Management Accounting: Systems, Reports, and Cost Analysis

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Management Accounting Systems:........................................................................................3
P2 Management Accounting Reports:........................................................................................5
M1 Evaluating benefits of discussed MA systems:....................................................................6
P3. Computing costs through applying suitable methods of cost-analysis to formulatye income
statements:...................................................................................................................................7
.....................................................................................................................................................9
...................................................................................................................................................10
...................................................................................................................................................10
...................................................................................................................................................11
M2. Accurately apply the range of management accounting techniques and produce
appropriate financial report.......................................................................................................11
D2. Produce financial report which accurately apply and interpret the business activities ...11
P4: Explaining major advantages & disadvantages of different types of planning tools used for
budgetary control:.....................................................................................................................11
M3: Analysing uses of different planning tools/methods and their application for preparing
and forecasting budgets:............................................................................................................12
P5 Comparing as to how corporations are effectively adapting MA systems for responding to
multiple financial problems:.....................................................................................................13
M4 Analysing about how as to respond financial problems, MA can lead entities towards
sustainable successes:................................................................................................................14
D3 Evaluating as to how discussed planning tools can respond effectively to resolving such
financial problems to lead organisations to sustainable success:..............................................14
CONCLUSION..............................................................................................................................14
REFRENCES.................................................................................................................................16

INTRODUCTION
Managing accounting is that kind of process which is there to identify, analyse, evaluate,
interpretation with expressing information to the managers in order to achieve goals and
objectives. This is there to refer over the cost that is there to make accounting of information
which has been helping over making decision more effective. It is refereed to as cost accounting
and information which has been helping to make decision making mechanism provide
effectiveness. Managing of farm work related to accounting is different from various other
method. This is there to provide an framework with detailed information that has been
concerning with financial and non-financial transactions.
This assignment is based over IKEA organization. It is an multinational corporation
which is originated from Sweden and headquarters is in Netherlands. It come into existence in
the year 1943. Vast range of product is being sold by the organization that is furnished furniture,
kitchen appliances, household furniture and also customized furniture according to clients
demand. Things to be covered in this report is based over various kinds of managerial accounting
system. Further various approaches is being used in order to handle reporting has to be
explained. Along with benefits and drawbacks that is planning mechanism which is being used
to maintain budgetary control. Final cost is there to make determination for using correct method
in reading income statement through marginal and absorption method.
TASK 1
P1 Management Accounting Systems:
Management accounting system is there to provide accounting information for
development over strategies which has been implementing managers for supporting day-to-day
operations. In simple words this allows management for conducting all tasks, with plaining,
scheduling, hiring and regulating with managing. Management is there to include process of
making a task happen through plaining, scheduling, hiring, managing and regulating. Managing
of accounting has to be focused over particular kind of accounting method which is there to play
significant role through various kinds of business establishment possible. Various accounting
system that can be used by IKEA are explained as follows:
 Cost accounting system: Under this kind of managing system it is reference is majorly
focused over costing system of production. This method is being used by the organization

for measuring of goods for inventory/stock valuation, cost benefit analysis and cost
management purposes. The cost accounting method helps to measure the cost of goods
that are essential to the organization of sustainable operations. This is helpful in
monitoring of manufacturing cost related activities. IKEA is required to be incorporated
through method that has been practising to help tracking of expense for manufacturing of
operations.
 Inventory management system: This has been forming accounting framework that is
related over creating effectiveness within management of an organization's stocks like
raw materials, finished products and within an organization. Also it helps in assisting of
inventory within the management system and decisions should be taken regarding
procuring of raw materials with the capacity of production. Since it helps to recognize
the quality of inventory in stores. The correct accounting system will assist the company
in determining the supply of raw materials, finished products and other inventories
decisions. As in IKEA company, inventory accounting system could be used in their
function to determine the quality of materials and also finished products within the
organization (Johnstone, 2018).
 Price optimisation system: In this kind of system accounting mechanism has been
helping for assessing price of good and services to be provided. Price management is that
method which is helpful in assessing of customers response over various price rates. As
there is no price management program within IKEA it becomes hard for determining of
correct prices of its products. In correspondence accounting it is very much essential for
an organization to have correct price of product and services. Thus, IKEA 's
implementation of the price optimization system helps to allocate effective products'
prices within the corporation.
 Job costing system: As per this MA system it has been helping over assessing separate
job costs over various operations. Job costing is that kind of framework which is used in
providing of accurate details within the job costs and within the capacity of business
organizations for making sensible decision. Generally accounting system has an very
important role for controlling job costs. In other words method through which labour
costing uses within the business sector this is used for evaluating production of cost to be
surpassed the prices of materials which increases profit within an organization. This