Management Accounting - Unicorn Grocery

Added on - 21 Jul 2020

  • 16

    pages

  • 5375

    words

  • 6

    views

  • 0

    downloads

Showing pages 1 to 4 of 16 pages
MANAGEMENT ACCOUNTING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Explaining management accounting and its different types.............................................1P2. Various methods used for making management accounting report.................................3TASK 2............................................................................................................................................5P3. Cost analysis techniques...................................................................................................5TASK 3............................................................................................................................................8P4. Merits and demerits of various types of planning tools...................................................8TASK 4..........................................................................................................................................12P5. Comparing the ways in which firm responds to financial problem by managementaccounting.............................................................................................................................12CONCLUSION..............................................................................................................................13REFERENCES................................................................................................................................1
INTRODUCTIONManagement Accounting can be defined as a process of examining operations and costsrelated to business and prepare financial records, accounts and reports that further assist managerin making strategic decision in order to achieve company's goals and objectives effectively(Management accounting, 2017). It is also known as the cost or managerial accounting . It refersto the act of analysing and interpreting costing and financial data into valuable information forofficers and management within business enterprise. With the help of this, managers can timelyprepare financial report on weekly or monthly basis that help them in making day to daydecisions effectively. It provides information related to firm's performance and figured futurerevenues or cost. Basically, it records activities that are beneficial for the internal use ofcompany in order to improve productivity and efficiency of business concern. In the givenreport, chosen organisation is Unicorn Grocery which is headquartered in Chorlton, England.Company primarily deals in selling fresh, organic and processed drink and food. They also sellhousehold, general grocery and body care products. This reports mainly covers different typesand methods of management accounting system, techniques of cost analysis and advantages anddisadvantages of planning tools.TASK 1P1. Explaining management accounting and its different typesFrom: Management Accounting OfficerTo: General Manager of Unicorn GrocerySubject: Management Accounting ReportAccording to the Institute of Management Accounts “The term management accountingnormally involves planning and controlling management system, giving expertise in financialaccounting or reporting, assisting administrator in implementing and formulating firm'sstrategy. Management accounting refers to the process of making financial reports or accountsthat gives timely and accurate information to the manager which further assist them in makingstrategic business decisions respectively. With the help of this accounting, internal audience ofcompany can prepare financial document on weekly and monthly basis which depicts the actualposition of business concern in marketplace. Managers often use the accounting information inorder to enhance overall efficiency and productivity. These statements normally include cash1
sales, revenue generated, inventory level, amount receivable and payable, etc.(Baldvinsdottir,Mitchell and Nørreklit, 2010).Basically, it thoroughly looks at the activities or events that takeplace within and around an organization in regards to the company needs. The concept ofmanagement accounting is entirely from financial accounting. Financial provide information tostakeholders of the company whereas Management Accounting assist the manager informulating effective decision and strategies concerned with business objective(Contrafattoand Burns, 2013).. The role of management accounting in Unicorn Grocery are as follows:It assist the manager to forecast future trends of business.Help in buy or make decision as managers effectively make decision at both strategicand operational level.It mainly deals with designing of trend charts and budgets that helps the manager to takedecision concerned with allocation of resources and money.With the help of various management analytical techniques, manager can deal with bothpositive & negative variance in an effective manner.It also assist in examining the rate of return. Suppose the company is having twoinvestment opportunities and their manager is confused in order to chose the mostprofitable one. With the help of this managers can take constructive decision regardingchoosing the most appropriate and profitable one.Following are the types of various management accounting used by Unicorn Grocery in order tocarry out business operation successfully are as follows:1. Inventory Management System: This technique is mainly used by the business enterprise soto determine the stock value in an effective manner. Basically it deals with raw material, labour,overhead cost and finished goods related with production activity. Basically it's an ongoingprocess that deals with movement of factor or stock until the goods are ready and serve it toend-customer. Companies manage their stock level on daily basis which makes easier for themto avoid the situation of inventory turnover. It is a part of supply chain management that coverseach any every aspect from the time of production till its final production.It is essential foreach and every company to manage their stock level in an effective manner. This accountingsystem is essential for organisation so that they produce according to the demand and availableinventory.2. Job-Order Costing: This accounting system is necessary for every business concern so that2
desklib-logo
You’re reading a preview
card-image

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Download This Document