(Docs) Management Accounting System

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Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Management Accounting and its essential requirement..................................................1P2: Types of accounting reporting methods are....................................................................4M1: several important benefits of using management accounting systems..........................5D1: Evaluation of various reporting method and accounting system integration..................6TASK 2............................................................................................................................................6P3: Types of costing methods used for calculating net profit...............................................6M2: Different types of accounting tools and techniques........................................................8D2: Analysis of data collected from income statement..........................................................8TASK 3............................................................................................................................................8M3: Analysis of various planning tool and its application for forecasting.........................10TASK 4..........................................................................................................................................10P5: Comparison with other organisation to overcome financial issues................................10M4: Analysis of planning tools to deal with financial issues..............................................12CONCLUSION.............................................................................................................................12REFERENCES.............................................................................................................................13
INTRODUCTIONIn current business era the management in a company is performing a crucial part inmanaging business operations and it gives the importance to the management accountingprocess. The main purpose of using the management accounting is to manage the businessoperations and comprises with maintaining the systematic recording, summarising andcommunicating the managerial information in systematic analysation form to ascertain thebusiness transactions . It assists the organisations to manage their all business activities in mosteffective way is helpful in ascertainment(Kihn and Ihantola, 2015). The main objective of usingappropriate accounting system is to manage appropriately the activities of the business and toachieve the desired goals. Everyjoy enterprises operates in entertainment industry whichprovides leisure and entertainment services. This study pertain the knowledge about managementaccounting and its system and types of management accounting aims to provide specificinformation about various types of management accounting methods used for proper evaluation.Besides this, explanation about the different types of costing methods use for calculating theprofits according to different kind of costing techniques. Along with this, there are advantagesand disadvantages of budgetary planning tools used in budgetary control process.TASK 1P1: Management Accounting and its essential requirementIn present time, that the manager engaged in managing the activities regarding thebusiness operations and perform the activities like analysing, summarising in a significantmanner or in terms of money and interpret the results there of. Management accounting is themost effective and efficient way of presenting the of financial data in such a significant manneras it provide company's crucial direction towards the goals in order to run their business.Management use management accounting systems in order to form effective policy which isbeneficial in performing the daily business activities and operation those are adopted and utilisesby the company. It comprises with the various accounting tools and methods as well asapproaches which helps in summarising and analysing the managerial data. it is also helpful inanalysation of management activity. This will help them to ascertainment of profit by effectiveand efficient utilisation of business resources. The analysis of all data prepared and maintain in amanner that it will be maintained under the systematic framework which is helpful in deciding1
the future plans and operations. Management accounting system is crucial element and iscomprises with accounting terms and concepts and of process preparation informativestatements that identifying, measuring, summarising and communicating the informationregarding the business operations to managerial level for the effective decision making(DRURY, 2013).Definition: Management accounting is termed as very important part of the organisationas it ensures the management to make needful decisions by providing the operationalinformation in most appropriate systematic manner. It is also essential for management in orderto perform their managerial activities like planning, organising and decision making in a propermanner.Financial accountingManagement accountingIt is a process of preparing financialaccounts.Financial accounting helps to ascertainprofitability of a business organisationsuch as Everjoy.It is a process of preparing cost andmanagement accounting reports.This type of accounting helps toascertain productivity and efficiency ofan organisation.Importance of Management Accounting in organisation.Helpful in preparing of plans: Planning is the most important elements of managementoperations. It is used to accomplish all desired goals of the organisation, those aredecided by company for the future period.Helpful in quick decision making: The management accounting report is used to makeoperative decisions in positive manner to attain the desired goals by making correctdecision on correct time. that are crucial for an organisation.Quantifying the future goals: It is considered as one of the important basis of datawhich is helpful is examines the objectives and achieve goals or to defines the valuableway of achievement.Types of Management Accounting system:Cost accounting system:It comprises with the department which engages to controland coordinate their costs and helps in maintaining cost effective operations. Thecompany need to take into consideration of this system in context of quantifying thecosts incurred in the production process. On the basis of cost effectiveness and ability of2
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