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Management Accounting - Assignment Sample

   

Added on  2021-02-20

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Finance
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Management Accounting
Management Accounting - Assignment Sample_1

Table of ContentsINTRODUCTION...........................................................................................................................3LO 1.................................................................................................................................................3P1 Management accounting and their requirement.....................................................................3P2 Various methods for report the management accounting......................................................4LO 2.................................................................................................................................................5P3 Using marginal and absorption cost for income statements..................................................5LO 3...............................................................................................................................................10P4 Different planning tools and their advantages and disadvantages.......................................10LO 4 ..............................................................................................................................................13P5 Adopting management accounting to resolve the financial problems.................................13CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16
Management Accounting - Assignment Sample_2

INTRODUCTIONManagement accounting is used to present data in proper format through the variousmethods and tools to provide the information to the management for taking efficient decisions inbusiness unit. Jacksons Fencing is a medium scale manufacturing company. They started theirbusiness by selling chestnut stakes and sale agriculture fencing to the local farmers. They alsosale timber security fence to their customer. The report highlights the requirement ofmanagement accounting in the organization and their importance in calculating the profit of theorganization and managing the cost. It also explains the different methods of reporting likebalance sheet, income statements, cash flow etc. It demonstrates the purpose of various cost toprepare the income statement of the company like absorption and marginal cost. It also explainsthe pros and cons of different planning tools. The report also help to resolve the financialproblems like variances in the budget, control the business activity etc.LO 1P1 Management accounting and their requirementManagement accounting :It is the process of presenting data in useful manner which provide the information to topmanagement for taking decisions and formulate the policy and procedure for the company. Thecomponent are managing the risk, performance and strategy in the business organization.Key function of management accounting system Providing data and information : Planning is the process of formulating long term andshort term plan for achieving the organization objective. Management accounting systemfunction is to provide the useful data and information for decision-making process (Kaplan, andAtkinson, 2015). Jacksons Fencing manufacture company use the data and information toimprove their productivity and profitability and make proper plan to accomplish the process.They provide the information regarding their agriculture fencing product to their customer.Organizing : Organizing is the process of assigning roles and responsibility to themanagers and employees for accomplish the business goal and target. Management accountinghelp the Jacksons Fencing company by providing the report and useful information to control theactivity of the managers and assigning responsibility according to their efficiency. For exampleJacksons Fencing company use the information and organize them in proper format like balancesheet, income statement to get the true profit of the company.3
Management Accounting - Assignment Sample_3

Analysing :Controlling refers to monitor, evaluate and analyse productivity of businessunit and take effective measures for improving the performance (Renz, 2016). It provides theuseful data to calculate the differences between the standard and actual output and analyse thedifferent activities to find the reason behind the variances and manage them to get the higherprofitability and productivity in the market. Communication : It works as a link between the management and employees byproviding information to different department and evaluate the department to control theiractivities and improve their performance. For example Jacksons Fencing company use themanagement accounting to communicate their decisions with the managers and employees tointegrate their work in same direction.Different accounting systemCost accounting : Cost accounting is help to evaluate the price of the products andservices of manufacturing business. The correct cost of the product support the firm to producethe goods which gives the maximum return with minimum cost (Maas, Schaltegger, and Crutzen,2016). Activity based costing in the Jacksons Fencing help to assign more logically themanufacturing overhead cost of the product (Cost Accounting Systems, 2013).Financial accounting : It is used to keep records of financial information and presentthem in different statements like balance sheet, income statement and cash flow statement toaware investor and customer about the financial position of the business organization. Jacksonfencing company use the financial accounting system to control the information and data. Ithelps the company to audit the financial statements like cash flow, Income statement to get thetrue data and present the fair position to the customer and stakeholders and control the internalactivity like management functions, manufacturing process etc.Management accounting : Itis used to produce information for taking decisions andcontrol the company activity by evaluating the variances in comparison of actual and expectedcost (Management Accounting – Meaning, Advantages & Functions, 2018).P2 Various methods for report the management accountingManagement accounting works as a tool for understanding the data and interpret themthrough different reports like financial reports, cash flow, revenue report, product cost report etc.in organization.Purpose and uses of reporting tools4
Management Accounting - Assignment Sample_4

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