TASK 11 Management Accounting Systems and Their Importance
15 Pages4766 Words210 Views
Added on 2020-12-09
About This Document
MANAGEMENT ACCOUNTING INTRODUCTION 1 TASK 11 Management Accounting, systems and its importance 1 Explanation regarding the methods and system of management accounting 2 Benefits of management accounting system 3 Management accounting system and its reports are related to organisational processes4 TASK 24 Evaluation of Net profit by the method of absorption and marginal costing of Management accounting 4 Controlling 1: Calculation by using various costing method 4 2: Preparation of profit and loss statement by using techniques 5 3: Preparation of final account after September 6 TASK 37 Describing
TASK 11 Management Accounting Systems and Their Importance
Added on 2020-12-09
BookmarkShareRelated Documents
MANAGEMENT ACCOUNTING
Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 Management Accounting, systems and its importance..........................................................1 Explanation regarding the methods and system of management accounting.........................2 Benefits of management accounting system..........................................................................3 Management accounting system and its reports are related to organisational processes.......4 TASK 2............................................................................................................................................4 Evaluation of Net profit by the method of absorption and marginal costing of Management accounting...............................................................................................................................4 1: Calculation by using various costing method.....................................................................4 2: Preparation of profit and loss statement by using techniques............................................5 3: Preparation of final account after September.....................................................................6 TASK 3............................................................................................................................................7 Describing some of advantages and disadvantages of adapting different types of planning tools........................................................................................................................................7 Analysing various planning tools adapted with the motive of preparing and forecasting the budgets..................................................................................................................................10 Analysation of different budgetary planning tools necessary for solving the financial problem or issues................................................................................................................................11 TASK 4..........................................................................................................................................11 Comparison of Jupiter PLC with another organisation on the ground of settling the issues of financial problem by adapting budgetary planning tools.....................................................11 Evaluatingthecontributionofmanagementaccountingandsysteminachievingof organisation's sustainable success........................................................................................13 CONCLUSION..............................................................................................................................13 REFERENCES..............................................................................................................................14
INTRODUCTION Management accounting refers to the presentation of accounting information in appropriate form that is beneficial in ascertaining and maintaining the proper record of each and every transaction of business entity on accrual basis. It also ensures the managers in performing all relevant functions regarding the business operations as well as the function planning, organising, directing and also in controlling (Eierle and Schultze, 2013). Although the management accountancy pertains the accounting methods, systems and techniques which ensures excellent knowledge and ability that is beneficial for the managersin assisting tasks in order to maximizationof profit and minimization of losses This report pertains the knowledge about management techniques, methods and systems of accountancy which are helpful for the management of Jupiter PLC in performing their management functioning in an appropriate manner which ensures proper maintaining and ascertaining of operational information. In this report various management accounting systems their reports, costing techniques, planning tools and the way in which management accounting helps to resolve financial problems have also been discussed. TASK 1 Management Accounting, systems and its importance Management Accounting includes methods and concepts crucial for effective planning for proper planning for selecting among business actions and for coordinating and controlling the process of evaluation and interpretation of the performances. Beside this the management accounting helps the management in performing the administrative and economic functioning which pertain planning, directing and decision making, it leads to increment in effectiveness of operational activities of business entities like Jupiter PLC. There are several importance of the management accounting and systems. Helpful in planning:It is the essential part of business entity like Jupiter PLC as useful in its management activities which involves forecasting and budgeting for future. management accounting systems ensures contribution to entity's cash forecasting and also for financial planning by facilitating the information about the interest rates, costs and revenues will prevails in future. besides this, the management accounting helps the entity in preparation, monitoring and controlling accordance with agreed policies and procedures. the techniques of management accounting in process of standard costing and budgeting (Granlund and Lukka, 2017). 1
Helpful in Controlling:Management accounting systems are helpful for business entity like Jupiter PLC in process of standard performance and setting the entity's standards in real results like variance if any. it is possible by the technique of Variance analysis. the variations are the material facts for the mangers of the entity as they are responsible for them. responsibility accounting helps in this process. Helpfulin Decision Making:Themanagementaccountingprovidesthe adequate information regarding the business operational activities and it the entity like Jupiter PLC in maintaining the efficiency in decision making and also ensures the management in avoiding the delays in decision making. Different types of management accounting system are as follows: Cost accounting system:It is used by the management of Jupiter PLC in order to determine the cost of all the activities that are performed by the organisation. it guides the managers to set the appropriate cost so that large number of customers get attracted toward the organisation. Price optimisation system:This system is used by the managers of Jupiter PLS to analyse the mind set of customers so that appropriate price can be set for all the products that are offered by the company. This is very beneficial for the company as it can help to determine the actual price which needs to be set for the products. Inventory management system:It is mainly used by the manufacturing companies who want to keep a track record of all the inventory which is involved in the production process. This is used by the managers of Jupiter PLC to keep detailed data of all the inventories so that productivity can be enhanced. This system is very beneficial for the company as it can help to get the exact information of inventory. Job costing system:In Jupiter PLC it is used to analyse the cost which in involved in the different jobs that are performed by the company according to the specification of customers. It is very beneficial for the organisation because it can guide to analyse the exact cost which ic related to various tasks that are performed by the organisation. Explanation regarding the methods and system of management accounting The management accounting involves various functions such as planning, controlling and decision making and for performing all these functions there is the requirement of managerial reports which are prepared with the help of this concept and its planning tools (Mussnig, 2013). 2
End of preview
Want to access all the pages? Upload your documents or become a member.