Advantages and Disadvantages of Budgetary Control Planning Tools

Management
accounting
Table of Contents

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain management accounting and give the essential requirements of different types of
management accounting systems.................................................................................................3
P2 Explain different methods used for management accounting reporting.................................6
TASK 2............................................................................................................................................7
P3 Calculate costs using appropriate techniques of cost analysis to prepare an income
statement using marginal and absorption costs...........................................................................7
TASK 3..........................................................................................................................................12
P4 Explain the advantages and disadvantages of different types of planning tools used for
budgetary control.......................................................................................................................12
TASK 4..........................................................................................................................................14
P5 Compare how organizations are adapting management accounting systems to respond to
financial problems.....................................................................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
Books and Journals:...................................................................................................................17

INTRODUCTION
Management accounting is the procedure of accounting system that provided detail
structure and documents of accounting information using through various tools and techniques.
Management require the operation's of planning functions and in accordance with that collection
of resources and makes its fuller utilisation. However, accounting system consist the same role as
a part of management function. It plans the cost, expenditure, incomes and reserves into
systematic manner. Involving appropriates accounting standard helps in retention of employees
and attracting shareholders towards organisation profitability and accuracy. It helps in
identification of financial and non financial data of the organisation that provide assistance to the
managers in making decisions regarding finance sources, keeping records, data entry and
comparison between past and present growth (Ravenda and et.al., 2019). According to the
provisions of CMA cost management accounting system, country like London involves
accounting as a term of making policies and strategies top look at organisation glow of monetary
elements and at which source. This report is going to consist role of management in accounting
standard in the context of western food limited, it is a medium scale enterprise in London UK.
The company has manufacturing concern into food products. It has taken into consideration all
the counting measures for the enterprise to attract shareholders and enhance expansion.
TASK 1
P1 Explain management accounting and give the essential requirements of different types of
management accounting systems.
Management accounting is a appropriate system of identifying, analysing, recording and
deciding the financial outcome of the company. In involves managers decision making regarding
needs of financial funding and capital investment into the organization. Management accounting
provides an initial structure of techniques to record transactions on daily basis, prepare
statements and take decisions regarding buying investments. In carries out the activity of
preparing statements and records to gather wide data into one single documents, these data are
collected for stakeholders preferences as it work as a proof of companies profitability into
market. The documents show organisations potential in order to stand against competitive
market.

There are two main source of accounting process but are differentiated from each other.
The most popular function is managerial accounting as it is broadly used into the context of
organisations purpose.
Basis Managerial Accounting Financial Accounting
Content Financial and non-function
both the aspected is related
with this accounting.
This function only focus on
financial criteria. As it is its
main purpose.
Uses and Purposes The function in integrated and
executed by the stakeholders
within the organisation to take
proper decisions regarding
both the aspect (Forghani, and
Tavasoli, 2017).
This function based on
stakeholders interest into
organisation function by
knowing information
regarding financial position of
the company.
Rules, Regulations and Laws This process does to involve
any provision of eyes of law
because it is used for internal
purpose only to make records
and data for their self use.
This process has affected by
many rules and regulations of
law that is needed to taken into
concern for financial mangers
while preparing reports.
Auditing It is a function in part of
accounting system to analyse
and check the performance
through reports and data
collected in figures in order to
take effective measure so that
problems would get overcome
and organisation sounds
profitability.
This function indulge auditing
through outsiders through
chartered accounts. They go
through with all the records
and ensure about its
creditability into market. So
that, the company will not lack
with any legislation of laws
work under accounting
regulations.