This report will demonstrate an understanding and recognition of the position and the role of management accounting for Supersnax Ltd, suppliers to the airline industry.
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This report will demonstrate an understanding and recognition of the position and the role of management accounting for Supersnax Ltd, suppliers to the airline industry. It will also analyse Supersnax Ltd problems by selecting and using a range of statistical and management accounting techniques. It will evaluate the relevance and significance of the results, explore assumptions, limitation and the wider implications, and make recommendations as a basic for planning, control and decision-making.
The table below illustrate the Cash Budget for the first six months, showing each month separately and the six months on total. The following information has been used in order for achieving the cash budget for the first six months:
- Cash at bank on 1 January is £300,000
- Monthly production and sales are equal throughout the year. Assume twelve months each of four weeks
- Debtors are allowed three months’ credit
- Creditors for material allow two months’ credit
- Creditors for expenses allow one months’ credit
- One week’s wages are kept in hand
- Depreciation including in production overhead is £12,000
- Payments for fixed assets are due in February and amount to £260,000