Accounting and Reporting System - Report

Added on -2020-07-23

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Management Accounting
Table of ContentsFROM: MANAGEMENT ACCOUNTING OFFICER..................................................................1TO,...................................................................................................................................................1GENERAL MANAGER..................................................................................................................1UNICORN GROCERY COMPANY..............................................................................................1SUB: MANAGEMENT ACCOUNTING SYSTEM .....................................................................1INTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Management accounting system and its essential use......................................................1P2. Various methods used for management accounting reporting ........................................3M1: Advantages of management accounting.........................................................................5D1: Critical evaluation of reporting system ..........................................................................5TASK 2............................................................................................................................................6P3: Different costing methods using in order to get net profit ..............................................6M2: Evaluation of accounting techniques..............................................................................8D2: Critical evaluation of income statements........................................................................8TASK 3............................................................................................................................................8P4: Advantages and disadvantage of using planning tools in budgetary control ..................8M3: Evaluation of planning tools.........................................................................................10D3: Critical analysis of financial problems..........................................................................10TASK 4..........................................................................................................................................11P5: Different measures to overcome financial issues...........................................................11M4: Analysis of financial problems.....................................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
FROM: MANAGEMENT ACCOUNTING OFFICERTO,GENERAL MANAGERUNICORN GROCERY COMPANYSUB: MANAGEMENT ACCOUNTING SYSTEM INTRODUCTIONManagement accounting is an effect aspects of an organisation. It provide necessaryinformation by using appropriate techniques for making interpretation of accounting data thoseare done by company during an accounting year. Here, accounting should serve therequirements of management as they are concern with decision making. Managers in everysituation of organisation need data regarding every business activity to make plan, properly inorder to attain organisational aims and objectives (Tappura and et. al., 2015). This project reportconsists of various information about accounting and reporting system. In order to calculate thenet profit for company, several costing methods are used. It also examines planning tools whichare used in budgetary controlling. This particular report also provides information about financialissues and crucial measure to overcome them. Overall project explains critical evaluation ofaccounting information which can be crucial for the purpose of taking valuable decision.TASK 1P1. Management accounting system and its essential useManagement accounting is related with accounting data which is useful for Unicorngrocery to manager their day-to-day operations. On the other hand, it is any form of accountingthat enables a business to conducted more accurately in respect to financial transactions. Theaccounting information is arranged in such a manner and deliver management for effectivecontrol to attain the aims of business. Hence, it is related with data collection from varioussources such as internal and external sources. The collected data is analysed, process, interpretate and communicated for use within an organisation (Renz, 2016). All these are done in order totake necessary decision regarding future growth and profitability of Unicorn grocery . Accountmanagers can uses all these necessary information of accounting data in accordance to make1
better future for unicorn grocery. The target of the company is to attain their short-term and longterm aims. It provide essential outcome to the concern organisation about their financialperformances during one year of working. Every information which is generated by company isneed to be summarised into various books such as ledger, trail balance and other records. Allthose entries which are recorded into these statements are sum up together and posted into a finalstatements. This particular statements is overlooked by various investors and shareholders fortaking investment decision-making. They used to examine company's current year performance, total cash flow generated bythem as well as sales capacity, account receivable and outstanding debts etc. It is theresponsibility of accounts managers to make proper entries and present it in well organisedformat so that it is easy for outside parties to make there critical decisions (Fullerton, Kennedyand Widener, 2014). It can impact the profitability, if information mentioned into statements arenot appropriate. In order to overcome these issues manager uses effective accounting systems.With the used of accounting system all those problems can be solved those are coming at thetime of decision making. Significance of management accountingThere are various advantages of MA those are explained underneath:Delegation of control: In current time, the function of management is no longer becomepersonal. It helps unicorn grocery in proper delegation of authorities for attainment ofvision and mission of businesses.Qualitative information: It is necessary to do so because, it would concentrate on theactual problem to deliberate and attain particular solution for hard issues.Types of accounting system: Cost accounting system: In this accounting is said to be the framework which is used byunicorn grocery to determine cost of their products for making profitability analysis,stock valuation and measures to control extra costs. It can help the company to examinecost of sales and reduce excess of wastage which are arises in an organisation.Price optimisation system: According to this system plenty of valuable decision aremade in accordance with the specific costs for a product and services manufactured byunicorn grocery. By this, response of customers are analysed about the prices fixed bycompany for their products it will be effective from them to attain operating profits.2

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