Introduction to the Management Accounting System

   

Added on  2020-06-04

15 Pages5016 Words36 Views
MANAGEMENTACCOUNTING
Introduction to the Management Accounting System_1
Table of ContentsFROM: MANAGEMENT ACCOUNTING OFFICER..................................................................1TO,...................................................................................................................................................1GENERAL MANAGER..................................................................................................................1ZYLLA COMPANY.......................................................................................................................1SUB: MANAGEMENT ACCOUNTING SYSTEM .....................................................................1INTORODUCTION........................................................................................................................1TASK 1............................................................................................................................................1P1............................................................................................................................................1P2............................................................................................................................................4M1...........................................................................................................................................5TASK 2............................................................................................................................................6P3............................................................................................................................................6M2:.........................................................................................................................................8D2:..........................................................................................................................................8TASK 3............................................................................................................................................8P4............................................................................................................................................8M3.........................................................................................................................................10D3.........................................................................................................................................10TASK 4..........................................................................................................................................10P5..........................................................................................................................................10M4.........................................................................................................................................12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
Introduction to the Management Accounting System_2
FROM: MANAGEMENT ACCOUNTING OFFICERTO,GENERAL MANAGERZYLLA COMPANYSUB: MANAGEMENT ACCOUNTING SYSTEM INTORODUCTIONManagement accounting is the best tool which is used by each firm for making businessobjectives achievable and obtainable. Management Accountant of Zylla Company uses varioustechniques and concepts of management accounting, to make the accounting data more useful formanagerial decision-making. The technique of management accounting includes ratio analysis,fund flow and cash flow statement, budgeting and forecasting etc. The main intent ofmanagement accounting is to show the accounting information in such a manner as to help themanagement of Zylla Company in planning and controlling the operations of a company’sbusiness in which Zylla Company is dealing with their customers (Renz, 2016). Under thisdescription various management accounting methods are used to make the accounting policiesfor the company much stronger than their competitors who are available in the market. Whileapplying the management accounting methods & techniques in the company, the accountant ofZylla Company need to know various advantages and disadvantages of ManagementAccounting so that the firm can get the sustainability.TASK 1P1Management Accounting is the presentation of accounting information in such a manneras to help management of a company in the making of policy and day-to-day procedures of acompany. It covers all those services which the accountant of the company can assist topmanagement and other departments in the formulation of policy, the control of its execution and1
Introduction to the Management Accounting System_3
the appreciation of its effectiveness (Quinn, 2014). It emphasizes on future because decisions arealways take for future course of action. When this future turns into present, a criticalinvestigation is made and variances are ascertained to make corrective action. For this, budgetarycontrol, standard costing is the methods which highlights the future. The management accountingis useful to improve the efficiency and also helpful to managers of different departments thathow much resources are available to them and according to these available resources they haveto accomplish their assign tasks.The main difference between the Financial Accounting & Management Accounting is thatFinancial Accounting in the sense that all the company transaction and events are expressed interms of money and management accepts them in the form of statements and reports. Management accounting cannot replace financial accounting. It draws out a majorimportant part of the information from the financial accounting and changes the same formanagerial uses. Therefore, both the accounting is complementary to each other (AdvancedManagement Accounting, 2017).The scope of management accounting is most wide because financial accounting, costaccounting and others techniques are used in it. Thus, financial accounting is part of managementaccounting.There are various techniques used in management accounting which are discussed below Cost Accounting: Cost accounting is used to ascertain the cost of a product or service. Inthis accounting, present and past events are used (Parker, 2012). Cost control, costanalysis for decision-making and price determination are also objectives of costaccounting. Under cost accounting various techniques is used to estimate the cost of aparticular product. The techniques are standard costing, marginal costing, budgetarycontrol, etc. Standard Costing is an important technique for cost control, which is onemain objective of management accounting. This involves the technique of determinationof standard costs, their comparison with actual cost and the analysis of the differences i.e.variances to their causes and points of incidence.Marginal costing is a managerial technique that considers only variable cost in theadditional introduction of output decisions. Marginal costing is helpful for management ofprofitability of different products, departments and divisions of a company.2
Introduction to the Management Accounting System_4

End of preview

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

Related Documents
Management Accounting | Management Accounting Systems
|12
|3727
|66

Management Accounting Assignment(MA)
|17
|4695
|51

Management Accounting of Zylla Company - Report
|15
|5105
|32

Various Techniques for Management Accounting Reporting
|16
|5019
|385

Assignment on Minimising Wastage and Expansion of Business
|17
|5266
|38

Management Accounting Assignment - Zylla company
|15
|5245
|237