Assignment on Management Accounting(MA)
Added on -2020-06-06
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MANAGEMENT ACCOUNTING
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting systems......................................................................................1P2 Methods of management accounting reporting.................................................................5TASK 2............................................................................................................................................6P3 Difference between income statement made through marginal and absorption costing...6TASK 3 ........................................................................................................................................10P4 Advantages and disadvantages of planning tools which are used for budgetary control10P5 Adopting management accounting systems for responding financial troubles .............12CONCLUSION .............................................................................................................................14REFERENCES..............................................................................................................................15.......................................................................................................................................................16
ReportFrom: Management Accounting Officer To: General ManagerSubject: To write a report to GM covering management accounting and management accountingsystem together with different costing techniques and reporting to enable the organizationimplement them.
INTRODUCTIONManagement accounting is the process of recording and identifying financial as well asnon-financial data for making crucial decisions relating to investment and operational control.Most of the enterprises face various kind of issues in their business because of changing externalenvironment and organisational policies (Cokins, 2013). Managerial accounting focuses onincreasing revenue by minimising wastage and finding new markets where investment can bedone for earning more profit. Earlier, companies were mainly coping up with financial problemslike maintaining right amount of cash in the firm etc. but now, complexity in doing business hasincreased importance of management accounting because it does not only resolve troublesrelating to managing money but it also assist different departments of a company like marketing,operations etc. Taj Store is a grocery shop in London. They are operating at low level but thisorganisation was founded in 1936. This assignment will explain various types of managementaccounting system along with their essential requirement. Some methods of managementaccounting reporting will also become part of this report. Income statement will be made byusing marginal and absorption costing and difference between them will get discussed. Topicslike planning tools and adaption of management accounting systems will be explained at the endof this file. TASK 1P1 Management accounting systemsMaking right decision in appropriate time is a difficult task, most of the managers startedusing various systems of management accounting because they know that this form of accountscan resolve many issues relating to financial and non-financial problems. For a small companylike Taj Store, raising finds is not easy. They seek high amount of loan at low rate and try tolocate correct areas where investment can be made for attaining high returns. Financialaccounting can help in making significant decisions up-to a limit (Chen, Weikart and Williams,2014). They mainly concentrate on recording of data instead of analysing them for the benefit ofmanagers. Difference between financial and managerial accounting:
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