Management Accounting of Excite Entertainment Limited Assignment
Added on 2021-02-19
16 Pages4415 Words138 Views
Finance
|
|
|
MANAGEMENTACCOUNTING
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1TASK 1............................................................................................................................................1TASK 2............................................................................................................................................5TASK 3............................................................................................................................................8TASK 4..........................................................................................................................................10CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONThe management accounting is a form of accounting which is associated with gatheringand analysing of financial & non financial information about companies' transactions in order toprepare internal reports (Aouni, McGillis and Abdulkarim, 2017). This is the main function ofMA because its objective is to helping companies' managers in decision making by providingreliable informations. This accounting is not essentially required in companies as otheraccounting methods. The objective of project report is to spreading information about role andfunctions of MA in the aspect of companies operations and activities. In the project reportvarious types of MAS , MA reports, planning tools of budgetary control are included. For betterunderstanding of these tasks a company is chosen which is Excite entertainment limited thatoperates in entertainment industry. This company is located in United Kingdom. MAIN BODYTASK 1Section (A)(a) Comparison between management accounting and financial accountingBasisManagement accountingFinancial accountingLegalrequirementThe management accounting is notessential for companies to implementin their operations. It depends oncompanies' willing whether they wantto apply this accounting or not. On contrary, the financial accountingis essential for companies to apply inorder to produce financial statements. Format ofpresentationIn this accounting, internal reports areprepared without any particular format.While in financial accounting,financial reports are prepared asaccordance to international financialreporting standards. Types of datausedUnder, management accounting bothtypes of data including monetary andnon monetary are used in reports. On the other hand, in financialaccounting only monetary informationis included. 1
Different types of MAS :(b) Cost accounting system – This is a kind of accounting system that links with companies'financial department because it predicts possible expenses (Vann, 2016). On the basis of it,business entities allocates their funds in various kind of activities and operations. In addition, thisaccounting system is compulsory for companies to apply because of its importance for financedepartment as by use of information provided by this accounting system they can focus on thoseactivities which are high cost consuming. Under this accounting system, various costingtechniques are included such as absorption and marginal costing. Both these techniques help inthe aspect of better decision making regards to fund management. Like the above Exciteentertainment limited company is applying this accounting system in the aspect of controllingand reducing their expenses as accordance of standard cost. (c) Inventory management system – It can be defined as a type of accounting system that assessthe information about companies stored material in warehouses and provides guidance tocompanies' managers for effective management of inventories (Arunruangsirilert andChonglerttham, 2017). This is too crucial for companies because in the absence of it, businessentities can not control storage cost. Basically, the inventory management system consistsvarious kind of techniques such as just in time, perpetual inventory management system andperiodic inventory system. All these techniques play a significant role for companies in order tobetter management of their materials. The just in time technique is important for minimising timeof manufacturing. As well as the perpetual inventory system helps in keeping inventory recordsup to date. Like in the aspect of above Excite entertainment limited company, they are managingtheir inventories by help of these techniques. (d) Job costing system – This is a kind of accounting system which is related with process ofcomputing cost of each job involved in different business activities (Nakajima, Kimura andWagner, 2015). In addition, it is mainly used for those companies in which large number ofproducts are produced. Due to this accounting system price of each unit is being calculatedindividually. The job costing system is required in companies for proper assessment of costduring entire manufacturing process. In the context of above respective company, Excite2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Management Accounting: Role, Functions, and Techniqueslg...
|16
|4283
|47
Management Accounting: Tools and Techniques for Financial Problem Solvinglg...
|12
|3089
|59
Management Accounting: Comparison, Costing Techniques, and Planning Toolslg...
|16
|4563
|47
Management Accounting - Excite entertainment limited Assignmentlg...
|17
|5047
|58
Management Accounting Systems and Reports in Excite Entertainment Ltdlg...
|16
|4608
|77
Management Accounting: Types of MAS and Managerial Reportslg...
|18
|5492
|21