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Concept of Management Accounting Assignment

   

Added on  2020-07-22

19 Pages6072 Words34 Views
FinanceLeadership ManagementProfessional DevelopmentPolitical Science
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Management Accounting
Concept of Management Accounting Assignment_1

Table of ContentsPROJECT 1......................................................................................................................................3INTRODUCTION...........................................................................................................................3TASK ..............................................................................................................................................31.1 Concept of management accounting and their requirement in organisation....................31.2 Different management accounting reports.......................................................................51.3 Benefits of management accounting systems...................................................................61.4 Integration of management accounting reports with organisational process...................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9Project 2 ........................................................................................................................................10INTRODUCTION.........................................................................................................................10TASK 1..........................................................................................................................................101.1 Application of cost analysis techniques for formulation of income statement..............101.2 Application of management accounting techniques regarding financial reporting .......121.3 Merits and Demerits of Marginal and Absorption costing.............................................12TASK 2..........................................................................................................................................132.1 Advantages and disadvantages of different planning tools used for budgetary control.132.2 Estimation of expenses if change in number of hours....................................................142.3 Preparation of cash budget.............................................................................................14TASK 3..........................................................................................................................................153.1 Application of different management accounting systems to respond financial issues 153.2 Contribution of management accounting to improve financial performance.................163.3 Application of planning tools to reduce financial issues to achieve success.................16CONCLUSION..............................................................................................................................17REFERENCES..............................................................................................................................19.......................................................................................................................................................19
Concept of Management Accounting Assignment_2

PROJECT 1INTRODUCTIONManagement accounting includes different kind of tools and techniques like budgeting,marginal costing, risk analysis, standard costing, value analysis, cost volume profit analysis etc.All such techniques provides statistical and functional information to the executives oforganisation for planning, decision-making and selection of most profitable project whichprovides higher return. Through application of such systems, management of organisationbecome expert in financial reporting and managing working capital requirements to perform dayto day functions. UCK Furniture deals in table and drawer division (Christ and Burritt, 2013). In the present report explain about, essential requirements of different managementaccounting systems and methods which are used by UCK Furniture for reporting. Also,application of accounting systems in organisation and benefits of individual managementaccounting systems and integration of reports with organisational functions.TASK 1.1 Concept of management accounting and their requirement in organisationUCK furniture is manufacturing organisation which deals in two products Table andDrawer. It is understand by the management of organisation that large number of benefits aregathered through implementation of management accounting systems. Accounting officer ofUCK decided to prepare training programmes for their interns which helps them to gatherknowledge about different accounting systems and their important in organisational respect. Concept of management accounting: It is wide concept which includes the provisionsof different costing and managerial techniques. Different tools which are used regardingcollection and interpretation of information are named as responsibility accounting, valueanalysis, marginal costing, standard costing, marginal costing, budgetary control etc. Throughuse of all such tools accounting officer of UCK Furniture gather financial and statisticalinformation which helps in forecasting and preparation of effective strategies. Each and everyaccounting system have their different role and benefits in organisation. It enhance the decisionmaking power of manager which helps in short and long term decision-making. The mainobjectives for which the management of UCK Furniture adopts such different accountingsystems are defined below:
Concept of Management Accounting Assignment_3

Improvement of communication and effective disbursement of roles and responsibilitiesImproved decision-makingHigher coordination among different departmental functionsHelps in evaluation of the effectiveness of strategies and policiesEvaluation and the interpretation of financial statementsContributes in planning and formulation of policiesEssential requirements of different management accounting systemsPresentation of financial position: Application of different accounting systems providesthe data which depicts the financial position of organisation. Collection of such costingand financial data helps in preparation of effective financial reports which improvesdecision making of internal parties (Macintosh and Quattrone, 2010).Allocation of resources: Effective implementation of inventory systems helps inmaintenance of stocks within organisation. EOQ model provides the informationregarding the time period about reordering of their stocks. It provides the opportunity tothe manger of UCK Furniture about effective allocation of resources to differentdepartments for their optimum utilisation. It contributes in accomplishmentorganisational objectives for attainment of long term sustainability.Assessment of risk: Budgetary control in one of the important process which helps inidentification of the future risks which are associated with project. Such earlyidentification of uncertainties helps in preparation of contingency provisions and risk isminimised through effective management.Different types of management accounting systemsJob costing system: It helps in assigning manufacturing cost to each products which areproduced by UCK Furniture. It is considered as one of the important cost controllingmethod. This method helps in tracking of their actual expenses. This method is used onlywhen different types of goods are manufactured by organisation. The procedure which isfollowed during use of this accounting system is mentioned below:- Receiving enquiry: It includes the process of receiving the views of customers about quality,price and time period of completion.- Estimation of price: It can be done on the basis of tastes and preferences of customers.- Order receiving: Orders are placed after assurance of customer about prices.
Concept of Management Accounting Assignment_4

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