Report on Management Accounting for Company

BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Management accounting and its importance in Unicorn grocery.........................................1
P2. Various methods required for management accounting reports for Unicorn grocery..........3
M1...............................................................................................................................................4
D1................................................................................................................................................4
P3. Cost calculation using technique of cost analysis.................................................................5
TASK 2............................................................................................................................................7
M2...............................................................................................................................................7
TASK 3............................................................................................................................................7
P4 Advantages and disadvantages of different types of planning tools used for budgetary
control.........................................................................................................................................7
M3...............................................................................................................................................9
P5. Adapting management accounting systems in response of financial problems....................9
TASK 4..........................................................................................................................................11
M4.............................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business can be understood as organisational entity involved in the provision of
providing goods and services to consumers. Management of business is important for the
companies growth and attaining customer satisfaction (Amidu, Effah and Abor, 2011). It teaches
organisation about the efficient and effective ways of doing business that includes
communication, effective use of resources and various other things. It is done so as to fulfil the
needs and demands of organisation. There are various functions that are operating in a business
so it is important for the organisation to manage all these by fulfilling all their requirements.
Unicorn Grocery is a medium sized company that is located in Manchester England. It is a
grocery store that is of Co-operative type. It sells food items, household, body care and general
grocery item. It is having turnover of around 7 million pounds. This report showcases that
management accounting is essential for the company. It highlights the appropriate techniques of
doing cost analysis and different types of planning tools for budgetary control. It also showcases
the importance of accounting system to respond to financial problems in the organisational
functionalities and hence lead to sustainable growth of an organisation.
TASK 1
P1. Management accounting and its importance in Unicorn grocery.
Financial accounting is basically a special branch for managing accounts which are
responsible for keeping the records of all the economical transactions of the financial status of
the Unicorn grocery. Management accounting refers combination of accounting, finance and
management with business skills and techniques. It uses information such as revenue, cash flow
and debts so as to produce reports and statistics that helps in making day to day management and
business decisions. It involves both financial and non financial data (Askarany and Yazdifar,
2010).
For this system there is also another type of accounting which is called management
accounting or even managerial computing where there are managers which are required to use
some kind of provisions for analysing the information for basically informing the people who
would be required to take some kind of decisions so they need to be aware of all this information
before they decide that matter. This is basically responsible for helping the management system
by improving their performance and controlling their functions. This type of accounting is
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generally required for providing financial as well as non-financial type of decision making to
give information to the managers (Baldvinsdottir, Mitchell and Nørreklit, 2010).
There is vast difference between financial accounting and management accounting which
can be explained in several ways.
 In financial acc. There would be shareholders, creditors as well as public regulations
which are used for public measures of reporting which is management acc. only
managers in this organisation are allowed and confidentially authorised to account for
information and use them and not any other person.
 Financial field is basically historic in nature while management field consist of
information which is actually looking for forward looking aspects.
 In this company, financial accountancy is cased-based in nature while management
accountancy has information which is in model-based format with the degree of
abstraction for extending support to generic methods of decision making.
 While revenue accounting would be computing some kind of reference for its general
financial account standards, mean while management accounting data is basically
collected by creating some reference to the needs of manager which would be used often
for getting statistics for management system.
There can be different type of management accounting system for this company which
basically helps in carrying out execution of the process of the company (Bodie, 2013). The
various types of system present in the organisation are mentioned below.
Inventory control: This type of stock control can be defined as an activity for checking shop's
stock. This is basically used for management logistics and also for supplying chain management
operations. Here the technological system and technical program software would be required to
manage inventory for providing source to their chain.
Cost accounting: This type of processing is used for collecting, recording, analysing as well as
summarizing course of actions as well as control of costs. Their aim is to advice the management
system for any kind of action which would be most appropriate dependent on its efficiency of
cost and its capability. This accounting gives detailed information for its cost expenditure and
also how the management would be needed to control current operations and plans for future
plans.
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