Management Accounting of Zylla Report
The assignment is a submission front sheet for a Management Accounting unit in the BTEC Higher National in Business program at MR College.
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Added on 2020-07-22
Management Accounting of Zylla Report
The assignment is a submission front sheet for a Management Accounting unit in the BTEC Higher National in Business program at MR College.
Added on 2020-07-22
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MANAGEMENTACCOUNTING
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting and the essential requirement of various type of managementaccounting system..................................................................................................................1P2 Explain different methods used for management accounting reporting...........................3M1 benefits of management accounting system and their application in organisation..........4D1 Evaluation of management accounting system and management accounting reporting..5P3 Cost calculation with the help of absorption and marginal costing techniques................5D2 Produce financial reports which accurately applied and interpret data for complex businesssituation..................................................................................................................................6TASK 2............................................................................................................................................6P4 Explain the advantages and disadvantages of various type of planning tools used forbudgetary control....................................................................................................................6M3 Evaluate the use of various planning tools and their application for making andforecasting budgets.................................................................................................................9P5 Evaluate how organisations are adapting management accounting system to respondfinancial problems..................................................................................................................9M4 Analyse how management accounting system helps in responding financial problems forsustainable success...............................................................................................................10D3 how planing tools for accounting respond appropriately to solve financial problems to leadorganisation..........................................................................................................................10CONCLUSION .............................................................................................................................11REFERENCES..............................................................................................................................12
FROM: MANAGEMENT ACCOUNTANT OFFICERTO,GENERAL MANAGERZYLLA COMPANYSUB: INFORMATION ABOUT MANAGEMENT ACCOUNTING SYSTEM INTRODUCTIONManagement accounting is becoming a new aspect which is being used in organisationnow a days in organisational context (Messner, 2016). There are various type of methods andconcepts are considered in management accounting which helps managers and accountants tocontrol and monitor the actions of organisation. The overall concept of management accountingsystem is elaborated in respect of medium size business organisation. ZYLLA company is optedmedium size organisation to demonstrate the dynamics of management accounting system. Thisreport is prepared to demonstrate an understanding of management accounting system. Widerange of management accounting techniques used in management accounting system. Use ofplanning tools used in management accounting subject to preparing budgets are explained in thisreport. Ways are compared that how organisations are adapting management accounting systemto respond financial problems. TASK 1P1 Management accounting and the essential requirement of various type of managementaccounting systemManagerial accounting is an another form of management accounting which is rapidlyused by managers and accountants for effective management and operation of business.Management accounting helps to align the organisation's functions in single format in order tocontrol and monitor the actions and operations of departments (Melnyk and et. al., 2014). This isthe system used at top level management and senior level authorities in order to effectivemanagement and operations. Management accounting rules and concepts helps the managers tomake effective strategies and plans for sustainable success and growth. Being a part of decisionmaking process it is considered as managerial accounting. Different definition and explanations are given by IMA which is known as Institute ofManagement accountants. As per IMA management accounting is a professional tool which isused by managers in decision making and strategic planning process. Developing plans,1
performance management, management reporting, financial reporting are some essential taskswhich are used by accountants and finance managers. Managers and accountants become eligibleto prepare and sort out the issues and conflicts remain associated with effective management andoperation (Bennett and James, 2017). With the changing environment of business organisationsenhanced the required of management accounting. Various type of management accountingsystems are used in organisations as per organisational type.Management Information System (MIS): this is one of the management informationsystem which is rapidly used by the organisation in responding operation and managementproblems. This is one of the computer based and system based accounting system whichproduced computer based information which helps managers and accountants to manage andoperate the function and operations of business (Bebbington, Unerman and O'Dwyer, 2014 ). Asummarised information issued by the departmental managers in order to align the processdetails in single format. This information basically assist decision making process. It requiresvast knowledge about the basic knowledge of information management and system. Accountantswho operate MIS system retain vast knowledge about the accounting concepts and rules.Cost accounting system: this accounting system helps the managers to ascertain the costof production and managing the organisations departments. It provides a system to record thetransactions and helps accountants to prepare cost reports. In cost reports there is a briefexplanation given by the managers subject to cost incurred at particular department and section.Cost accounting system contains various cost principles and cost rules such as historical cost,present value of inventories. Information and reports which are produced under cost accountingsystem helps to consolidate all the departmental cost in single format. This system helps toascertain the cost of individual product and determine the profit margin.Inventory management system: this is one of the management information systemwhich helps the manager to manage the flow of inventory (Lavia, López and Hiebl, 2014). Thissystem basically used by manufacturing and retail industries. This accounting system helps tomanage the order quantity and analyse the lag in period of finished good. Information andreports which are produced by inventory management system remain helpful for store managersand storekeepers. There are various type of raw material stock used by the organisations whichdeals in multiple products. This accounting system helps to bifurcate the raw stock as per theirpriority and order of use. EOQ, inventory management, Stock valuation are some important2
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