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Management Accounting : Sample Assignment

   

Added on  2021-01-02

11 Pages3396 Words434 Views
MANAGEMENTACCOUNTING

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Q.1 Management accounting and its important to integrate management accounting systemwithin organisation......................................................................................................................1Q.2 Various techniques and methods utilised for management accounting reporting................2Q.3 Calculation of cost using appropriate techniques for cost evaluation with marginal andabsorption....................................................................................................................................3TASK 2............................................................................................................................................5Q.4 Explain the use of three planning tools in management accounting....................................5Q.5 Case studies and comparison to management accounting applied to address financialproblems......................................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9

INTRODUCTIONManagement accounting is recognised as managerial accounting it is an essentialmanagement accounting technique that helps in consolidating the essential information for betterdecision making and strategic planning process (Dekker, 2016). This report presents the meaningof management accounting system and its integration with management reporting. Costcalculation by using the appropriate cost analysis income statements. Jupiter plc is optedorganisation to execute the process of management accounting. Various type of planning toolswith advantages and disadvantages also elaborated in this report. Use of management accountingin terms of resolving financial issues for preparing and forecasting budgets in organisationsillustrated with practical based examples. TASK 1Q.1 Management accounting and its important to integrate management accounting systemwithin organisationManagement accounting is a form of recording, arranging and consolidating accountinginformation for better management and control. Managerial accounting directly integrated withthe senior management level and authorities.Job Costing System: Job costing structure of accounting is a process of gatheringinformation subject to expenses of produce and cost of particular job benefit. It also record theactivity cost of all items that are produced in organization. This framework is utilized by Junioraccountants accountant of Jupiter PLC with the aim of creating objectivity for particular jobsections and furthermore, it helps to cite cost of item which is adequate to consolidated bygathering data about direct material, overheads and direct labour. Price Optimisation: Price optimisation is a system helps to determine the price ofproducts by evaluating perspective of customers and market position of organisation. Junioraccountant of Jupiter PLC utilize this accounting system to deal with marketing scenarios withadequate benefit. This framework is utilized by organization which depends on their opposition'smarket level, construct cost of items and generating order request. Inventory Management System: Stock administration is an essential requirement ofmanufacturing and retail organisations. This accounting framework of helps to manage theinventory level within organisation (Wouters and Kirchberger, 2015). This will causes them to1

expand efficiency, sales and get higher profit for ventures. It additionally encourages accountantof organization to register the raw materials stocks, advancement of aggregate costs incurred inplacing orders. There are following methods are used in organisation.FIFO: This is an inventory technique in which inventories are sold on the basis of firstacquire and first sell out.LIFO: This inventory technique remain centralised around sale of last acquiring units atinitial stage. Cost System System: Cost accounting framework is the technique utilized by firm torecord item cost exercises through various generation process. It is critical accounting frameworkconnected by Junior administration accountant of Jupiter PLC to find out their expense and tasksfor better administration and control.Integration of management accounting system with evaluating benefits of managementaccounting systemIt is analysed that various type of management accounting information remain crucial forcalculating and evaluating benefits for better management and control. The process of managingthe changes and valuations are considered with creating the effective decision making process.Q.2 Various techniques and methods utilised for management accounting reportingPerformance Report: Performance report is kept up to break down the entire organization execution includingworkers. By utilizing this report Junior administration accountant of Jupiter PLC evaluate theexecution and work of their representatives also settle on strategical choices for organizationdevelopment. And furthermore by utilizing it association to set criteria to enhance executionlevel, to show compliances and so on. Inventory Management Report: Stock Management report is made to keep up stock and make creation process morepowerful. Junior administration accountant of set up this answer to get all data about materialsand stocks (Abrahamsson, Englund and Gerdin, 2011). This report additionally give the preciseinformation of organization opening and shutting stock. A few systems which utilized byassociation is turnover proportion and EOQ. For plan of this report utilizing techniques are LIFO(Last in first out ) , FIFO ( First in first out ) and weighted normal cost strategy for legitimateexamination. 2

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