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MANAGEMENT ACCOUNTING INTRODUCTION

   

Added on  2020-12-29

16 Pages4237 Words193 Views
MANAGEMENTACCOUNTING

Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31. Management accounting and essential requirement of different management accountingsystems........................................................................................................................................32. Different methods of management accounting reporting........................................................43. The advantages of management accounting system ..............................................................54. Evaluation of management accounting system's integration with the managementaccounting reports with the organisational process....................................................................6TASK 2 ...........................................................................................................................................61. different management accounting techniques.........................................................................6TASK 3............................................................................................................................................91. Using of different planning tools and also their application for preparation of andforecasting budgets......................................................................................................................92. Advantages and disadvantages of different planing tools Which are used in the budgetarycontrol.......................................................................................................................................11TASK 4..........................................................................................................................................121. Management accounting use ion company to solve the financial problems.........................12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................15Books and Journals...................................................................................................................15Online........................................................................................................................................16

INTRODUCTIONManagement accounting refers to the process of preparing e different accounting reportswhich will hep to generate the information and which can be sued by the different users as it helpin their decision making.ABC Ltd. Is te medium sized enterprise which is working and operating in themanufacturing sector. The report will explain about the different techniques of incomesstatement to ascertain net profit. In addition to this different management accounting system andaccounting reports are also used to aid the decision making. Furthermore, the report will explainabout some planing tools which are used by the organisation to solve the financial problems ofthe company.TASK 11. Management accounting and essential requirement of different management accountingsystems.Management accounting is basically the process of preparing the management reportsand accounts in the organisation so that reports can provide accurate and effective financial andstatistical information in order to make effective and most efficient decisions by the organisation.This also help in analysing and evaluating the business cost and operations so thatorganisation can prepare the financial reports and accounts to helps the managers in theirdecision making which ultimately helps them in achieving their organisation goals andobjectives(Tappura and et.al., 2015).There are different types of management accounting systems which are used forgenerating the different information for different uses. Some management accounting systemand its requirements are :Cost accounting system- it is the management accounting system which focuses onestimating the cots of the products s that they can effectively analyse the profitability and it alsohelps them in valuation of the inventory in order to control the cots efficiently.Inventory management systems – this system helps the ABC Ltd. To track the inflowand outflow of inventory, supply of raw material , stock availability etc( Shields, , 2015). In

simple words, this system leads in combination of the desktop, software, scanners, mobiledevices so that can track or streamlining the management of inventory or stock . The requirement of this system is to accurately and appropriately knowing about thecurrent levels of the inventory so that it leads to reduction of the situation of overstock and understock and by effectively ad efficiently tracking of the inventory(Renz,2016), it helps the businessin making the right and appropriate inventory decisions.Job costing systemis the system which focusses on assigning the manufacturing costs toan individual unit of output. This system is generally used when the goods produced are differentfrom each other and each other as different and significant cost. Manufacturing cost is the totalof direct labour, direct material, and overhead costs(Quattrone, 2016). This system is used toaddress the issue of the customers as some customers are ready to pay only for the certain cotswhich is to be charged on their jobs.Price optimization systemis program which used to measure that how demand changesaccording to change at different price levels and after combining this data with the inventorylevel and cost information so that it can easily hep the organisation in recommending anddeciding the prices which will further help to improve the profits. This system will help theABC Ltd . by using in promotional pricing method,s setting up their initial price and discountingthe process.2. Different methods of management accounting reportingManagement accountant reports re the reports which are produced for providing theinformation to the internal members stakeholders of the company. These reports facilitates inproviding the internal information which is received through the financial data of the ABCLtd(Qian, Hörisch. and Schaltegger, 2018). These reports are generally used for the planning,regulation, decisions making and the performance measuring to make the effective impact in theactivities and flow of the business. There are different types of management accounting reports which are as follows:Budget reports- these reports are prepared for analysing the business performance andalso analysing the departmental performance on order to control the cost and expenses. Budgetreports helps the ABC Ltd(Otley, 2016). In measuring their actual performance with the planned

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