There are twenty-five employees and annual sales revenue is approximately £2m per year. As Management Accounts Assistant of Easy Seat Ltd; you are required to produce a report considering the different planning tools that could be used to aid forecasting and budgetary control.
Lately, Easy Seat Ltd has run into some cash flow problems. You have been advised to suggest how planning tools such as budgeting can be used to ease out the liquidity problem at Easy Seat Ltd.
LO3: Explain the use of planning tools used in management accounting.
Explain the advantages and disadvantages of budget and budgetary control as a planning tool. Further, analyse the use of different planning tools and their application for preparing and forecasting budgets for Easy Seat Ltd
LO4: Compare ways in which organisations could use management accounting to respond to financial problems.
Identify and compare two management accounting systems and how they are being used to respond to financial problems by organisations.
Further, analyse how in responding to financial problems, management accounting can lead an organisation to sustainable success.
Evaluate how planning tools for accounting respond appropriately to solving problems to lead an organisation such as Easy Seat Ltd. to sustainable success.