Management Accounting Systems and Planning Tools for Budgetary Control

Management Accounting

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1 Explanation of management accounting systems...................................................................1
P2 Explanation of different types of management accounting reporting system........................1
M1 Evaluation of the benefits of management accounting systems...........................................1
D1 Integration of managed accounting system and....................................................................1
TASK2.............................................................................................................................................1
P3Income statement using marginal and absorption costing.......................................................1
M2 Accurately apply a range of management accounting techniques and produce appropriate
financial reporting documents.....................................................................................................1
D2 Produce financial reports that accurately apply and interpret data for a range of business
activities.......................................................................................................................................1
TASK 3............................................................................................................................................1
P4 Advantages and disadvantages of different types of planning tools used for budgetary
control..........................................................................................................................................1
M3 Use of different planning tools and their application............................................................1
TASK 4............................................................................................................................................1
P5 Uses of management accounting system to solve financial problem.....................................1
M4 Analyses how, in responding to financial problems, management accounting can lead
organisations to sustainable success............................................................................................1
D3Evaluate how planning tools use for solve financial problem................................................1
CONCLUSION................................................................................................................................1

REFRENCES...................................................................................................................................3

INTRODUCTION
Management accounting is a technique use by managers to present accounting
information in a systematic way to run day to day operation of an undertaking. It included
various systems, techniques, tools through which business organization maximise their profits
and minimize losses. Management accounting also known as management oriented accounting
and accounting for management in order to understand this concept briefly Creams Limited has
been taken which provides various flavours of ice cream, and food products to the customers. In
this report uses of various managerial accounting system for recording of information related to
manufacturing process has been determine. This report also included uses of planning and
managerial reports for identifying problems and issues suffer by organization and how these
tools are help in overcome problems and help in maintain strong position of an organization
within the economy has been clearly described.
TASK1
P1 Explanation of management accounting systems
Management accounting: It is a process of collecting accounting information in a way
which helps in taking decision and formulating plans for future business operations. In
other words management accounting is a technique in which financial information present
by manager for taking necessary decision. Managers of Creams Limited various
accounting managerial systems for their organization which are mention below:
Job Coasting System: This system is used to determine cost of each process of manufacturing,
this type of system mainly used for manufacturing organization where organization produced
product according to the special demand of to customers, for example supports car company etc.
Managers of Creams Limited used to determine each order cost, is started with received inquiry
from customer and run a systematic process which include estimation of job cost, receiving the
order production order, record cost and provide goods to customer when job are finished. This
system is used for identification of cost and manage the risk of uncertainty (Maas, Schaltegger
and Crutzen, 2016).
Price optimising System: It is a tool used by Managers of Creams Limited to determine price of
the products through which company can earn maximum profits. For these purpose managers
select different pricing strategies at various level f product life cycle which help in maintain
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