Report on Essentials of Management Accounting

Management Accounting

Table of Contents
PROJECT 1......................................................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1.1Management accounting and essential requirement of different types of management
accounting systems.................................................................................................................1
1.2 Different methods which are used for management accounting reporting.......................3
1.3 Benefits of management accounting systems ..................................................................4
1.4 Integration of management accounting systems and reporting with organisational process 5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
...............................................................................................................................................8
PROJECT 2......................................................................................................................................9
INTRODUCTION...........................................................................................................................9
TASK 1............................................................................................................................................9
1.1 Calculation of cost using right technique of cost analysis...............................................9
1.2 Range of management accounting techniques for produce a financial report................10
1.3 Advantages and disadvantages of absorption and marginal costing methods................10
TASK 2..........................................................................................................................................11
2.1 Advantages and disadvantages of various planning tools..............................................11
2.2 Estimate the expenses.....................................................................................................13
2.3 Purpose of a budget........................................................................................................13
TASK 3..........................................................................................................................................14
3.1 Adaptation of management accounting system to respond financial problems.............14
3.2 Management accounting system improve financial performance of firms....................15
3.3 Planning tools used in management accounting.............................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
.......................................................................................................................................................17

PROJECT 1
INTRODUCTION
Management accounting is broad concept which includes both financial and cost
accounting. It includes the process of collection, evaluation and interpretation of the accounting
information which enhance decision making power of manager. Through preparation of
different financial and cost accounts ascertain both financial and non financial information which
provides opportunity regarding improving the existing performance of employees through proper
guidance. It helps the manager regarding formulation of the policies and strategies which helps
in effective operation of day to day to activities. UCK Furniture provides their products and
services in UK. They planning to provide training course to interns to provide information
regarding management accounting principles (Christ and Burritt, 2013).
In the present report explain about, essential requirement of different types of
management accounting systems, different methods which are used for management accounting
reporting, benefits which are attained by the manager of UCK Furniture through adoption of
management accounting systems and integration of management accounting systems and
reporting with organisational process.
TASK
1.1Management accounting and essential requirement of different types of management
accounting systems
In today's business environment, management accounting is known as an important tool
for business organisations as this help provide an opportunity to identify, collect, analyse and
communicate the data that is important for firms to achieve set goals. Number of management
accounting methods are there which are used by firms to collect information relevant for
business such as cost accounting, inventory control, job costing and various methods of
managerial accounting. All these methods help firm in collect both financial and non financial
data which guide managers in control business activities and increase effectiveness of decision
making process (Macintosh and Quattrone, 2010). Collected information support management
in monitor business operations and at the same time help in forecast future sales and risk involve
in business operations. Collected information support managers in formulate financial reports
and budgets which support in achieve set objectives.
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Under concept of financial accounting managers prepare income and financial statement on the
basis of past information available. One of the main reason behind preparation of these accounts
is that it provide direction to all staff members to perform their job roles in an effective manner.
Various type of management accounting systems
Concept of management accounting is very important for enterprise as this help managers
in take informed decision which help firm in achieve its set goals and objectives. Various type of
management accounting systems art there which support the business activities. One of the main
benefit of this is that it bring coordination among various business functions. Different type of
management accounting systems is give under following points:
Job costing: This is one of the most popular and effective system of management
accounting. Basically this is used by firms to record the cost of a job. This can be use by UCK
furniture to remain inform about the cost related with each job. Both indirect and direct cost is
consider by this system. One of the main benefit of this method is that it help in ascertain the
profits generated form a specific job at workplace.
Inventory accounting: This system is tool by firms to value the inventory available.
Mainly inventory of enterprise is divided into three main categories known as raw material, work
in progress and finished goods. This system help firm in maintain a record of inventory which
help in reduce the cost related with storage of inventory. Further, it help in utilise all resources to
an optimum level (Nandan, 2010).
Price optimisation system: This tool of management accounting is used by firm to
maintain the prices of its products. One of the main benefit of this is that it help firm in generate
large number of profits and at the same time help in offer quality products to its customers. With
help of this company can collect information about the fluctuations take place in prices.
Cost accounting system: This system can be used by UCK furniture for control the extra
expenses which take place during perform various functions at workplace. It support manager in
identify the production cost and help in determine the profits of company.
Managerial accounting: This tool is use by firm for make informed decisions. It help
manager in control and monitor day to day activities of business.
Requirements of management accounting system
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