Management Accounting and its Systems

Management Accounting

Contents
Contents...........................................................................................................................................3
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Interpretation of management accounting and its systems.....................................................1
P2 Techniqoues of managerial accounting reporting..................................................................1
M1 Benefits of management accounting system.........................................................................1
TASK 2............................................................................................................................................1
P3 Management accounting techniques.......................................................................................1
M2 Application of management accounting technique and procedure of financial reporting....1
D2 Procedure of financial report and interpretation of its benefits.............................................1
TASK 3............................................................................................................................................1
P4 Explanation of advantage and disadvantage of planning tools..............................................1
M3Using of planning tools for forecasting..................................................................................1
TASK 4............................................................................................................................................1
P5 Uses of managerial accounting system to solve financial problem........................................1
M4 Explanation of how management accounting can lead organization success by resolve
financial problem.........................................................................................................................1
D3Explantion of uses of planning tools to solve financial problem............................................1
CONCLUSION................................................................................................................................1

REFRENCES...................................................................................................................................2
INTRODUCTION
Management accounting is essential part of the functional managerial process. It is a
framework through which business organization collated record, communicate and
interpreted accounting for taking mandatory decision regarding operating and future
activities of the business. In order to understand the concept of management accounting SPA
URBAN OASIS has been taken. It is a medium size organization which deals in hospitality
sector. It is situated within Hilton Hotel of Manchester. SPA URBAN OASIS provides
beauty, wellbeing, relaxing service lash skincare, s to their cutover. The organization
provides various beauty product which includes, Sothy skincare, s, eye lashes, remover and
other beauty product to their customers. In this report various management accounting
system has been described clearly with their importance in taking decision regarding
operation activities. This report also consider, managerial reports which help in
reorganization of performance of organization as well as it is consider how manager apply
tools and technique of management accounting in order to identify man causes of issue
arises related to financial problem and preparation of strategies to Sault out these problems.
TASK 1
P1 Interpretation of management accounting and its systems
Management accounting: It is a systematic process which is applied by organization to
increasing their efficiency as well as utilized the professional knowledge in order to make
polices and taking decision regarding future activities through which organization will be
able to achieve their goal. Management accounting also popular as he term managerial
accounting which directly means a process which use management financial and principle
in order to collect, recognize and interpret accounting information in front of internal
department of the organization (Messner, 2016 ). Different business communities use these
tools for achieving their different objective and solving out their problem. Manager of SPA
URBAN OASIS will be used these tools. They used various type of management
accounting system which describes below:

Price management system: This system has been applied in business organization to determine
price of each product and service they provide to their customers. It will help in earning profit as
base of the revenue is totally depend on the price
policy a manager decide to their services and products. It includes various types of pricing
strategies , price penetration, discount , price skimming , cost pricing all these strategies used by
management in order to determine price. Manager of Job process system will used price
penetration and skimming strategies as they deals with providing various services to their client
and each customer’s needs and different demand thus order to provide them profit and they
decide to choose price penetration strategy (Vosselman, 2014).
 Inventory management system: This system of management accounting used
various inventory mechanism technique though which manager can easily identify
current future and past record of inventory. On the basis of these data managerial
accounting reports are prepared which is the basis of performance analysis.
Manager of Job process system can be used ABC JIT analysis technique EOQ, in
order to identify maximum, minimum level of inventory system through which
they can formulate profit and control wastage of beauty product and services.
 Job process system: In this method of management accounting , each process of
operation activity are used to calculate . Job process costing system consider as
system through which management are able to reorganization the cost of each
activity incurred management procedure. It is one of the most useful system .
Manager of SPA URBAN OASIS Job process used this system to calculate cost of
each process of their services in order to achieve goal.
 Cost management system: In this system various types of cost mechanism are
applied which will help in utilized cost of organization. Standard, marginal, job,
and process costing are part of cost management system. Business organization
decide policies according to the availability of resource and objective of their
organization Manager of Job process system will be able to set up standard cost
and job cost management system in order to calculate their cost of manufacturing
and services provided to their client . This system also used all to formulate
strategies to control of cost.
 Principles of management accounting