Report on Management Accounting - Doc

17 Pages5725 Words171 Views

Added on 2020-01-23

Report on Management Accounting - Doc

Added on 2020-01-23

BookmarkRelated Documents

ManagementAccounting

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting and its types for Agmet:...........................................................1P2 Explanation over the different methods used for management accounting reporting.......3M1 Benefits of management accounting systems and their application within Agmet........4D1 Management accounting systems and MA reporting is integrated within organisationalprocesses:................................................................................................................................5TASK 2............................................................................................................................................6P3,M2 & D2 Calculation of cost using techniques of absorption and marginal costing........6TASK 3............................................................................................................................................8P4 Advantages and disadvantages of different types of planning tools:...............................8M3 Different planning tools and their application for preparing and forecasting budgets:.10D3 Planning tools used for responding financial problems:...............................................11TASK 4..........................................................................................................................................11P5 Comparison how organisations are adapting management accounting systems to respond tofinancial problems................................................................................................................11M4 To analyse financial problems, MA can lead to organisations for sustainable success:12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13

INTRODUCTIONManagement accounting can be specified as the method that has the quality of bothfinancial system and managerial principle therefore this can be said that these principles ofmanagement accounting can be used by the management for decision making process. Thisreport contains various concepts about the management accounting and its associated techniques.For instance forecasting and budgeting techniques can be used for making any plan regardingany future projects. Management can estimate the total expenditure which is to be made on thatspecific project further they can also ascertain the revenue that can be earned through this project(Baldvinsdottir Mitchell and Nørreklit, 2010). This report is based on the case study of Agmetwhich is a small business entity which is employing less than 50 employees and having anannual net turnover of less than £500,000. This means that in this file it has been mentioned thathow small business enterprises having less resources i.e. financial and non financial both, canachieve their predetermined criteria and goals. Other than this, in this report there have beenmentioned several methods of management accounting which can be used by the cited entity forthe management of their sources in an effective way so that the owners and the managerialpersonnels can manage and exploit the available opportunities. TASK 1P1 Management accounting and its types for Agmet:ReportTo General manager,This is to inform you that company is using old management accounting techniques which are stale now. So, there is a need to replace them all in order to get the competitive advantages in aneffective manner. However, this also been cited that advantages and limitations of MA system going to be focused over here. A variety of management accounting principles are present which shall be utilised by an entity for the management and control of its financial and non financial sources so that these sources can yield positive result in reference of its operations(Bennett, Schaltegger and Zvezdov, 2013). This can be classified as the bond of two subjects from different fields out of which one is financial accounting and other one is management and its principles to manage the work of organisation or it can be said that throughthe information from financial accounting and its data managerial personnels can optimize such 1

data in the process of decision making(Busco and Scapens, 2011). As through using such techniques which are supported through some reliable figures then it gets easier for the management to frame such strategies which can generate better and improved results in comparison with the techniques which different from the methods of management accounting. Their are different accounting techniques which can be used by the organisation for carrying on their organisational activities in a way in which they can utilize their sources for the production of accurate outcomes as per the desire of their customers and as per the needs of their organisational structure (Christ and Burritt, 2013). There are various essential requirements in reference of management accounting. Such essential requirements provide more benefits to the entity as through this the credibility of information ascertained can be utilized with assurance asthey are credible and reliable. Hence for making financial reporting more appropriate financial accounting follows the principles of International financial reporting frame work and management accounting requires to fulfil the requirements which are mentioned below:Cost Accounting: It can be termed as a control tool for the changes that are made in theaccounting system and control. Measurement of any quantity or price if changes then through this technique management can cop up with the such changes. Management needs to face the situations where there is less resources available and as Agmet is a small business enterprise hence it requires to maintain its limited financial and non financial sources in a way so that they can generate the best revenue which is desired byenterprise and the operations which is carried out by it.Job costing system: This is the MA system which is used by the firm in order to make their business operations so effective. With the help of this, management accountant can make lower the cost of product by effectively applying the cost cost accounting technique. Inventory management system: this is the system which is used by the firm in order tocontrol the inventory and other operational expenses so that the firm could attain business objectives. Price optimization system: Under this system, company's management accountant fix the standard for a product so that the potential consumer is able to buy the product in aneffective manner. 2

End of preview

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

Management Accounting Report - doc

|15

|3797

|43

Management Accounting - Case Study of Agmet

|20

|6546

|197

Organisational Structure of Agmet : Case Study

|15

|4670

|153

Management Accounting System & Techniques

|12

|3434

|110

Management Accounting System of Agmet Company : Assignment

|18

|5183

|402

Management Accounting Systems & Techniques

|20

|5703

|222

Report on Management Accounting - Doc