Accounting System - Assignment

ACCOUNTING
SYSTEM

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Management accounting and their types.....................................................................................1
Methods of management accounting reporting...........................................................................2
Benefits of management accounting system...............................................................................3
Evaluation of accounting system integration and reporting method...........................................4
TASK 2............................................................................................................................................5
Marginal costing..........................................................................................................................5
Absorption costing......................................................................................................................5
TASK 3............................................................................................................................................6
Advantages and disadvantages of planning tools........................................................................7
Analysis of various planning tools and their application............................................................8
Evaluation of planning tools for responding to financial issues.................................................8
TASK 4............................................................................................................................................8
Comparison with other organisation financial issues..................................................................8
Management accounting leads organizations to achieve sustainable success...........................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Accounting system is the system that are using for the revenues, expenses and also for
other financial activities of a business. It is helping to track the business financial transactions
such as purchases, liabilities, sales etc. it is capable for generating comprehensive statistical
reports are providing to management and also to interesting parties to support decision making
process (Wickramasinghe, and Alawattage, 2012). In this report taking company Jupiter PLC, it
is a medium sized manufacturing company.
In this report covers different tasks and in task first explain of management accounting
system and their types. In task 2, calculate of budget with the help of marginal and absorption
costing. In task 3, using planning tools regarding to management accounting and in task 4,
Jupiter PLC compared to other organisations to solve financial issues.
TASK 1
Management accounting and their types
Management accounting is a tool used to prepare and provide statistical and financial
data on time. It also present accounting information which helps management to formulate
adopted policies and also to make short term and long term decisions. It is internal system used
by junior management accountant of Jupiter PLC so that they measure and evaluate their
management process effectively. The various management accounting system which is used by
them are mentioned below:
Job Costing System:
Job costing system is process of collecting data related to costs of manufacture and job
service. It also record the job cost of all products that are manufacture in company. This system
is used by Junior management accountant of Jupiter PLC so that they determine quality of
estimating system from accumulated information (Van der Stede, 2011). And also help to quote
cost of product which is acceptable to gain profit by collecting information about direct material,
direct labor and overheads.
Price Optimisation:
Price optimisation is process of discovering the structures of price which optimise goals
like revenues or acquiring customer targets. Junior management accountant of Jupiter PLC use
this system so that their products will sale rapidly in market with a sufficient profit. This system
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is used by company which is based on their competition level, manufacturing cost of products
and demand of each product. This helps them to balance the amount and profit of all product.
Inventory Management System:
Inventory management system is accumulation of technology with methods and
operations which manage and handle the maintenance of furnished stocks such as finished
products or raw materials and supplies. Junior management accountant of Jupiter PLC using this
system so that they monitor stocks regularly and optimise the management process by investing
in cloud based software. This will helps them to increase productivity, sales and get higher
return on investments (Lavia López, and Hiebl, 2014). It also helps accountant of company to
compute the raw materials closing value, progress of work and total expenses which is incurred
during business operation so that they prepare accurate financial statements.
Cost System System:
Cost accounting system is the method used by firm to record product cost activities
through different production process. It is important accounting system applied by Junior
management accountant of Jupiter PLC to ascertain their product cost so that they analyse the
profit, control the cost and examine the inventory. By adopting this system company gain some
benefits that are valuation of inventory, decisions related to acquisitions and so on.
Methods of management accounting reporting
Management accounting is also known as managerial and cost accounting, which shows
internal data obtain from financial accounting. This accounting make the internal reports which
are used by Junior management accountant of Jupiter PLC to plan, regulate and measure the
performance (Haustein, Luther, and Schuster, 2014). Accountant analyse the management
accounting reports to highlights definite activity and convert them into useful data which helps in
organisational growth. The different types of management accounting report used by the
company are explained below:
Performance Report:
Performance report is maintained to analyse the whole company performance including
employees. By using this report Junior management accountant of Jupiter PLC appraise the
performance and work of their employees also make strategical decisions for company growth.
And also by using it organisation to set criteria to improve performance level, to demonstrate
compliances and so on.
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