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
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
INTRODUCTION Managementaccountingreferstoprovisionoffinancialadviceandadvicetoan 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 managementaccountingsuchascontrol,monitor,planandalsoincreasingemployees performance by make improvement of understand regarding various functions of departments. Definitions of management accounting 1
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 asa decisionmaking toolsrelatedto variousaspects. Some importanceof management accounting mention below: IdentificationofAim-Accordingtoinformationanddataavailable,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. Performancemeasurement-Budgetarycontrolstandardcostingisaneffective 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. Givebettermanagementcontrol-Managementaccountingtoolsarehelpfulfor 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
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