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Assignment on Management Accounting pdf

   

Added on  2020-01-16

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Management Accounting
Assignment on Management Accounting pdf_1
Table of ContentsINTRODUCTION ..........................................................................................................................2TASK 1 ..........................................................................................................................................2P1 Management accounting and its types...................................................................................2P2 Different methods for management accounting report..........................................................3M1 & D1 Advantages and application of management accounting system with integration ofmanagement accounting reporting in an organisation................................................................4TASK 2............................................................................................................................................5P3 & M2 Cost per unit and income statements as per marginal and absorption costing............5D2 Interpretation of financial report of Dell...............................................................................7TASK 3............................................................................................................................................7P4 Advantages and disadvantages of different type of planning tools which are used forbudgetary control........................................................................................................................7M3 Use of different planning tools and their application in preparation and forecastingbudgets in the context of Dell.....................................................................................................9D3 Evaluation of how planning tools respond appropriately to solving problems in the contextof Dell..........................................................................................................................................9TASK 4 .........................................................................................................................................10P5 Comparison between Dell and Lenovo................................................................................10M4 Analysis of how management accounting can assist in facing financial problems and toattain sustainable development.................................................................................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
Assignment on Management Accounting pdf_2
INTRODUCTION Management accounting is all about management and control of funds that are availablewith a firm in order to attain some quality in terms of return by the employment of thoseavailable funds. In this report several concepts and facts has been mentioned on the basis of thecase study of Dell through which reader can get acknowledged of various techniques ofbudgetary control on the other hand reader can get a brief information about managementaccounting and how it works. Entity is an American privately managed and owned companywhich has its headquarter situated at Rock, Texas of United States. It deals in computertechnology further it is a multinational company. Founder of company was Michael Dell andthrough his and its management's good managing skills it has been marked in the list of largesttechnological corporation of the world.TASK 1 P1 Management accounting and its typesIt is a mix of financial and cost accounting systems. Through this system user can collect,analyse, measure and properly execute its working so that they can attain their goals andobjectives. This will help an entity to take decisions in order to create policies and to maintaindaily businesses. Through this an accountant can analyse the market and its elements which mayaffect the financial position of cited entity. Because proper maintenance of funds is necessaryotherwise cost associated with such funds will start making adverse impact over firm. There arevarious management accounting systems some of them are mentioned below:Inventory management system: It is a systematic process of transfer of good and services tothe company’s location. A business organization is required to manage their stock in a mannerwhich can deliver of products on the right time which can increase the customer satisfactionlevel in an effective manner. The main aim of such system is to understand the concept ofinventory which can help to minimise the operational cost and increase the effectiveness of thecompany so that it can increase the profit and revenue which is a sole aim for each and everybusiness firm. Job costing system: It is a systematic monitoring system where a company monitor its overallcost and keep track of all expenses in an effective manner. This approach helps to understand themanufacturing cost and divide these cost in the various overhead such as direct cost, indirectcost, variable cost, labour cost etc. This is one of the significant in which company can estimate
Assignment on Management Accounting pdf_3
their overall cost for a product so that they can control various elements such as raw materials,labour hour and other aspect in order to utilize these resources in an effective manner. Price optimization system: A business is operating their business in order to earn profit andreduction in the cost associated with the product and services. In the context of Dell required touse various aspects of price optimization so that they can sustain their revenue by their operation.In this way, a firm is tries to reduced its product cost so that they can attract large number ofcustomers in order to meet their short and long term targets. Cost accounting system: This system used by the various manufacturing units where they tractand record all cost associated with the product or services. In this way, there are different typesof elements which required to record the expenses so that they can keep such record for theirfuture references. P2 Different methods for management accounting reportThere are various methods for reporting and these are as follows: Performance report: This is one of the significant reporting where a company is required toorganize the overall aspects. It is related with the evaluating the performance level of a companyon regular basis so that corrective measures will be made in the near future. For instance, citedfirm is required to examine the current performance so that business organization can attain theirtargets in an effective manner. Inventory control report: This reporting is related with the measuring and tracking of stocklevel of a company on regular basis. The main motive of this type of report is to control wastageof materials. Inventory control one of the complicated task for each and every businessorganization which required manage their stock level at the optimum cost. This is significant fora company is to understand the overall concept and make increase efficiency in an effectivemanner. Job costing report: This report contains the various information and detail for a particular job inorder to calculate cost per unit for a job. It is essential for a company is to prepare such reportwhich can make financial decision making more effective. Budget: This is one of the most critical part of reporting which related with the estimation ofoverall cost of a project or task. A business organization is required to prepare a report wherethey identify different types of cost associated with the project so that they can control their
Assignment on Management Accounting pdf_4

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