Management Accounting Assignment : Jupiter PLC

MANAGEMENT
ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Management accounting and different system ...........................................................................1
Different methods used for management accounting reporting ..................................................2
Benefits of management accounting system and its application to Jupiter PLC.........................3
Management accounting system and reporting are integrated with organization processes.......5
TASK 2............................................................................................................................................5
Range of management accounting techniques.............................................................................5
TASK 3............................................................................................................................................8
Advantages and disadvantages of different planning tools used in Budgetary control ..............8
Use of different planning tools and their application for preparing and forecasting budget.....10
TASK 4..........................................................................................................................................11
Management accounting systems for responding to financial problems...................................11
Management accounting can lead organization to sustainable success by responding to
financial problems ....................................................................................................................12
Evaluate planning tools for accounting to solve the financial problem to lead organization to
sustainable success ....................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Management accounting utilizes provisions of accounting data in order to better inform
themselves before they make decision matters within their company that assists their
management and execution of control operation. The aim of management accounting is to
provide requirement of administration by existing relevant data, so that business conducted in an
effective manner. It deals with the forecast about the future(Kaplan and Atkinson, 2015). It
assists administration to take decision and to make plans for future instructions of action. The
objective of management accounting is to define accounting data to the administration. It helps
in administration in communicating the fiscal data about company. It aids administration in
coordinating the functions of the organization.
This case study is based on Jupiter PLC. It is medium sized manufacturing company This
report will explain meaning of management accounting and its different system. It will state
different methods used for management accounting reporting. It will evaluate benefits of
management accounting system and their application within organization. It will apply range of
management accounting techniques. Furthermore, report will explain advantages and
disadvantages of various types of planning tools utilized in budgetary control. It will analysis use
of different planning tools and their application for preparing and forecasting budgets.
TASK 1
Management accounting and different system
Management Accounting:
Management accounting is involvement with accounting data that is helpful to
management. It is the term utilized to draw accounting techniques, systems and methods that
with particular knowledge and skills help administration in its project of increasing profits and
reducing losses. It is the execution of accounting data in relation to develop policies to be
followed by direction and help it daily operations (Suomala, Lyly-Yrjänäinen and Lukka, 2014).
The primary conception of management accounting are related to calculation and following
costs. It is job that includes partnering in management decisions making, devising planning and
execution management system and giving expertness in fiscal reporting and relation to help
administration in the data and apply of strategy of company.

Different type of management accounting system:
There are mainly four types of management accounting system that is job costing,
inventory management, cost accounting and price optimization use within in Jupiter PLC.
Job Costing: It is accounting that paths costs and revenues by job and allow standardized
reporting of profitability by job. Job costing helps in management accounting system that enable
numbers to be allotted to single items if expenditure and revenues. It measures all costs includes
in structure job or in the fabrication of products done in separate collection.
Cost accounting: It is procedure of recording, categorizing, evaluating and assigning
costs connected with process and then developing different courses of activity to control the
prices. This purpose is to advise the administration on way to optimize business practices and
procedures based on cost efficiency and capacity(Langfield-Smith and et.al., 2017).
Inventory management: Inventory is product and material that holds by company for
ultimate goal of resale. Inventory management is discipline mainly about particular shape and
placement of stocked with products. The scope of it involve balance among refilling lead time,
carrying costs of inventory and asset management. Company utilise LIFO and FIFO for
valuation of inventory in Jupiter PLC.
Different methods used for management accounting reporting
Management accounting reporting are prepared by organization to have information
about the various operation of the firm. This reports are prepared by management in which
information about the operating activities is included. There are various management accounting
reports that consist of : Budget report : These reports is prepared by management to have measure the
performance of organization on the basis of the budget prepared which consist of
estimated expenses and incomes which are compared with the budgeted expenses and
incomes. Budget reports provide information to management about the deviation in the
performance which affect the Jupiter PLC to take corrective action to improve the
performance of firm (Kaplan and Atkinson, 2015). Budget report is prepared by Jupiter
PLC to measure its performance to take necessary action ton improve its performance
and profitability.
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