logo

Management Accounting Assignment - Captify company

14 Pages3963 Words336 Views
   

Added on  2020-10-23

Management Accounting Assignment - Captify company

   Added on 2020-10-23

ShareRelated Documents
Management Accounting
Management Accounting Assignment - Captify company_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................11. Management accounting and its essential requirement of the management accountingsystem..........................................................................................................................................12. Explaining different methods of the management accounting reporting................................3LO 2.................................................................................................................................................53. Preparation of income statement using different management accounting techniques..........5LO 3.................................................................................................................................................64. Explaining advantages and disadvantages of various planning tools of the budgetary controlsystem .........................................................................................................................................75. Explaining various management accounting system as to help the company in respondingto various financial problems......................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
Management Accounting Assignment - Captify company_2
INTRODUCTIONManagement accounting is a branch of accounting that is concerned with providing allthe relevant information to the managers of the company. It is a process which requiresprofessional skills of the accountants so that they can provide all the relevant financialinformation to the managers and helping them in their decision making procedure. Captify is amiddle sized manufacturing company of UK. It was established in 2011. The present assignmentshows a report of an assistant accountant of the Captify, that provides a brief information aboutthe management accounting its essential requirement in the business along with the benefits ofvarious management accounting systems and their applications within the business. Further, thestudy also shows numerous methods to be used for the management accounting reporting. Anexplanation about various planning tools of the budgetary control system and about adoption ofvarious management accounting system and their usefulness in the business as to resolve variousfinancial problems of the company. In addition, the study also shows preparation of the incomestatement of the company using different techniques of the management accounting LO 11. Management accounting and its essential requirement of the management accounting systemCaptifyTo,the line manager, subject: For providing information about the role and functions of management accounts department.Management accounting“The management accounting system can be defined as a process of analysing the costand financial activities of the business and preparing financial reports from those informationsas to help the managers in taking their decisions relating to the cost and financial activities ofthe business, as to strengthen the financial capacity of the business. (Otley, 2016)” In other words, it can also be defined as a systematic procedure through which thebusiness can develop effectiveness and efficiency in the business as to make the best use of thefinancial resources like cash, inventories, etc. of the business.”Management accounting system“Management accounting system refers to a process in which the financial managers1
Management Accounting Assignment - Captify company_3
analyse and evaluate all the financial activities of the business and prepares a detailed reportthat can provide all the detailed information to both internal and external users of the company.”There are various management accounting systems like cost accountingsystem,inventory management system, job costing system, etc. that can be adopted by thecompany for the purpose of developing effectiveness in the overall business organisation. Essential requirements of management accounting system Cost accounting system: Cost accounting system is that type of managementaccounting system that helps the overall business in estimating the cost to be incurred bythe business and determine the actual cost of the business as well. This system helps thecompany in developing the cost effectiveness in the overall business operations. Thissystem is required by the those business that are engaged in manufacturing products orrenderning services to the customers. Requirements▪This system helps the business in making the company more cost effective.▪It helps the managers in having effective analysis of the cost related activitiesand develop more strong strategies for the company accordingly. ▪With the help of it, company can determine the cost incurred by the business formanufacturing each product or rendering each services to the customers (Maas,Schaltegger and Crutzen, 2016). In this regard, the firm can determine theappropriate price of the product or services. ▪Further, this system also helps the managers in predicting the requirement ofresources in the firm in the near future. With the help of which they can maintainsufficiency of the various financial resources of the business. Inventory management system: Inventory management system can be defined as aprocess of management in which they monitors the usage of inventories of the businessand develop strategies and plans for the business. This system helps the managers indeveloping effectiveness in the business for using its inventories. This system is Usefulfor those businesses that needs to maintain the inventories either for the furtherprocessing and manufacturing goods or for their further sale. Requirements2
Management Accounting Assignment - Captify company_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Requirements of Management Accounting Systems
|21
|5731
|102

Management Accounting and Its Methods - Assignment
|17
|4860
|281

Management Accounting Solution Assignment - Galway plc
|14
|5174
|45

LO 1 1 Management accounting and essential requirements
|21
|5695
|223

Management Accounting System Features - Doc
|18
|4313
|52

Unit 5 – Management Accounting - Assignment
|20
|5074
|273