logo

Assignment: Management Accounting (Pdf)

   

Added on  2020-10-23

17 Pages4928 Words163 Views
Management Accounting

Table of ContentsINTRODUCTION...........................................................................................................................1LO1..................................................................................................................................................1P1 Management accounting and requirements of different types of management accounting...1P2. Different methods use for management accounting reports.................................................4LO2..................................................................................................................................................6P3 techniques of cost and analysis of income statement through different costing techniques..6LO4-.................................................................................................................................................9P4 Planning tool which is used in management accounting and its advantages anddisadvantages..............................................................................................................................9P5 company could use management accounting to response financial problem......................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13

INTRODUCTIONManagerial accounting is the process of identify, analysing and measuring andcommunicating all information to company manager that helps to take effective decision andmake strategy for achieving the organisation long term and short goals and objectives.Management accounting is use for internal which use to evaluate cost of the product andpreparing budget. Present report is based on Unicorn, small sized firm, which provides customerswith retail products & services. Report will include management accounting concept, types andmethods used to prepare management accounting report. It also includes techniques of costanalysis which is appropriate to prepare marginal costing and absorption costing of the company.Tools of budgetary controls and its advantages and disadvantage also includes that organisationuse management accounting system to solving financial problems of the company.LO1P1 Management accounting and requirements of different types of management accountingManagement accounting is the provisions of accounting used by managers which helpthem in decision making by providing important information. Management accounting help inmaking important decisions by diversifying planand performance management system.It is basically the presentation of accounting information in such a manner that it helps informulating policies which has to adopted by management and also on day to day activities.This accounting is done by managerial accountants observe and record the events whichare to be happen in the business and by considering all the needs of the business (Butler andGhosh, 2015).Management accounting extended to three different areas that are:-Strategic management- It is something which helps in planning and implementing the strategies so thatorganisational and individual goals can be achieved. This advances the role of managementaccountant as following its management act a s strategic partner in the organisation.Performance management-In this type of area of management, it guides the managers to measure the performance ofthe organisation and take effective decision making practices.Risk management1

In this category, managers of Unicorn. are required to plan, measure, manage and reportany uncertain risk to protect the organisation from any severe damage and helps in achievementof organisational objective(Caplan,2016). There main objective is looking towards theunforeseen future and making those decisions which will affect the organisational future. Theknowledge of the management accounting can be generated from, various function of theorganisation such as efficient auditing, Informations management, valuation, pricing, logistics,treasury etc.There are different types of accounting system which plays a crucial role in theorganisation for effective and efficient performance of management accounting. Each of these types is designed to provide the particular information based on the needs andrequirements of management, common types of management accounting are :-Cost accounting system-This is the system in which cost allocation or recording of the all the costs incurred in thebusiness so that it helps organisation to us this to improve their management (Christ and Burritt,2015).It is the process of recording, classifying, analysing, summarizing, and allocation of thecost associated and generating different course of action to control the factors.It is required forevery company because manager can control the cost of the product which is essential to providegoods at a reasonable price. It also helps to eliminate the inefficiency cost and wastage ofmaterial that also leads to cost reduction.Advantages1.Adaptability- managers appreciate the cost accounting as it is managed, adapted,interlinked and can be implemented according to the changing need of environment.2. Ability to view data in different ways-it can be considered in three dimension formsthat is accounts, calculations, and reports which ca be manipulated and observed fromdifferent angles.Disadvantages-Complexity- cost accounting is complex in competitively with other accounting. Aconstant adjustment is need to made which make the accounting difficult.Relevance on high skill talent – this accounting can only be performed by the managerswho have high and specialised knowledge in the field of cost accounting.2

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Management Accounting - Unicorn Retail Ltd
|20
|5568
|28

Management Accounting in Company
|15
|5090
|35

Marginal Costing System - Doc
|18
|4512
|40

TASK 11 P1 Introduction to Management Accounting System
|19
|5767
|142

Management Accounting System PDF
|19
|5612
|270

Management Accounting Assignment - Sollatek
|14
|4210
|170