Lean Management Accounting Practices Impact
Added on 2020-07-22
18 Pages5032 Words166 Views
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Management Accounting
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1 and 2..................................................................................................................................1P1 Explaining management accounting and its different types...................................................1P2 Assessing different methods which are used for management accounting reporting............3M1 Evaluating the benefits of management accounting system.................................................4D1 Explaining Accounting systems and management accounting reporting can be integrated..5P3 Preparation of income statement by using both absorption and marginal costing system.....6M2 Producing financial reporting documents by using the system of MA.................................9D2 Producing financial report by interpreting data set................................................................9TASK 3..........................................................................................................................................10P4 Assessing benefits and drawbacks of different types of planning tools that are used forbudgetary control.......................................................................................................................10P5 Identifying the manner in which management accounting system helps in respondingfinancial problems.....................................................................................................................13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................16
INTRODUCTION In the recent times, management accounting system has gained high level of importancewhich in turn helps in making optimum use of financial resources. Moreover, system ofmanagement accounting is highly associated with cost control and gives input for decisionmaking. Reports of management accounting provide manager with suitable information fordecision making by placing emphasis on each and every aspect such as stock etc. The presentrepot is based on Unicorn which is small-sized retail store of UK. It offers grocery products orservices to the customers at affordable prices. In this, report will shed light on the mannerthrough which Unicorn can undertake management accounting techniques for getting the desiredlevel of outcome or success. Besides this, report will also provide deeper insight about thereports that manager prepares with the motive to give information to the team of highermanagement. Further, it depicts the tools and techniques that business unit can employ for thedevelopment of competent plan. TASK 1 and 2P1 Explaining management accounting and its different types ToManagement team, Unicorn Date: 1st November 2017 Subject: Management accounting (MA) system Introduction: The concerned report will describe management accounting and state its differenttypes. In this, the concerned report will furnish information about the manner in which businessunit can undertake different types of MA system. Main body Management accounting involves decision making, devising appropriate plan and thereby helpsin managing performance more effectually. MA tools and techniques are highly significantwhich in turn provides assistance manager in getting timely information and thereby aid in short-term decision making.Types of management accounting: Tools that can be undertaken by Unicorn for effectualmanagement are as follows:Cost accounting: This technique of MA assists company in determining the cost ofproducts or services offers by it. Moreover, such technique of MA focuses on recording,classifying, analyzing, summarizing, allocating as well as evaluation of alternative courseof action. Hence, by undertaking such system business unit can control cost and wouldbecome able to enhance efficiency and capability.
Inventory management: It includes EOQ, just in time etc techniques which can be usedfor managing stock more effectually. Moreover, storage and ordering cost imposes highlevel of burden in front of firm in financial terms. Thus, by using suitable tools as well astechniques company can manage optimal inventory level and would become able toensure smooth functioning of activities. Price optimization: This system of MA helps company in understanding the manner inwhich customers will respond if fluctuations will take place in pricing aspect. Thus, byusing such tool manager of Unicorn can determine suitable prices and would become ableto attract large number of customers. In this way, by using such tool firm can attain itsaims and objectives to a great extent. Application of MA within the business unit In the context of Unicorn, by undertaking EOQ system manager can determine the levelof stock needs to be maintained within the firm for ensuring better services to thecustomers. This in turn helps company in saving cost and attaining higher margin byenhancing the level of customer satisfaction. Along with this, by using the cost accounting system manager can determine CPU bydividing total expenditure with number of offerings. Hence, by considering such cost firmwould become able to ascertain profit margin. Conclusion: By summing up this report, it can be presented that all the above mentioned MAtools are highly effectual. Hence, by undertaking all the above depicted systems Unicorn candevelop appropriate framework and get competitive edge over others. Sincerely Management accountant
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