logo

Sample Management Accounting - Assignment

   

Added on  2020-12-30

15 Pages3399 Words455 Views
Managementaccounting

Table of Content

INTRODUCTIONManagement accounting is considered as an important part of an organisationwhich drives them to make corrective actions and suitable plans on the basis ofinformation available in the financial statement of company such as P/L account, Cashflow statement, Balance sheet etc. It includes both monetary as well as non-monetarytransactions which are properly analysing and evaluating for the purpose of making aneffective decisions. The present report is based on KEF Limited which is engaged inmanufacturing sector. The report includes the discussion of concept of managementaccounting along with its different systems in context of achieving organisational goalsand objectives. In addition with this, costing methods, budgetary control tools, use ofmanagement accounting systems in resolving financial issues are properly discussedunder this report.TASK 1Management accounting and its system along with their requirement in an organisationManagement accounting is the process of analysing the financial records of anorganisation in order to identify the actual financial position of company. It enableaccounting manager to make an effective decision and plans for the purpose ofproviding beneficial outcome to company. In the context of KEF Limited, there arevarious accounting systems which can be used by the management in order to retaintheir financial and market stability for longer duration:Price optimisation system: It is the system which provide relevant informationto the management about the actual perception of their targeted and loyal customerstowards their current pricing strategies. It makes easy for the management to frame aneffective pricing policy which can satisfy both the company's and customersexpectations (Arnaboldi, Lapsley and Steccolini, 2015). Using such system by KEFLimited help in fixing right price of the product and services which easily motivates thecustomers to shift their buying behaviour towards their company instead of rivalscompany. It indirectly makes positive impact on the existing customer base of anorganisation.1

Inventory accounting system- It is a system which manages and analyse thecurrent inventory level of an organisation which includes raw material, opening andclosing stock. It is essential for KEF Limited to use such system in order to maintainavailability of stock in their warehouses at the time when high demand of their productsand services occurs in the market. It maximises the brand image of company incustomer's mind which directly makes positive impact on the net profitability of company(Management accounting and its importance, 2019).Cost accounting system- It is a system which assist manager to analyse thetotal cost invested in execution of production and other business activities. It help inidentifying the cost allotted to specific product which in result facilitate in makingdecision that which product who provides maximum amount in return should bemanufactured more or less. In the context of KEF Limited., using such system help incomputing overall invested amount in business activities so as to bring out maximumamount in return (Bromwich, and Scapens, 2016). Different methods for management accounting reporting:Management accounting reports may be defined as a document which containsthe details about the transactions made by the business organisation on daily basis. Itassist management in identifying actual financial position of company which drives tomake an effective strategies for the betterment of an organisation. These managementaccounting reports includes:Budget report- It is a report which contains the details about the costinvested in the future business activities after determining the current profitability ofcompany. For this, the manager forecasted the business activities through analysingprevious year expenditures along with their return. In the context of KEF Limited,preparing such report facilitate company in minimising their business cost by utilisingcost in optimum manner.Inventory report- It is a document which provides the details about the currentlevel of inventory the company have at present to meet the needs and requirements oftheir targeted and loyal customers. Preparing such report by KEF Limited companyenable their manager to maintain level of inventory by ordering requires stock from2

End of preview

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

Related Documents
PDF Management Accounting Is Crucial Part Of Accounting System
|17
|3077
|30

Management Accounting: Systems, Reporting, and Cost Analysis
|13
|3994
|42

Management Accounting - Sample Assignment
|15
|3025
|26

Management Accounting and its Role in Organizational Processes
|20
|4140
|100

Concept of Management Accounting - Assignment
|16
|3733
|71

Management Accounting System and Techniques for Effective Decision Making
|14
|3341
|95