving a sustainable competitive advantage. It is widely used by managers for the purpose of achieving a faster cost recovery (Karanja, Mwangi & Nyaanga, 2014). One research article explored the effectiveness of breakeven analysis for German firms and companies. The purpose of the study was to evaluate the impact of management accounting techniques on the profitability of firms. Financial and other sources of data from these companies were used for analysis (Karanja, Mwangi & Nyaanga, 2014). The findings showed that breakeven analysis is effective only if takes into consideration a number of other important factors. It involves an estimation and analysis about the number of products or units that should be sold to achieve a certain point of profits. It is related to setting a sales target in advance and determining the breakeven point were higher levels of profitability can be achieved (Karanja, Mwangi & Nyaanga, 2014). The technique might seem simple but it is not easier to achieve. Many managerial accountants tend to overestimate their effectiveness in using breakeven analysis. It involves complex calculations, analysis of the market environment, sales forecast, demands of customers, utility of the product and customer purchasing behaviors. These factors collectively determine the success of firms and companies in using this technique (Karanja, Mwangi & Nyaanga, 2014). (Continued...) Wordcount of report: 2000 words

Contents

Deliverable 1
Deliverable 2
Role of management accountant in various accounting techniques
Deliverable 3
Management Techniques for Role of Management