Assignment : Management Accounting Doc
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Added on 2020-09-08
Assignment : Management Accounting Doc
Added on 2020-09-08
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Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1:Vital significance of various accounting system use in Ryanair management .....................3P2: Different method of management accounting reporting.......................................................5M1: Benefits of using management accounting system..............................................................6D1: Critical evaluation of Accounting systems and reporting....................................................7TASK 2............................................................................................................................................7P3: Calculation of net profit by using various costing methods.................................................7M2: Evaluation of accounting tools............................................................................................8D2: Interpretation of financial data.............................................................................................9TASK 3............................................................................................................................................9P4: Benefits and disadvantage of planning tools which would be useful in budgetary control .9M3: Evaluation of using various planning tools.......................................................................10D3; Critical evaluation of planning tools..................................................................................10TASK 4..........................................................................................................................................11P5: Comparison of Ryanair with Easy Jet in accordance with financial issues........................11M4: Critical evaluation of financial problems..........................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONManagement accounting is an effective system that assists management to manage andoperate various operations that are being done during an accounting year. By this help, managerswould easily make understanding of various systems and reports those are helpful in taking vitaldecision. The primary objective of this project report is to present and demonstrate various typesof accounting systems and reports those are useful for Ryanair company. With this, they canattain their long and short term aims and objectives (Abrahamsson, Englund and Gerdin, 2011). This project provide crucial information about various systems and costing methods thoseare helpful in analysing overall net profit of the company. Further, this report guide as aboutvarious planning tools that are associated with budgetary control. Examination of financial issuesand their effective measure are discuss under this project.TASK 1P1:Vital significance of various accounting system use in Ryanair management As mentioned in the case study about Ryanair airlines services which is operating twomost beautiful nation such as UK and Ireland. It is originated in 1985 by Ryan family. Theprimary objective of this airline company is to provide better and safe services to the passengersin order to attain sustainability in their business operations. In current time, Ryanair company isrelated with delivery entire services conventional airlines which has two different class of settingfacilities. At present they are associated with leasing of three types of attractive aircraft's. It hasbeen found that because of application of various approaches there is positive growth in totalnumber of passengers quantity but after sometimes, they need face losses in their businessoperations in 1990. such kind of issues where faced by company in turbulence of their operationsand firing of five best chief executives officers. After that management has decided to appointnew team member those are having the ability to overcome there losses. The objective of newmanagement team is to accomplish their set target by using better management systems and byfollowing appropriate rule and regulation (Becker, Ulrich and Staffel, 2011). Management accounting is an effective concept through which the valuable informationand financial transaction of an organisation can be manage by using appropriate system. The roleof managers is to collect all necessary information which is would crucial for the companyperformance and their overall growth. The day-to-day operations of Ryanair airline can be3
manage and recorded in daily basis this will leads to overcome their future losses. The variousreports and accounting systems which could be followed is consists of cash, sales income,account payable and other outstanding liabilities. Various management accounting which willincrease or boost the decision-making of managers are needed to be utilised in more effectiveand efficient manner. There are various types of accounting system that can be helpful to anorganisation. There essential requirement is to manage all three areas of organization such asstrategic, performance risk operation and operational department.Michael O' Leary is heldresponsible for new administration department and to make use of best accounting systems thatwould delivery more effective results to an organisation. Some of them are discuss underneath:Price optimisation system: It is one of the most effective accounting system whichwould assists in analysing overall perception of various customers. The basis elements ofmeasurement is related with the price which would be charges by the airline company from thepassengers. By the help of this system, Michael O' Leary can easily identify customer reactionabout their responses regarding setting of price for their various services. It also determine thatprices which is more suitable for the company in order to attain their goal as well as increaseoperating profitability during the time (Abdel-Kader, 2011).Cost accounting system: According to this system which is also determine as productand services costing system. It is used by the management of Ryanair airline to estimate abouttotal cost and expenses they are going to incur during delivery their services. In order to do sothey need to analyse their normal , standard and actual cost which would be more reliable in nearfuture.Inventory management system: It is taken in accounts as one of more significantsoftware which can easily track stock levels, orders , sales quantities and their delivery time. Bythe systems manager can manage and control their extra flow of stock those are happen to be themajor cause of losses. This software provide major solution to various challenges which wouldbe faced by the team while effective operation of stocks.Job costing system: As per this accounting system, management of Ryanair airline caneasily allot cost to each individual services which are going to be delivery during the initial phaseof operations. It is more effective in case of more than one services is being provided which isrelatively different from one another.Importance of using management accounting system:4
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