Management Accounting: Types, Methods, and Planning Tools

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) Discuss the management accounting with its types..............................................................1
P2) Explain various method of management accounting reporting.............................................3
TASK 2............................................................................................................................................4
P3) Produce cost in order to using proper techniques for cost analysis such as income
statement by using marginal and absorption costs.......................................................................4
TASK 3............................................................................................................................................6
P4) Discussion on important advantages and disadvantages of different types of planning tools
in order to used budgetary control...............................................................................................6
TASK 4............................................................................................................................................8
P5) Differentiate between two enterprises to analyse the ways they effectively adapting
management accounting system..................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The term management accounting is seen as a process which are used by most of an
organisation in order to properly allocated resources and run an enterprise (Akhir, Aziz and
Roslin, 2018). It is method which refers to manager are effectively applying for making decision
due to accomplishing goal and objectives of an entity. Management accounting is process which
are helpful to assessment of cost and expenses in order to attained organisation success and
productivity. The report is about UCK Furniture which is a medium sized business working in
manufacturing sector. It includes accomplishing all the detail regarding financial function as well
as performance, liabilities, accounts receivable, inventory and budget report to solve the
financial challenges. It includes make comparison between the two enterprises in order to dealing
financial aspect different way as well as follow the different structure.
TASK 1
P1) Discuss the management accounting with its types
It is utilisation of various tool and techniques in order to managers take effective
decision. It is different from financial accounting in order to utilising various process as well as
methods. It is essential to identify, analysis and communicate accounting methodology in order
to properly allocated the financial resources. The main aim and purpose of this process which
refers to effectively communicate and properly allocate financial resources due making effective
decisions (Cockcroft and Russell, 2018). It is approach which refers to financial information and
statement are developed in order to managing business properly. Management accounting
utilised various resources in order to properly maintaining record which effectively using by
organisation. In context of UCK Furniture, it includes guidance in order to developing client
UCK Furniture services because properly managing business due to preparing proper records
such as trading, profit and loss, balance sheet. It is process which refers to effectively taking
decision properly for sale of product, analysis and many more. There are varieties of
management accounting which are deliberated below.
Inventory management system-: It is system which refers to effectively evaluating and
monitoring stock and asset in order to properly managing business operations. It is essential to
managing inventory system so used various method such as EOQ, JIT and ABC analysis in order
to smooth flow inventory. In situation of establishment, it is essential to properly managing
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inventory in order to realising goal and objectives. It considered properly allocation of resources
in order to managing expanses.
Job costing system-: A management accounting system which refers to effectively
identify and analysis need of product so accordingly manufacturing quality and quantity (Dyouri
and Azdimousa, 2019). It involves properly managing costing system in order to effectively
managing costing in order to properly track product and services. It includes utilisation various
method and procedures so identify product and services in order to effectively fulfilling
customers need and demand of UCK Furniture. It consist properly estimation of product and
services in order to customer receive product, price, received order and record cost due to
developing final report and providing to accountant. It involves effectively managing demand in
addition to supply of invention and services.
Price optimising system-: It is system which refers to effectively maintaining price of
products in order to proper estimation of different product as well as analysis the various
situation of market. It is process which refers to customers set prices in order to managing price
of product and services in order to demand of particular product and services (Hussaini, 2019).
In UCK Furniture, essential requirement of the system is for maintaining demand of market and
offered various product at different prices so organisation using various promotional strategies.
Cost accounting system-: It is system which refers to properly estimation of price of
products and services which are helpful in order to increasing effectiveness of organisation. It
considered as cost accounting process refers proper costing and managing the expanses of
organisation (Jeon and Gleiberman, 2017). within UCK Furniture, essential requirements related
to the system is proper estimation of cost of products in order to employees of an organisation
participated and coordination in order to fulfil customer need and demand of products.
Therefore, UCK Furniture in order to properly managing accounting process in order to
proper allocation of financial resources due to taking effective decision. It is essential to
managing system which refers to taking effective decision and enhancing profitability. It
includes properly managing information and communication in order to estimation price of
product in order to offered customers at affordable price. It is helpful for developing business in
manufacturing of desks.
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