Management Accounting and Reporting Methods for London Clothing Works

Management
Accounting

INTRODUCTION
Management accounting is defined as the provision of monetary as well as non monetary
information of decision making to managers. It is also known as managerial accounting and is
method of examining operations and cost of business for preparing internal reports that aids
manager to attain organisational objectives (Busco, Caglio and Scapens, 2015). As per the
scenario, the undertaken organisation for this report is London Clothing Works which is a
manufacturing firm that specialises in raincoats, outerwear and unstructured garments. Its
headquarters is in North London, UK. This report crucial many MAS requirements, various
management accounting reporting methods. calculation as well as income statement
development, tools of budgetary planning along with their advantage and disadvantage are
explained. Moreover, comparison of adopting management accounting system to responds
financial issues are also discussed in this report.
TASK1
P1
Management accounting is regarded as the profession which includes partnering
administrative decision making, devising planing as well as performance of management system,
facilitating expertise into financial report and control to aids management into development as
well as execution of a firm's strategy (Meaning and Definition of Management Accounting,
2019). In London Clothing Works its manager follow this to assure that it will improve their
enterprises in future with aids of current plan of action which are develop by them. The vital
intent of this is to gather detailed information to produce internal report that help undertaken
entities to make efficacious decision within many situation. Also, it plays crucial role in London
Clothing Works. Few are as follows: Assists in efficacious controlling: Management accounting is beneficial for business
concern to make appropriate control over many practices (Cooper, Ezzamel and Qu,
2017). As by utilising key information from internal report manager may focused on that
activities that outcomes in lower profit or higher cost. In relation to London Clothing
Works, their manager may control many prospects efficaciously by aids of management
accounting.
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