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Management accounting systems and their applications

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Added on  2020-11-23

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MANAGEMENT ACCOUNTING INTRODUCTION 1 TASK 11 P1 Management accounting and different types of management accounting systems 1 P2 Different methods used for management accounting reporting 4 M1 Benefits of management accounting systems and their applications 5 D1 Management accounting systems and management accounting reporting is integrated 6 M2 Techniques of cost analysis to prepare an income statement of marginal and absorption costing 6 M2 Management accounting techniques and financial reporting documents 8 D2 Financial reports that accurately apply and interpret data 8 TASK 39 P4 Advantages

Management accounting systems and their applications

   Added on 2020-11-23

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MANAGEMENT
ACCOUNTING
Management accounting systems and their applications_1
Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Management accounting and different types of management accounting systems..........1
P2 Different methods used for management accounting reporting........................................4
M1 Benefits of management accounting systems and their applications...............................5
D1 Management accounting systems and management accounting reporting is integrated. .6
TASK 2............................................................................................................................................6
P3 Techniques of cost analysis to prepare an income statement of marginal and absorption
costing.....................................................................................................................................6
M2 Management accounting techniques and financial reporting documents........................8
D2 Financial reports that accurately apply and interpret data................................................8
TASK 3............................................................................................................................................9
P4 Advantages and disadvantages of different types of planning tools.................................9
M3 Different planning tools and their applications..............................................................11
D3 Planning tools for accounting respond appropriately to solving financial problems.....11
TASK 4..........................................................................................................................................11
P5 Management accounting systems to respond to financial problems...............................11
M4 Responding to financial problems, management accounting........................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
.......................................................................................................................................................15
Management accounting systems and their applications_2
INTRODUCTION
Management accounting refers to provision of financial advice and advice to an
organisation for using in company as well as development of business. It is a procedure of
making the management accounts and also reports which give timely and accurate financial
information needed through employers to make daily operations as well as short term decisions
(Arroyo, 2012). It is a necessary profession that contribute in monitoring, planning, controlling
and decision making of functions of company. Management accounting is wider concept that
involves costing provisions and helpful in developing better coordination between various
departmental functions. It aids management in order to achieve more flexibility in its structure
and also make better strategies which aids in attaining objectives of company. This report is
based on Tech (UK) Ltd. that manufactures the special chargers for the retailers. Under this
mention report discuss about the management accounting and provide necessary needs of various
kinds of management accounting systems. Advantages and limitations of various kinds of
planning tools which are used for budgetary control will also be mentioned in it. In order to
respond to the financial problems, firms adopting the effective management accounting systems.
TASK 1
P1 Management accounting and different types of management accounting systems
From: Management accounting officer
To: General manager of Tech (UK)
Sub: Management accounting system
Management accounting refers to a process that consists regards evaluate, interpretation,
identification and also presenting accounting information achieved through manager with the
help of cost accounting related techniques as well as management accounting. It is helpful in
decision making. It is helpful for management n develop along with execution of better strategies
in better or effective manner (Boyns and Edwards, 2013). There are various functions of
management accounting such as control, monitor, plan and also increasing employees
performance by make improvement of understand regarding various functions of departments.
Definitions of management accounting
1
Management accounting systems and their applications_3
On the basis of CIMA, Management accounting involves determination, measuring,
interaction and interpretation of necessary information by which management can develop better
plan for proper utilisation of resources in order to achieve set objectives.
According to IMA, Management accounting is a wider concept that helps in process of
decision making, performance and planning of the management systems.
Significance of management accounting
There are many advantages which are related with management accounting applications
in an organisation (Cadez and Guilding, 2012). It is helpful in giving various kinds of
management accounting information that is helpful for management of Tech (UK) Ltd. It is used
as a decision making tools related to various aspects. Some importance of management
accounting mention below:
Identification of Aim- According to information and data available, management
accounting is helpful in identify its set aims and also try to search the better method by which it
can achieve its targets in easy manner.
Performance measurement- Budgetary control standard costing is an effective
techniques that enable performance measurement. In context to standard costing, these are
identified once and also actual cost compare with the standard cost. Under this, it able
management to search all deviation among actual and standard cost. The budgetary control
system is helpful in analysing effectiveness of staff members.
Give better management control- Management accounting tools are helpful for
management in coordination, planning and controlling business activities, standard getting and
also assess the actual performance continuously able management to “management through
exception”.
Decision making- Management accounting system is helpful in make improvement in the
decision making of internal parties in order to get the high outcomes (Chiarini, 2012).
Make or buy- Under this, management accounting is helpful for owners of small
organisations which goods and services they should in manufacturing unit in first place. Cost
accounting system gives better opportunities to take better decisions related to outsourcing as
well as production. It is helpful in make improvement of profit of company.
Presentation of financial statement- Management accounting is helpful in gathering
various data and information which shows financial position of company. Various data and
2
Management accounting systems and their applications_4

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