Differences Between Financial Accounting and Management Accounting

1227 WordsOct 9, 20125 Pages
Introduction The purpose of this report is to discuss principles of and similarities and differences between financial and management accounting and to highlight how management accounting could be used to improve TVD’s performance. In particular, one of the management accounting techniques, benchmarking, is used as an example of how MA can help a business to run successfully. Today, accounting is an important aspect of business. The primary idea is to present financial and non-financial information so that the company can make good decisions and succeed financially. In other words, for a business or organisation to be able to communicate and exist there is a demand of accounting. There are two main types of accounting: financial…show more content…
This is the key to success in the catering business. Currently, TVD offers up-market fast food with average service and not a very high quality of food. To achieve a higher standard of performance, TVD should look at one of the most successful restaurants throughout the UK according to customers’ feedback – Nando’s. In twelve years, Nando’s has grown rapidly to operate more than 120 restaurants within the UK. The main reason for Nando’s success is their high quality of food and customer service. By analyzing the reasons for their success, TVD could learn from an organisation that is at the “leading edge”. A few potential success factors to study further are that Nando’s ingredients are delivered fresh rather than frozen, that they reduce the fat content of their food and that the food contains no preservatives or artificial flavours which make it attractive to health conscious customers. In addition, Nando’s aims to offer speedy and friendly service and guarantees that a customer will not have to wait longer than 15 minutes to get their food. Although it would increase costs to implement changes in these areas, for example by using fresh ingredients and employing more skilled and experienced staff, benchmarking could help TVD identify the factors that contribute the most to customer satisfaction and increased revenues.
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