Tools and Techniques of Management Accounting Assignment

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Added on 2020-10-23

Tools and Techniques of Management Accounting Assignment

Added on 2020-10-23

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MANAGEMENT ACCOUNTING

TABLE OF CONTENTSINTRODUCTION...................................................................................................1ACTIVITY 1............................................................................................................1PART A Introduction of management accounting.......................................................................1ACTIVITY 2............................................................................................................4Part A...........................................................................................................................................4Advantage and disadvantage of types of planning tools that use in budgetary control and forecast budget.............................................................................................................................4PART B........................................................................................................................................8How company can achieve success by responding to the financial problems............................9Planning tools of accounting helps in achieving success and solving problems.........................9REFERENCES......................................................................................................14

Tools and Techniques of Management Accounting Assignment_2

INTRODUCTIONManagement accounting is a profession that helps in decision making, planning andmanagement of performance and also provide expertise in make report of finance and thencontrol on management for formulation and implementation of organization strategy. It is aaccounting process related to prepare reports and accounts that helpful in making decision longterm and short term(Cooper, Ezzamel and Qu, 2017). It also provides all reports timely andaccurately and it is only useful for managerial work that helps in take decision aboutorganizational goal. So its main objective is making effective decision. It also helps in makeplan, control for organization. Balfour Beatty is a multinational public limited company ofUnited Kingdom. It was founded in 1909 by George Balfour. So its headquarter in London and26000 employees are engaged in this organization. So its major work is engineering. This reportswill be covers that types and benefits of management accounting, planning tools of managementaccounting. Budgetary control, and effectiveness as well.ACTIVITY 1PART A Introduction of management accountingManagement accountingIn Balfour Beatty, management accounting additionally known as cost accounting, is thesystem of analysing business expenses and transactions to prepare intrinsic monetary record,information, and account to help managers of the company in decision making technique foraccomplishing company's objective. However, in different phrases, it's far the act of creatingeconomic and costing records and translating that facts into beneficial data for management ofthe company.However in management accounting of the company, the financial data and non-financialrecords is presented at normal durations say weekly or biweekly to the management. Thus, thispresentation will consists of prediction, budgets and evaluations. Hence it assists themanagement of the company in making plans of the company's activities.Further, based on the facts of the company provided in management accounting, theadministration department of the company can take decisions about persevering with a productor enhancing the sale strategy. However, due to the fact that management accounting isn't alwaysregulated through any law, the control can decide the regions that require more evaluation,research and as a result form different tactics.

Tools and Techniques of Management Accounting Assignment_3

Types of Management Accounting adopted by Balfour Beatty:Cost accounting system: A cost accounting system of Balfour Beatty is a framework usedby company to estimate the value of their products for profitability evaluation, stock valuationand cost management. Thus, in this system of the company, cost allocation is finished primarilybased on both conventional costing system and activity-based system.Inventory control system: An inventory control system of the Balfour Beatty combinesthe usage of computer software program, barcode image scanner, barcode peripheral device, andmobile gadgets to form the management of stock for e.g. goods, elements, stock, etc. Thus, thepurpose of inventory control is to appropriately know inventory levels and mechanicallydecrease undervalued and overvalued situations. However, through efficaciously monitoringquantities across locations the company will be able to make optimum inventory choices.Job Costing System: The job costing system of Balfour Beatty is the procedure ofgathering data approximately the expenses associated with a selected manufacturing or providerjob. Thus, this data will be required by the company to be able to put up the information to apurchaser beneath a contract where charges are compensate.Price optimization system: This management system can be used by Balfour Beatty asthese are numerical programs that compute how demand varies at exceptional fee levels, thenintegrate that information with statistics on expenses and inventory tiers to advocate expenseswith the intention to improve income of the company.Methods of management accounting reportsBudget reports: budget reports will the Balfour Beatty owners to examine their overallperformance and executives of the company can analyse their department's overall performanceand can manage expenses of the company. Further, the assumed budget for the duration isprimarily based on the real expenses from preceding years. Thus, owners and the executives ofthe company also can use budgets reports to offer bonus to employees.Accounts Receivable Aging: This method is a crucial tool of company for handling theflow of money if they expand credit to their customers. However, this document breaks down thepurchaser balances by means of how for long period they have been due. Further, most of thisreports encompass detached columns for bills which might be 30 days late, 60 days overdue and90 days overdue or extra. Thus, the manager of the company can use this to find issues with theircollections system.

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