HNBS 305 Management Accounting

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
TASK1 ......................................................................................................................................1
P1 Explain management accounting and give the essential requirements of different types of
management accounting systems.................................................................................................1
P2 Explain different methods used for management accounting reporting.................................2
TASK2 ............................................................................................................................................4
P3 Calculate costs using appropriate techniques of cost analysis to prepare an income
statement using marginal and absorption costs. ..........................................................................4
PART 2..........................................................................................................................................10
TASK 3 .........................................................................................................................................10
P4 Explain the advantages and disadvantages of different types of planning tools used for
budgetary control.......................................................................................................................10
TASK4 ..........................................................................................................................................13
P5 Compare how organizations are adapting management accounting systems to respond to
financial problems......................................................................................................................13
CONCLUSION .............................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Management accounting refers to the function in a business organisation which is related
to managing various accounting information and helps all the stakeholders of the organisation to
effectively identify the financial position of various accounts in the business (Renz, 2016).
When taking the following report into context UCK Furnitures which is a company that produces
product such as desk is taken into consideration.
The report discusses about the requirements of management accounting for a business
and different types of management accounting systems. Various methods used for reporting of
management accounting is also discussed in this report along with appropriate techniques for
cost and analysis. A number of advantages and disadvantages of different budgetary control tools
are also discussed in the report along with comparison between various management accounting
systems which are adopted by an organisation to solve their accounting problems.
PART 1
TASK1
P1 Explain management accounting and give the essential requirements of different types of
management accounting systems
Management accounting is a process in an organisation which relates to valuation of
various accounts and determination of them in a financial term in order to understand financial
position of company and various information about its management of finance. When taking
organisation into context management accounting is in accounting which provides the
organisation with the particular process in which identification of the position of company can be
done in order to achieve its goals and objectives. The following system is associated with the
current financial position of the company and analysis of financial accounting system which
provides a standard in order to determine position of company in competitive environment
(Guinea, 2016). Various systems which are used in management accounting that are elaborated
for UCK Furnitures:
Price optimisation: Prize optimisation is an effective tool in management accounting
which is used by businesses in order to identify the response of their customers as per the
services which is provided by organisation to them (Cooper, Ezzamel and Qu, 2017). It is
necessary for UCK Furnitures in order to deter mine what can be the actual cost of their
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