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The Concept of Management Accounting - Assignment

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Added on  2020-06-04

The Concept of Management Accounting - Assignment

   Added on 2020-06-04

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The Concept of Management Accounting - Assignment_1
Table of ContentsINTRODUCTION...........................................................................................................................2TASK 1............................................................................................................................................2P 1 Management accounting system...........................................................................................2M1 Benefits of management accounting system........................................................................4P2 Different methods used for management accounting reporting.............................................5TASK 2............................................................................................................................................6P3 Calculation of costs by utilising appropriate techniques of cost analysis .............................6M2 Applying a different accounting technique and developing a financial report for Nerocompany......................................................................................................................................8TASK 3..........................................................................................................................................10P 4 Advantages and disadvantages of various types of planning tool which can be utilised forbudgetary control......................................................................................................................10M3 Analysing the utilisation of several planning tool and its application for developing aswell as forecasting budget.........................................................................................................11TASK 4..........................................................................................................................................12P5 Evaluating the way enterprise are adapting management accounting system for resolvingfinancial problems.....................................................................................................................12M 4 Analysing the way to respond to financial problems .......................................................13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................151
The Concept of Management Accounting - Assignment_2
INTRODUCTIONManagement accounting is defined as the procedure of recording as well as maintainingfinancial data. It is the important activity that is performed by management department whichassist manager in making appropriate decision. Management accounts assist employees and otherstakeholders in identifying the position of company in market. It also involves formulation ofplans , policies,designing of procedures in order to support firm in improving businessperformance. The study of management accounting is important as it allows person to develop theunderstanding about the several concepts in management accounting. This activity will alsoenable them manager in achieving expertise in preparing as well as reporting of financial data.Management accounting is important as,it helps business entity in controlling the cost ofproduction and other expenses which might have adverse effect on the profitability of company.The purpose of the report is to demonstrate the understanding of management accountingsystem in context of Nero Ltd. It also has focus on the identifying the range of managementaccounting techniques and analysing the application of planning tool in managementaccounting.TASK 1P 1 Management accounting systemManagement account is refers to as the procedure of recognising, evaluating, analysing,interpreting as well as communicating the objectives of organisation. It includes the presentationof financial information in appropriate format. This accounting system support manager informulation of appropriate strategies, plans and policies for organisation. It assists internal aswell as external stakeholder in identifying the position of company and planning appropriatetactics for improving the same. It also supports manager in identifying the appropriate methodsfor managing several business activities and also assist in allocation of funds in systematic aswell as effective manner. Budgeting procedure is followed by manager in Nero Limited companyfor managing liquidity of funds. This process helping organisation in controlling as well asmanaging cash flows (Brook, 2012) Different types of management accounting system and their use2
The Concept of Management Accounting - Assignment_3
Cost accounting system- This system support manager in determining the cost of product on thebasis of which the profitability of firm can be estimated. It is required for controlling cost whichmight have adverse effect on the profit margin. This accounting system assist business entity inidentifying the unnecessary cost and help manager in recognising the suitable strategies or waysfor reducing additional expenses. Cost accounting system can be categorised into process costingand order costing. The requirements of Cost accounting system are:This accounting system are required participation as well as cooperation betweenvarious departments. As this will assist manager in determining the exact cost whichmay occur in production of specific product.It is required by manager in Nero Ltd. to create flexible, easy to implement andunderstandable management system. When creating the cost accounting managementaccounting system , manager or accountant in Nero limited company should ensure thatcost accounting system is effective and is catering the need as well as demands ofdifferent users and also fulfilling requirement by several business operations.Inventory management system-This type of management accounting is beneficial in order tosupervise and manage stock. The business procedure or operations of Nero limited companycould be integrated with inventory management system in order to increase efficiency andeffectiveness of inventory within an enterprise. Inventory management system helps businessentity in ensuring proper utilisation of resources.It is required by manager in cited venture to design replenishing strategy. As this activitywill help manager in planning of cost requirement by operations in advance.Inventory management system aid firm in achieving the objective of cost reduction.Job costing system- This system involves assigning of manufacturing cost to each and everytask in order to keep record of expenses. Job costing system is utilised by Nero limited company In case of production or manufacturing of identical goods. This process include:Receiving enquiry-consumer have much focus on quality of raw materiel used in the product,price of specific item and time taken by employees for processing the order.Determination of price- The price is determined by manager by considering the various factorssuch as quality of good, value delivered, customer need and preference (Easterday and Eaton,2012)3
The Concept of Management Accounting - Assignment_4

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