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Introduction to Management Accounting

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Added on  2020-07-22

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10 CONCLUSION: 11 REFERENCES 12 INTRODUCTION Management accounting is the most crucial aspects which is used in the business in order to attain pre-set objectives of the organisation. The management accountant is the key person in the organisation which used management accounting practices in order to get competitive advantages over the firm. However, the key task of MA is for making plans and renders decisions supports for administration of the firm for sound running and also crucial for decision making processes to making procedures towards achieving the performance

Introduction to Management Accounting

   Added on 2020-07-22

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MANAGEMENTACCOUNITNG
Introduction to Management Accounting_1
Table of ContentsINTRODUCTION...........................................................................................................................1Section 1. .........................................................................................................................................11. ............................................................................................................................................12. ............................................................................................................................................23..............................................................................................................................................24........................................................................................................................................................3a).............................................................................................................................................3b).............................................................................................................................................7c) ............................................................................................................................................7Section 2...........................................................................................................................................8Part A......................................................................................................................................8Part B....................................................................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
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INTRODUCTIONManagement accounting is the most crucial aspects which is used in the business in orderto attain pre-set objectives of the organisation. Firms are trying to attain their objectives byutilising firms' resources (Lavia López and Hiebl,, 2014). The management accountant is the keyperson in the organisation which used management accounting practices in order to getcompetitive advantages over the firm. With the help of such practices, company could lower theprice of the products by eliminating the waste price. There are so many MA tools which can beused in the company for achieving the firm objectives. MA practices helps the company to makean effective strategy for viability of the firm. Section 1. 1. Management accounting is the tool by which an accurate information can be made whichcan be useful throughout the firm in order to attain the firm's objectives and goals. MA reportsare made by the management accountants which is specially framed for the firm internally. Suchkinds of MA reports is used for making trend analysis, variance analysis and much more whichcan be used for achieving the objectives (Macintosh. and Quattrone, , 2010). Managementaccounting practices are crucial for attaining the firm's objectives. MA reports helps the keyplayers in the firm in the following areas: Strategic management: Effective strategies are made so that the sound decisions could beframe, and company is able to get its pre-set objectives. Performance management: MA assist the firm to know the performance of the company andalso helps to design their policies accordingly. Risk management: MA assists the firm to make the strategies in a way where it could eliminateand manage the risk. The management accountant are the key person who could eliminate therisk effectively. However, the key task of MA is for making plans and renders decisions supports foradministration of the firm for sound running and also crucial for decision making processes tomaking procedures towards achieving the performance of the firm. 1
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2. There are various management accounting system which helps the firm for getting competitiveadvantages over the firm. Some of them are as follows: Cost accounting system: This is the framework which is used by the managementaccountants for lowering the cost of the production which could lead to get the optimum benefitsover the periods. This system also helps the top level executives for making the strategies thatcould lead to get the pre-set objectives (Banerjee,, 2010.). This technique is used in the firm inorder to forecast the price of the product which will help out to frame the pricing policies for thefirm. Prediction of the cost of the product is the most crucial task for management accountant asthis requires so much attention. Inventory management system: Inventory management framework is the process bywhich stock of the company can be tracked, ordered and delivers. This is mainly done in themanufacturing sector which is implemented in order to make a work order and variousproduction related documents.Job costing system: This is the main system which is used for assigning productionrelated costs for a batches of products. Normally, this system is implemented only when goodsproduced are entirely different from each other. As, there is a crucial variation within the productproduced, this system frame job cost records for each job. The job cost record will display thedirect materials, direct labour and overheads costs related to the production. 3.Cost accounting system's benefits: Cost accounting system is useful for making thebusiness sustainable and also aides the firm for making the decisions. As, this will also reflectsthe accuracy in the financial reports of the firm so that various stakeholders are able to take theirindependent decisions in a most effective manner (Nandan, 2010). Now, this is observed that thea sound cost accounting system helps the firm to make their business a sound command over itsspendings and also assists to secure economy under the production of the goods.Inventory management system's benefits: In every business, inventory control is themost crucial task which is used for attaining the company's objectives. As, this will help out thefirm to attain the sustainability. With the help of good inventory management skills, company isable to utilise it resources effectively, as this will also assists the firm enhance the accuracy ofthe firm. This will also able to stop product deficiencies and enables the firm to keep enough2
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