Management Accounting

Management Accounting
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Contents
Contents...........................................................................................................................................2
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
P1. MA and its different types of system....................................................................................3
P2. Various methods of MA reporting........................................................................................3
TASK 2............................................................................................................................................3
P3. Income statement by using different costing methods..........................................................3
TASK 3............................................................................................................................................3
P4. Various planning tool of budgetary control with its advantages and disadvantages.............3
TASK 4............................................................................................................................................3
P5. Comparison of two companies using MAS to resolve financial problems...........................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
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Introduction
The systematic process of determining, collecting, summarising, recording and analysing the
useful information into proper accounts which support the manager of internal department to
make correct decision is known as Management accounting (Anshori, 2020). This is a field of
accounting which enables meaningful decision to be made in order to increase the overall
performance and productivity in a year. In this report, pearl accounting provides accounting
services to connect catering services in order to attain competitive advantages.
The report includes, concepts and system of MA, various reports of management
accounting, costing methods to prepare income statements. In addition, report also includes
benefits and drawbacks of planning tool and the importance of MAS in resolving the different
financial issues.
TASK 1
P1. MA and its different types of system
Management accounting is an important method for putting disparate details into
something like a systematic format such that final choices can be taken. It contains both
monetary and non-monetary information in of theoretical and practical information in place to
bolster companies in achieving the short and longer objectives. This kind of accounting is done
by the accounting group to assist administrators make more use of data for performance. MA, as
just a challenging achievement, entails a variety of aspects and strategies that, in the end, aid in
the production of productive statements that aid in the judgment of continuing projects for
ultimate productivity. The below are some of the characteristics of a management accounting
framework that could be discussed:
Cost accounting system: Different costs that arise in an organization's activities are handled
through such a method in an acceptable way so that full income can be produced from those
practices. It also aids management specialists in the development of information in order to
formulate proper approaches that can provide a foundation for expansion, market survival, and
so forth. As a result, cost control accounting is claimed to be efficient for creating cost-based
decisions by an organization's managers. The focus of this scheme is on cost competitiveness,
which will assist an organization in generating full income through greater production and
reliability in its activities (Suranatthakul and et. al., 2020).
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Inventory management system: This method is used by the internal manager in order to
prepare the systematic records of total inventory which is available for producing goods and
services for a specific time frame. Inventory system also enables the manager to check the total
products and services which are totally ready for customer use, as well as the actual inventory
within the development stage and most importantly the exact figures of raw material which help
in making goods as per the market demands. In connect catering services manager may
implement this system and make a details records about their stock level which is available in the
three forms i.e. raw material, finished good and work in progress. This will lead to increase the
supply of services as the more customer are attracted towards company which directly support to
increase the profit margin.
Price optimisation system: This system is beneficial in making survey regarding customer
interest, market situation, information related to expenses and demographic changes which help
in making the proper supply and demand of company’s product to the large customer base. This
method is beneficial in making the most suitable prices of goods for the company which support
to attain the interest of customers and enables to maintain operating profit. In connect catering
services manager can implement this system to fix the prices of services to respective customers
as per their demand. This helps them to satisfy the needs of customers at reasonable prices and
also cover the costs which is included in making that particular services.
Job order system: This MA system is very much crucial in making the count of total cost
involved in different job in each department so that total expenses can be calculated in order to
make certain crucial decision. Manager with the support of this system helps in maintain a
separate record of every cost direct as well as indirect involved in making various goods.
Manager in connect catering can make individual record for similar jobs which helps to
determine the most profitable and least profitable (Tatake, 2020).
P2. Various methods of MA reporting.
Management accounting reports are fundamentally used to settle on best choices, recognize
progress just as to reach the business objectives in viable way. The satisfactory way of the
different MA report begins from defining specific objective or goal and furthermore create
comprehension of significant outcomes which are beneficial in long term. After objective is
being fixed, it is needed to recognize key execution pointers which are ideal reasonable for
dissecting the actual productivity in a specific timeframe. Additionally, is helps to make genuine
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