Comparing Management Accounting Systems for Capital Joinery Ltd.

The assignment compares the management accounting systems of Capital Joinery Ltd. and Financial Accounting Ltd., highlighting the importance of adopting various tools such as marginal costing technique, budgetary control techniques, decision making accounting process, and sustainable organization for the management system. The document also emphasizes the need to eliminate risk factors, reduce complexity, and produce effective statements about salary and procurement decisions.

LO4: Compare the organization for management accounting system:
P5: Using Management accounting tools:
Capitary joinery ltd. should adopt various tools for accomplishing the organization requirement with
comparing the operational management policy of financial accounting Ltd. According to the management
accounting tools it is very important to incorporate financial accounting information and cost accounting
information. In this report Financial accounting Ltd. company is being considered to understand the
drawback of Capitary Joinery ltd. First thing is to understand the ration analysis of the Financial
accounting Ltd. so that Capital joiner ltd. can estimate the necessary equipment for the organization.
Second thing is Capitary Joinery ltd. Company must provides a comparative statements about the trend,
graph and diagram with respect to Financial Accounting ltd. Apart from those things, it is very important
to understand the cash flow analysis and fund flow analysis (Doktoralina and Apollo, 2019). It can
generate a huge economic revenue for the Capitary Joinery Ltd. Like Financial accounting ltd., capital
employed technique must be adopted for getting huge repay from the economic revenue of the market.
Comparative analysis between Capitary Joinery ltd, and Financial accounting ltd provides a compact
information about the management accounting tool process.
Marginal costing technique should be introduced here for fixing the selling price with undertaking the
best sell mix process. Marginal costing also provides adequate information about the purchasing decision,
rejection order coming out from the foreign company. It is highly depends on the fixed cost, variable cost
and contribution in favor of the organizational growth. Capitary Joinery ltd. Company must adopt the
following idea for incrementing the buying behavior of the foreign companies (Le and Nguyen, 2019).
Budgetary control techniques are required to incorporate here for understanding the requirement of the
future needs. It can gives a proper estimation and arrangement for fulfilling all requirements to grab a
huge number of order. Therefore a small size enterprise like Financial accounting Ltd. should incorporate
above plans to resolve the future problems and Marginal costing process into the organization.
Decision making accounting process is determined as one of the important key factor to make a profitable
growth of the business. Alternative selection can creates a negative and positive impact on the
organizational growth. Complexity of the business should be solved by reducing the risk factor of the
accounting management process. Financial accounting ltd. company should incorporate the idea of
decision making process to make a constant finance performance with setting the rank for the
organization (Cescon et al. 2019).

M4: Sustainable organization for the management system:
As a trainee accountant management, the first and foremost thing is to eliminate the risk factor of the
Financial accounting Ltd with integrating the idea of management accounting system and financial
statement. Strategic decision making in the accounting system with producing a organize supply chain
management policy and procurement decision creates a huge impact to execute the business in a
sustainable way. It can reduce the risk factor of the medium size enterprise and produce effective
statement about the salary of employees. Not only that but also designated budge should be introduced for
individual position of the accounting systems.
Fianace problem: Rapid record of the purchasing product, expenditure of the product can reduce the issue
of finance problem in an particular organization. Therefore Finance accounting ltd. should incorporate the
basic principle of accounting to reduce risk of the organization growth. Expenditure of the product for
any account’s organization should be equal with revenue of the company. It can creates a sustainable
platform for the small size firm (Alkhatib et al. 2019).
Conclusion:
Accounting and management system is playing a vital role to create a constant market for any accounting
firms. It has to be concluded that proper understanding of the accounting process and applied technique
for the marginal and absorption costs can distinguished two company’s economical structure. A proper
management tools were recognized here for creating a sustainable platform for the Finance management
ltd. Capitary joinery ltd. was also being satisfied with incorporating such ideas.

Reference:
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