logo

Management Accounting : Grange Construction Materials

17 Pages4613 Words15 Views
   

Added on  2021-02-19

Management Accounting : Grange Construction Materials

   Added on 2021-02-19

ShareRelated Documents
Management Accounting
Management Accounting : Grange Construction Materials_1
Table of ContentsINTRODUCTION ..........................................................................................................................1TASK 1............................................................................................................................................1P1 Understandingofmanagement accounting systems ..............................................................................................1P2 Different kind of management accounting report..................................................................4TASK 2............................................................................................................................................5P3 Costing Techniques to prepare income statements................................................................5TASK 3..........................................................................................................................................10P4 Advantages and disadvantages of different types of planning tools used for budgetarycontrol.......................................................................................................................................10TASK 4..........................................................................................................................................12P5 Comparison of business entities applying management accounting systems for respondingdifferent financial problems.....................................................................................................12CONCLUSION..............................................................................................................................14REFERENCES................................................................................................................................1
Management Accounting : Grange Construction Materials_2
INTRODUCTION In today,s economy there is a proper need of management in every sectors so thatavailable resources can be fully utilised and it easy for company to attain the desired results. Inbusiness case, the concept related with identifying, classifying, grouping, reporting, analysingand evaluating valuable financial information that support inner manager to make authenticdecision (Management Accounting, 2019). Aon consulting group one of the leading financialcompany in UK that provides various consultancy services to its clients those have mainoperation linked with construction, hospitality and retail industry. To better gain theunderstanding of management accounting, Grange Construction Materials is selected. Thecompany deals in construction company and supply different kind of construction material tolarge number of customer in UK. In this report, several management accounting system with their importance and use inresponding to various financial problems, different report are discussed. In addition, valuablecosting method like absorption and marginal methods are used to prepare annual statements. TASK 1P1 Understanding of management accounting systems Management accounting is related with systematic combination of valuable services thatare helpful in establishing a detail structure which provide authentic information about completeperformance of internal operation so that effective decision are made for future growth. Ingeneral the procedure which provides financial data to managers within company in order tomake modification or improvement is know as management accounting. Origin, role and principle of management accounting. The concept of management accounting was originated in 1960s that mainly focus oncost accounting that help the management to better analyse the overall performance and makesuitable changes (Collis and Hussey, 2017). There are some major principle that ease the processof collecting information that are discussed below: Influence: It enables to generate information that is influential to manager so they caneasily makes changes.Relevance: It must be understood that all the facts and figures must be related to eachother so that better decision are made.1
Management Accounting : Grange Construction Materials_3
Trust: The main motive is related with developing trust among manager and employees. The main role of management accounting within company is to run tasks which help toensure financial aspects, handle all financial issues so that there can be better formulation ofstrategy which support in growth and development. Management AccountingFinancial Accounting The major objective of managementaccounting to ascertain beneficial informationfor internal managerial that can be used tomake vital decision for growth and success. Financial accounting is refereed to the processof preparing useful report that disclose thefinancial performance of company to internaland external parties. Company are free to choose the option ofmanagement accounting. Companies are needed to flow the concept offinancial reporting that ease in better analysingof total financial status and position.Different procedure and system related withmanagement accounting importance to bothaspects that are qualitative and quantitative. The process of financial accounting onlyincludes quantitative aspects. In business scenario, the different kind of management accounting system are used bymanager of company in order to run and manage different useful operation and makes them runprofitable. There are various system each one have its own importance such as cost system helpto reduce cost and unprofitable activities, price system support to fix price etc. Some of theuseful system used by manager of Grange construction material are discussed below: Inventory management system: This is related with maintaining a proper record of totalinventory held by company during entire production process (Demski, 2013). Manager ofrespective company use this system to keep proper record of inward and outward flow ofinventory while providing useful services to desired customer group. It also provide strength tosupply chain as authentic report enables manager company to fulfil the demand of customer bydelivering required finished goods. Cost accounting system: This system is related with managing and maintain cost relatedwith different operation within company. Manager of Grange construction material use thissystem to determine the total cost incurred in different operation, maintain stock level andproduction process. Thus it support in identifying the activities due to which there is huge2
Management Accounting : Grange Construction Materials_4

End of preview

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

Related Documents
Management Accounting Reporting Methods
|16
|4318
|36

Management Accounting - Brightstar
|19
|3705
|28

Management Accounting Systems and Costing Techniques
|15
|3332
|97

Managing Accounting in Response to Overcoming Financial Issues
|15
|4749
|468

Management Accounting Assignment | Bright star
|19
|5431
|62

Management Accounting Case Studies and Accounting System - Assignment
|24
|5930
|86