Management Accounting System : Report
20 Pages5062 Words151 Views
Added on 2020-01-16
Management Accounting System : Report
Added on 2020-01-16
ShareRelated Documents
MANAGEMENTACCOUNTING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3P1Explaination of management accounting and different management accounting system.......3P2Explaination on various methods for management accounting system...................................4P3 Calculation on unit costing by adopting the marginal and absorption costing methods toprepare income statements. Explain the difference among marginal and absorption costing.....6P4Explaination of the advantage and disadvantage of various kinds of planning tools used forbudgeting control.......................................................................................................................10P5 Comparison about how organisation are adapting management accounting systems torespond to financial problem.....................................................................................................12CONCLUSION..............................................................................................................................13
INTRODUCTIONIn every business organisation, finance plays a very crucial role in order to run businessfunction smoothly and effectively. In the absence of finance no business organisation can survivein the market. Proper management of finance and their effective utilisation is also verysignificant in the corporation. Managing finance is an activity of managing, evaluating andassessing financial performance in the company. In this manner, company places emphasis onpreparing the financial report (Bebbington, Unerman and O'Dwyer, 2014). This report assists ingetting the knowledge and information about the business performance and also assists in takingthe decision about resource allocation and organise activities. The following report provides adepth knowledge and understanding about the management of accounts and their operation in thecontext of R.L (Casini, Marone and Scozzafava, 2014)Maynard. In addition to this, differenttypes of management accounting systems and their implication in the business operation hasbeen also addressed in this report. Furthermore, comparison of various management accountingmethods has been also discussed in this report. Moreover, the various accounting systemmethods and its importance in managing finance has been also discussed in this report.P1 Explanation of management accounting and different management accounting systemManagement accounting is a process in which there analysing, interpreting and collectingaccounting information. It assists in taking the decision about daily business activities andfunctions. The major objective of management accounting is assessing the risk, allocate theresource and prepare statements of finance. This statement shows the company’s performance inthe field of profit and loss.As per the given scenario, general manager suppose to measure the managementaccounting of the R.L Maynard. In cited venture, manager have to take decision related toallocation of fund, organise activities and so on. In this manner management accountinginformation plays a very crucial role because with assistance of that Information Company caneasily access and analyse the company’s performance and its profitability. Managementaccounting information is a data driven approach through which business unit can able to takethe decision for long term. Following are some importance of management accounting in theManagement accounting assists company in taking the decision about how and what to sell thespecific kind of products and services. It serves information about the cost level to the largeextent. In addition to this, management accounting system aids in taking the decision about
marketing efforts and plan (Christopher, 2016).R.L Maynard manager required to focus on theseveral benefits and advantages of management accounting which are as follows-Aids in making decision about to produce or buy- In the R.L. Maynard managementaccounting information assist to firm in taking the decision related to what to produce andbuy. Cited venture manager can easily take the decision about the investment with help ofproper management accounting. Company can get an idea and forecast the futurerequirement of resources and finance in the business process by analysing and assessingthe management accounting information.Utilization of data: By using the financial accounting method, R.L. Maynard Limited cantake the suitable decision about the business activities and function for the upcomingfuture. In addition to this budgeting provides the information about business performancein the market. By identifying the profit and loss of business, R.L. Maynard Limited caneffectively allocate the resources and personnel’s can optimum use of the resources(Dagiliene, 2015). In this manner, company can adopt the suitable policies and practicesabout the business which would become able to develop suitable strategies for enhancethe financial position and performance.Different types of management accounting system that are essentials to the R.L.Maynard companyTraditional and cost accounting- This method assist in allocate the cost of production ofthose goods that are manufactured by the cited organisation. The process is that types ofmethodology assist in collection the direct cost and allocating the indirect cost which in usedin the production process.Lean accounting- This kind of method generally sued in the production and manufacturingcompany in order to control and decrease the additional cost and wastages from the process. Themajor aim of this method is to reduce the wastage and errors in the process and increase theefficiency of production and product and services. Most of the accounting sued this kind ofaccounting system to obtain the financial information immediately (McNeil. and Embrechts,2015). Thus this information assist in taking the suitable decision for business and control thefunction of management so as there will not any kind of risk and loss can occur in the businessorganisation.
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Report on Management Accounting and Its Benefits - R.L. Maynard Limitedlg...
|19
|5069
|63
Types of Management System : Reportlg...
|22
|5518
|228
Research Project On R.L.Maynard - Management Accountinglg...
|17
|5600
|34
Management Accounting: Reportlg...
|20
|4826
|31
Management Accounting in R.L. Maynard : Reportlg...
|22
|5316
|195
Management Accounting Report - R.L. Maynard Ltdlg...
|19
|5363
|70