Management Accounting - Assignment Sample
Added on 2021-02-19
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ManagementAccounting
Table of Contents
INTRODUCTIONMA also called as cost accounting that are chain of activities for identification,measurement and analyse with interpretation by communicating knowledge and information toget desirable goals and objectives. It is one of most crucialactivity to understand thecommercial with costing collection by translating in important knowledge and information. SoMAcrucial for a firm to deliver and accommodate necessary information for getting competitiveadvantage. This report rely on Oshodi PLC that well known production enterprise have expertisein production of JOJO fruits for all age people. This assignment rely on MA and importance ofvarious MA system with included tools for reporting of MA. It also studies the cost and relatedadvantages such as absorption and marginal cost to get important details. At last it focus onplanning tools with benefits and drawbacks of various kinds of techniques to plan whichadministration can adapt management accounting systems to eradicate fiscal trouble. TASK 1P1 MA refers to crucial aspect for an organisation to transform the process after analysecosting which associated by products so that important decisions should be reap out.Management accountants observe or evaluate the various events regarding the business afterevaluating demand of consumers in better style. In an organisation to coordinate variousactivities they should be apply differentways of MA systems here are:Management accounting takes financial information and after that build reports byinternally and confidentially from managers that enables in occupy best opportunities byevaluating ways to operate a business in effective way. Inventory management systems:IM is an crucial discipline regarding the specify the shape and coordinate stocked goods(Armitage, Webb and Glynn, 2016). Goods or stocked goods needed at every location to checkits visibility for supply various types of goods and services at last-ditch user base. So it helps tobalance the both demand and supply side for giving delighted experience to customers base . Itmajorly tracks the two crucial functions stock room of organisation by receiving information andshipping also. It ultimately proved helpful to accurately know the current inventory level. Oshodi
PLC uses the FIFO kind of inventory system to succeed and coordinate actions concerned withthe inventory in proper way.Cost accounting system:CAS availed by producers to capture and evaluate actions related with production byavailing the inventory system (Bobryshev and et.al., 2015). It is majorly designed for to trackand record directions of stocked goods at kinds of tier for manufacturing goods process. Incontext of Oshodi PLC they by using cost accounting system estimate with related cost whileproducing goods analysing level of gainfulness, appraisalof stocked goods bymeasuringcosting in better style. So that very much crucial part of MAS by delivering final goods andservices by measuring each and every factor in better manner. Job costing system:JC accounting that a chain of activities by assigning cost that related with a particularjob or a business activity. That management system widely used for the manufacturing andconstruction industries by allocating costs at time of production of goods in better way. In JBSvarious types of cost involved in it which are direct substantial, manpower and kinds of costwith many more. In context of Oshodi PLC they use the job costing system for assign the cost ofa particular business activity to remain always competitive in market place.Price optimisation system:Price optimisation system proved helpful for finding the best price for products andservices to get maximum pay from consumers and enhance their willingness to purchaseproducts (Brennan and Merkl-Davies, 2013). By using for evaluating the fluctuations in supplyof products in both B2B and B2C kind of business they deliver lot of time and efforts for settingprice optimisation by ensuring that their products should reach frequently and maximise profit.In context of Oshodi PLC they by using that management accounting system by calculatingdemand which differ from various coststeady after combining contentwith basis of stockedgoods by recommending best cost. For a firm all various types of MAS play an important base by delivering the basic valueand deliverables that ultimately helps in taking decision making. It enables to transform theknowledge that contains into reports, financial statements and in other documents. It tracks eachand every activity until reaches to ultimate consumer base in proper way.
P2 MA that helps to produce the reports for an organisation internal stakeholders against theexternal stakeholders. Its result of MA for preparing periodic reports for an organisation andvarious departments. For an organisation it is important to evaluate varies types of MACtechniques for coordinating and communicating necessary information to ultimate consumerbase.Budgets report:Budget is a financial document that build on behalf of income and expenditure for aspecific time period. In context of manufacturing company, they include in their budget theexpected items that should be sold out and produce with resources required to builds products inwell manner. By using the simple model of production and sales that are the initial stage ofbudgeting process with help of historical accounting knowledge and information. It provedbeneficial to forecast budget by assuming the sales unit over a specified time period. In contextof Oshodi PLC prepare financial budget by predicting each and every variable that helps inforecasting budget in proper manner. Cost reports:Managerial accounting proved beneficial to determine cost of goods. It should be takenas the complete fresh price of products, overhead cost, labour price and many more factors thatcome into consideration (Burns, 2014). in that whole process cost should be bifurcated into totalno. of unit that are buildat time of manufacture goods better way. In cash data brief in naturethat helps managers to observe pricing of goods in against the selling cost. It proved beneficialfor managers to plan by managing limit of their income. In context of Oshodi PLC by using costreports calculate various kinds of prices that are very much important for them for achievingorganisational goals and objectives. Performance reports:Performance reports refers to the collection of necessary knowledge and informationrelated with the performance of an individual, then analysing it and creating reports on them andsend them to respective stakeholders that are part of reporting of performance related to project.It is an important part of communication management planfor achieving organisational goalsand objectives. With the help of reports a manager should be determine for review an individualactions and activities for accordingly liable to best serve to them. It provides all necessary
information that are required at all level of an organisation to lead in marketplace . In context ofOshodi PLC by taking that reporting system they can be able to better serve their employees byidentifying their key skills and abilities that ultimately give motivation to them.Account receivable ageing report:ARG is a kind of written report that list out consumer invoices and various kinds ofcredit entry by using data extent. Thata kind of first handinstrument that avail by collectionpersonnel that helps to determine about overdue of payment (Edwards, 2013). It used as acollection tool that contain contact information for each and every consumer base. In respectiveorganisation Oshodi PLC with availing techniques and tool firm should be evaluate financialhealth of their consumers so that they can give best goods accordingly. It can be said that for a firm to correlate various tools and techniques so that better resultsshould be accomplished for achieving best results that are measurable in nature. M1 For an organisation some important benefits of manageable accounting system that arehere:Management accountingsystem BenefitsInventory managementsystemsThat kind of group helps to organisation to enhance sales bybalance both demand and supply side of their products byacknowledging the viability of their products. It provedbeneficial in enhancing the transparency while dealing withsituations such as in context of Oshodi PLC they by trackingeach and every activity until it reaches at ultimate consumerbase. It is an kind of combination of technology and variouskinds of processes that helps to Oshodi Plc in their monitoringand maintenance of stocked products and services to get properoutcomes. So it is very much effective for an organisation toevaluate each and every attribute such as raw material, suppliersand finished products to sent to end users. Cost accounting system:Cost accounting system proved beneficial for organisation infixation of prices of products and services on basis of demand. It
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