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Management Accounting INTRODUCTION 1: Essential Needs of Different Kinds of Management Accounting Systems

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Added on  2021-02-19

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Management accounting system is considered as the system that is applied through managers for analysing as well as monitoring financial data of organisation on time in order to develop decisions for regular activities. Fenner Plc utilise some of its types of management accounting system so that they can keep the information about actual performance of their business. All the types are mentioned below: Inventory management system: This kind of system are mostly utilised into manufacturing firm in order to keep inventory records that are used in production activities.

Management Accounting INTRODUCTION 1: Essential Needs of Different Kinds of Management Accounting Systems

   Added on 2021-02-19

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Management Accounting INTRODUCTION 1: Essential Needs of Different Kinds of Management Accounting Systems_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Management accounting and essential needs of various kinds of management accountingsystems...................................................................................................................................1P2. Several methods utilised for management accounting reporting.....................................3TASK 2............................................................................................................................................4P3. Calculation of cost with the help of cost analysis techniques..........................................4TASK 3............................................................................................................................................7P4. Advantage and disadvantage of several kinds of budgetary control planning tools........7TASK 4............................................................................................................................................9P5. Comparison of way through which firms are utilising management accounting system torespond financial problems.....................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................12
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INTRODUCTIONManagement accounting is considered as the systematised procedures of identifying,gathering , measuring, interpreting preparing as well as communicating financial data. This isutilised through management for formulating plans in order to organise and control firms(Anessi-Pessina and et.al., 2016). For this report, the chosen company is Fenner Plc which is thefastest growing British industrial belting as well as another polymer based productsmanufacturer. Its headquarters is in Hessele, England, UK. The purpose of this report is todescribe management accounting and essential needs of various management accounting systemtypes. Several methods that are utilised for management accounting reporting as well as differentplanning tools for budgetary control. Apart from this, calculation of cost with the help of costanalysis techniques and how that aids to resolve financial problems are also mentioned in thisreport. TASK 1P1. Management accounting and essential needs of various kinds of management accountingsystems.Management accounting is refers as the methods of that is utilise through company formanaging, monitoring, controlling and analysing their whole operative as well as executionalactivities effectively. Therefore, managers of the Fenner Plc utilise this for the intent to formulatestrategic decision for the effectiveness of their business. Management accounting system isconsidered as the system that is applied through managers for analysing as well as monitoringfinancial data of organisation on time in order to develop decisions for regular activities. FennerPlc utilise some of its types of management accounting system so that they can keep theinformation about actual performance of their business. Moreover, with the assistance of thesetheir managers can maintain appropriate records so that can be utilise in future for effectivenessof business. All the types are mentioned below: Inventory management system: This kind of system are mostly utilised intomanufacturing firm in order to keep inventory records that are used in productionactivities. This aids manager for examining that stock of raw material are available in itswarehouse or not (Ashraf and Uddin, 2015). Fenner Plc can applied his particular systemso that they get to know that sufficient raw material are their to manufacture polymer1
Management Accounting INTRODUCTION 1: Essential Needs of Different Kinds of Management Accounting Systems_3
products or not. Moreover, this is needed by respective company to observe actual statusof inventory. Price optimisation system: Price-optimisation is crucial for attaining competitiveadvantages. This system is applied by management of organisation to set appropriateprice for whole products for accomplishing the requirements of customers. With theassistance of this firms try to develop the goods pocket friendly for its target market place(Ball, Grubnicand Birchall, 2014). Fenner Plc can applied this system for examining theconsumer response upon various prices that are set through them for its industrial beltingand other polymers based products. Moreover, this is also helpful to set effectiveproducts price in order to accomplish organisational goals and clients needs. For it,respective firm select the appropriate pricing strategy for the business success. Cost accounting system: This is considered as the system that is mostly utilise throughfirms for estimating the cost of various goods that are manufactured by organisation. Thisdirects the them know about the approximation of accurate expenditure that are incurredduring manufacturing. Fenner Plc applied this to examine the cost that is related to allmanufacture polymer based product, belting etc. It is needed in respective company asthis aids their manager to find out actual manufacturing cost. Initially, they measure aswell as records overall expenses separately then compare the outcomes with exact outputso that their business performance can be measured.Job costing system:This is considered as the costing system that is applied for gatheringas well as assigning overall manufacturing costs that incurred during business activities(Christ, urritt and Varsei, 2016). Fenner Plc can used this particular system for assessingthe cost of whole procedures that are performed as per the specification of customers.This is essential for firms to apply this as it aids them to ascertain actual cost of each jobthat is done through company. This system is mostly utilised through organisations thatperforms their business operations as per particular clients orders. From the above mentioned management accounting system are applied by the Fenner Plcmanager so that they can analyses their organisational performance as well as develop strategicdecisions for the effectiveness of business. 2
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