Managerial Accounting Assignment Example | Topics and Well Written Essays - 2500 words

Managerial Accounting - Assignment Example The company also was awarded with wine award and a gold medal in the wine competition at Sydney in 2011and with medal of gold at an Award function in New Zealand in 2010. With respect to 2010 the EBITDA of the company grew from $29.6 million to $57.1 million in 2011. This resulted in their earnings per share of the company rising from 0.20 cents to 32.6 cents. The rise in the net assets of the company by 10% over the year is a commendable achievement for the company under the ever changing market conditions. Planning Control and Decision making process Management accounting is related to the system of accounting information used by the managers within an organisation. The management accounting provides the managers with the basis of information essential in the decision making of the company so that the resources of the company can be better utilised and functions are in control. At present management accounting has a dual reporting relation in the corporation. The management account ants are the strategic partner responsible in providing decision related to the operational and financial information. Thus it is the responsibility of the managerial accountants in managing the business team along with submission of report in relation to the corporation’s finance. The management accountant portrays planning and forecasting, monitoring and reviewing cost inherent to the business and performance variance analysis of the company. However the three main areas of a management accountant that helps in the planning and decision making of managers are strategic management, performance management and risk management (Bamber, Braun & Harrison, 2009, pp.4-7). Delegat’s Group has adopted the strategy of identifying the â€Å"value growth markets† and â€Å"growth markets† which has proved to be a success in the favour of the company. The strategy thus adopted by the company has resulted in delivering improvement in the profitability of the company. The performance management of the company can well be depicted from the financial performance of the company. A stable growth rate of 10% of operating net profit after tax has been observed from 2007 to 2011 except in 2008 which are due to the global economic downturn. The major improvement in the performance of the company was due to biological assets contribution, net harvest provision and the derivative instruments of the company implemented to hedge the company’s interest rates and foreign currency exposures. Lastly the risk performance of the company is diverted by the use of the options and forward currency contracts. This helps in the economic hedging of the risks associated with the interest rate swaps and foreign currency fluctuations. Thus the management accounting helps in the detection of the variances of the company through which the managers of the company can plan out the strategies of the company; based on which further decisions are taken. Skills of a Managem ent Accountant Skills that are required for a management accountant to efficiently carry out the process of accounting are to have a sound knowledge of both managerial as well as the financial accounting. The management account should have an analytical skill along with the knowledge of how the business of the company is functioning. Good oral and written communication skill is a must for the