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Management Accounting - 4Com Plc

   

Added on  2020-09-08

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MANAGEMENTACCOUNTING
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Management accounting and its types ............................................................................1P2: Various management accounting reporting.....................................................................3M1: Advantages of using accounting system and its application...........................................4D1:Evaluation of management accounting reporting.............................................................5TASK 2............................................................................................................................................5P3: Calculation of net profit through using various costing methods....................................5M2: Various management accounting methods use under reporting.....................................7D2: Interpretation of income statements................................................................................7TASK 3............................................................................................................................................8P4: Advantages of planning tools use in budgetary control...................................................8M3: Analysis of planning tools used by the company.........................................................10D3: Use of planning tool to overcome problems..................................................................10TASK 4..........................................................................................................................................10P5: Management accounting system helpful in responding to financial problems..............10M4: Analysis of all those financial issue..............................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
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INTRODUCTIONManagement accounting is the collection of data from various sources, analyse andcommunicate those information in order to make effective decision regarding growth anddevelopment of the business. It consist of financial and non-financial transaction which arerecorded by the manager in companies books of account to generate value to the company. Theproject report consist of various task that summarises of different types of accounting systemsand methods those are use by 4COM Plc. Other aspects of the project report is about various cost those are use under the companyto calculated net profit for the company are explained 1. On the other hand different planningtools use by company in order to control budget. Some financial problems are also discussedunder the project and how to overcome all those financial issues which are arise in anorganisation. It has been observed that after making proper analysis certain recommendation isbeing provided to the company so that they can plan there business in order to achieve therefuture goals.TASK 1P1: Management accounting and its types Management accounting is that kind of processes and techniques that are based on theeffective use of organisational resources in order to help managers in their ways of increasingcustomer values and shareholder interest 2. On the other hand it is related with the production ofinformation those are used for making internal report that will be helpful in taking valuabledecision making in 4COM Plc. The major objective of accounting system is to concentrate onorganisation regarding how they are utilising its resources and to find out total cost incurredduring development of each unit of a product and services. For any company it is important to make effective planning in order to cut down extracosts those are incurred by the company in their daily operations. So in that process accountingsystems are more helpful to manage and control all those decision which are taken in relation to1Fowzia, Rehana. "Strategic management accounting techniques: Relationship withbusiness strategy and strategic effectiveness of manufacturing organizations inBangladesh." World Journal of Management3, no. 2 (2011): 54-69.2Becker, Wolfgang, Patrick Ulrich, and Michaela Staffel. "Management accounting andcontrolling in German SMEs–do company size and family influence matter?."International Journal of Entrepreneurial Venturing 3, no. 3 (2011): 281-300.1
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financial transaction before recording it to company books of account. The company main targetis to minimise losses those are affecting profitability of 4COM Plc. As a management accountofficer under the company it is my sole responsibility to look after all those financial decisionthose are necessary in coming future. 4COM Plc is a small scale company which is associatedwith development of broadband and other electronic phone so it is easy to manage there dailyoperation in much more effectively 3. But they will also have to use some accounting system sothat to get best results with the utilisation of available resources of the company. Most of theaccounting system use by 4COM Plc in order to compare there past and current year financialstatements in front of its shareholder and other investors those are responsible for making theirinvestment under the company so that they would get sufficient amount of return in coming time.As for proper operation of companies requirements some of the techniques are used in the way toprepare financial statements. Some of them are as follows:Price optimisation system: It refers as one of the important tool of the company whichis use as numerical analysis by 4COM Plc in order to determine how customers are goingto respond to various prices for product and services those are coming in there waysthrough different modes. In order to generate maximum profit to the company it is use asimportant tool by the company that gives an ideas that what prices should be best thatwill meet its aims and objectives.Inventory management system: It refers to that kind of software which are use astracking of stock level, orders, delivery and sales. It is use under manufacturing sectors sothat to create work order, bill of stock that are kept by the company and other aspect ofdata which are associated with the company. The basic reason why company are usingthese system is to manage there stock those are kept for very long period of time so thatthere quality can not get hampered.Batch costing: It is most associated with total lost size produce during the year. Theproduct are identified through a batch code number which are mentioned under eachproduct. It consist of information about the product that when they are produce and inwhich year. 3Gates, Stephen, Jean-Louis Nicolas, and Paul L. Walker. "Enterprise risk management:A process for enhanced management and improved performance."Managementaccounting quarterly 13, no. 3 (2012): 28-38.2
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