Aspects of Management Accounting
Added on 2020-10-23
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Management Accounting
TABLE OF CONTENTS
INTRODUCTIONManagement accounting is the integral part of any business organisation. It is vital for themanagement in order to have a tool which stimulate their decision-making process for thebusiness operation in more effective manner. It is the process of presenting the financial andstatistical in context to business operations to management so that can assist them in makingdecision and strategies. This report assists the knowledge of different elements of the managerialaccounting that can be integrated in Brightstar financial. It is a special leading distributor whichoffers special residential and buy in commercial finance. The report will highlight differentmanagement accounting system that are essential in company. It also includes differentmanagerial accounting report that are beneficial for Brightstar financial. Further, the report willprove a deep insight regarding the planning tool for budgetary control. It will also demonstrateits importance in efficient and stable financial position of Brightstar financial. Furthermore,report will assist in analysing the several management accounting methods that are applicatedunder operational functions of organisation to deal with its financial problem.LO11.It can be termed as the process of managerial aspects of accounting. The importance ofthis tool is for managers in order to make more effective operational practices. It is a process ofpreparing and providing timely all financial and statistical information of business organisationto the manager so that they can formulate the short-term as well as long term decisions andstrategies for the Brightstar financial (Alawattage and Wickramasinghe, 2018). It can be definingas the process of operations which assist for applicating them in improving skills and knowledgefor stimulating the manager to understand the financial and non-financial information based ondifferent industrial operations.It is an essential tool that can be adopted by Brightstar financial to make the businessoperations more efficient. The different types of management accounting system which arebeneficial for the decision-making process for business operations in more efficient manner. Themanagement accounting system that are essentially required in Brightstar financial as follow:Cost accounting system: It is a key system for Brightstar financial which assist tindetermining each cost of company that are incurred in the production process of company. Cost3
accounting assist the manager for evaluating and analysing the cost of the product in order toanalyse the product profitability, inventory valuation and controlling the cost. Cost accountingsystem is an important tool for the management which assist the manager to track the flow ofinventory continuously through the various stages of manufacturing process (WHAT IS COSTACCOUNTING?, 2019). Cost accounting system can be effectively integrated in Brightstarfinancial, which will assist the manager to evaluate the cost of each manufactured product for theprofitable operations. The essentiality of this system for Brightstar financial in order to determinethe profitability in order to evaluate the correct price of the product. It can be said that,importance of this system in order to control the cost of production process.Inventory management system:this system is vital process which assist the manager inorder to track and record movement of goods in Brightstar financial. Inventory management canbe said as the process in order to evaluate and record of the goods of company throughout itssupply chain in an organisation. It can be said that, it is a very complex system as the managerhas to get a minute detail regarding every new and returned stock from the warehouse. It isessentially required in Brightstar financial in order to assist the manager to take decisions for thesupply chain and logistic system of a company. It can be beneficial for successfully integratedthrough different software for inventory management which will help in controlling theinventory management and assist in evaluating the under-stock and overstock of production.Price optimization system:it an essential accounting system which help managers incontrolling price of the resources that are are available in the company. Price optimizationsystem assist the manager in decide the price of the various product at a same time. This systemeffectively analyse the demand of a particular product in the market with the change in its pricing(ANAECHE and ALIO, 2018). it is beneficial for the Brightstar financial in order to determinethe pricing strategy in order to maintain the stable demand of the product in market and to gainthe minimum profit that will cover the manufacture cost of the product. price optimization assistthe manager to evaluate the correct selling cost of the product.2.Explaining various techniques used for managerial accounting reporting and their integrationwith in the organisation process.Managerial accounting report can be termed as the information of the financial andstatistical data of the different department of the organisation. Managerial accounting report is4
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