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Management Accounting - Desklib

Added on - 22 Nov 2020

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ManagementAccounting
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Essential management accounting systems used in an organisation....................................1P2: Various methods used for management accounting reporting..............................................3M1: Benefits of management accounting systems within organisation......................................4D1: Management accounting systems and reporting integrated in processes.............................5TASK 2............................................................................................................................................5P3: Cost analysis to prepare an income statement......................................................................5M3: Management accounting technique for producing financial reporting................................7D2: Analysis of data comes from income statements.................................................................7TASK 3............................................................................................................................................8P4: Merits and demerit of using planning tools used in budgetary control................................8M3: Analysis of several planning tool and its application for forecasting.................................9TASK 4............................................................................................................................................9P5. Management accounting systems to respond to financial problems.....................................9M4: Financial problems, management accounting can lead organisations to sustainablesuccess.......................................................................................................................................11D3: Planning tool respond to financial problems......................................................................12CONCLUSION..............................................................................................................................12REFERENCES.............................................................................................................................13
INTRODUCTIONManagement accounting is a process of identifying costs that involve in businessoperations. It also help in preparing accounting reports which assist in decision making process.Its objective is to aid in planning and formulating policies of future and provide solutions tostrategic business issues. Airdri is a well established manufacturer of hand dryers located inUnited Kingdom. They provide highly reliable, beautifully designed and energy efficient handdryers throughout the world.In this project report, various management accounting systems are analyse and itsreporting methods are identified that are used in preparing effective reports. Cost of product andincome is determined with the use of marginal and absorption costing techniques. Differentbudgetary control planning tool are evaluated that helps in preparing and forecasting budgets. Atlast, several management accounting systems are used for responding company's financialproblems (Amidu, Effah and Abor, 2011).TASK 1P1: Essential management accounting systems used in an organisationManagement accounting refers to process of tracking company's internal cost involves inits operations which helps individual, management and business in making decision. Its mainobjective is to provide information that assist in planning, recording, organising, controlling anddirecting for business activities. The management accountant of company plays an important rolein performing various tasks to ensure organisation's financial security that help in achieve overallobjectives. Airdri is a small size company and wish to expand its business in future. Companyfollow management accounting for providing accounting information that help in dealing withfuture course of actions. So, it use several management accounting systems in order to run itsbusiness effectively (Carlsson-Wall, Kraus and Lind, 2015). Cost accounting, price optimisation,inventory management, job costing systems are four different types of systems that Airdri usingfor achieving its objectives on time. Various management accounting systems are explainedbelow:Cost Accounting System:This approach is mainly used for cost ascertainment andcontrol to achieve maximum profits. It is an essential and ongoing process that provides costinformation to management and decision makers. This system deals only with cost related1
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