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Management Accounting Principle: 6 Integrate in organization: 6 Its role was just informed search

   

Added on  2020-12-01

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Management Accounting

Table of ContentsManagement Accounting:...........................................................................................................................5Management Accounting System:...............................................................................................................6Integrate in organization:............................................................................................................................6Origin:..........................................................................................................................................................6Its role was just informed search (mclany, 2009)........................................................................................6Management Accounting Principle:............................................................................................................6Credibility....................................................................................................................................................7Aggregation.................................................................................................................................................8Efficient behavior.........................................................................................................................................8Reporting Focus...................................................................................................................................8Proven Information.....................................................................................................................................8Reporting Focus...........................................................................................................................................8Standards....................................................................................................................................................8System.........................................................................................................................................................8Timing..........................................................................................................................................................8Valuation.....................................................................................................................................................9Management Accounting Process...............................................................................................................9Cost accounting System...............................................................................................................................9Inventory management.............................................................................................................................10These are the few types of managerial account system............................................................................10Micro Economics techniques:....................................................................................................................11Cost :..........................................................................................................................................................11Cost Analysis..............................................................................................................................................11Cost Volume profit:...................................................................................................................................11Price Costing:.............................................................................................................................................13Fixed costing..............................................................................................................................................13Variable costing:........................................................................................................................................14Normal Costing:.........................................................................................................................................14Standard Costing:......................................................................................................................................14Inventory Cost:..........................................................................................................................................14Types of Cost Inventory:............................................................................................................................15

Cost inventory:..........................................................................................................................................15Types of inventory cost System:................................................................................................................15Benefits of reducing inventory cost...........................................................................................................15Material cost.............................................................................................................................................15Material Maintenance:..............................................................................................................................16Price of competitive:.................................................................................................................................16Increase profit...........................................................................................................................................16Budget.......................................................................................................................................................16Operating Budget:.....................................................................................................................................16Incremental Budgeting:.............................................................................................................................17Activity based budgeting:..........................................................................................................................17Value proposition budgeting:....................................................................................................................17Zero based budget:....................................................................................................................................17Flexible Budgeting Method........................................................................................................................17Pricing:.......................................................................................................................................................18Pricing Strategy..........................................................................................................................................18Common Pricing Strategy:.........................................................................................................................18Plus Cost price...........................................................................................................................................18Budget controlling process:.......................................................................................................................18Advantages:...............................................................................................................................................19Getting Maximum Profit............................................................................................................................19Coordination:.............................................................................................................................................19Performance Measurement Tools.............................................................................................................19Expenses....................................................................................................................................................19Consciousness...........................................................................................................................................19Incentives:.................................................................................................................................................19Limitations in budget controlling:..............................................................................................................19Future uncertainty.....................................................................................................................................19Budget revision:.........................................................................................................................................19Reduce efficiency:......................................................................................................................................20Problem in coordination:...........................................................................................................................20Interdepartmental conflicts:......................................................................................................................20Top Management dependent:...................................................................................................................20

Costing System:.........................................................................................................................................20Actual Costing System...............................................................................................................................20Affinity Diagram.........................................................................................................................................20Tree Diagram:............................................................................................................................................21Inter relationship Diagram:.......................................................................................................................21Matrix Diagram:.........................................................................................................................................21What is PEST?............................................................................................................................................21SWOT:........................................................................................................................................................21Bench Marker:...........................................................................................................................................22Key Performance indicator:.......................................................................................................................22Financial key performance:.......................................................................................................................22Non-Financial Key performance:...............................................................................................................22Importance of KPI:.....................................................................................................................................23Budget target:...........................................................................................................................................23Finance Governess:...................................................................................................................................23Monitoring strategy...................................................................................................................................24Accounting Management..........................................................................................................................24Leadership:................................................................................................................................................24Experiences:..............................................................................................................................................24Communicating Skills:................................................................................................................................24Management of Knowledge:.....................................................................................................................24Organizations:...........................................................................................................................................24Managing Time:.........................................................................................................................................24Reliance:....................................................................................................................................................25Delegates:..................................................................................................................................................25Be Confident:.............................................................................................................................................25Employees respect:...................................................................................................................................25Conclusion:................................................................................................................................................26Reference:.................................................................................................................................................26

Introduction:In this project we mainly discuss about management accounting, management accounting principles and management accounting process. In task 2 we learn about microeconomics techniques, cost analysis, inventory cost and types of inventory cost system. In task 3 we discuss we budget, common pricing strategy, and performance management tools. In task 4 we learn about bench marker importance of KPI communicating strategies, budget targets, and important techniques of managementsTask 1Management AccountingManagementaccounting is type of establishing activities, evaluating, accessing, interpreting and transmitting information to managers. Management of accounting includes all policies aimed at remaining management. It used information relating at cost of goods or offers that company purchases. Budgets used to calculate decisions in the well-disciplined form of organization. Management accounting uses it efficiently.Reportsshowingvariancesinrealoutcomesfrombudgets.Thekeydistinctionbetweenmanagementandfinancial accounting is used for calculating the finance of statements.Whereas management accounting to keep an eye on company transactions.

Management Accounting System:Internal accountingmanagementsystemsdoes not used to giveimportantmanaging knowledgefor the decision-makingofoperationalbusiness.A company that manufactureuse the systeminassistin costing and management of their process. [Peshori, Kishore 2015]The hospital can use management system to assist Them along with for insurance other in house billing requirement.This system differentwithin industries to provide functions Integrate in organization:Management accounting letsadministratorswithinanorganizationmakechoices.It is also known as cost accounting,managementaccountingthat is method of defining evaluating,interpretingandtransmitting facts to administratorsin helpingaccomplishcompanyobjectives.Bothaccountingareascoveringtheadministrationofcorporateactivitiesrelatedtotheexpenseofgoodsorservicesobtainedbytheorganisationshallbeincludedinthedatagathered (Research Report No. R-1428-08-RR).Accountantsusebudgetstocalculatethecorporatespendingschedule.Thereportonsuccessisusedforobservingthedisparitybetweencurrentoutcomesandtheexpectedresults.Origin:Its role was just informed search [ CITATION mcl09 \l 1033 ]This website of the institute of management accountant describe management accounting as“A profession that involves partnering in management decision making, planning and performance management system”.Management Accounting Principle:1. Influence :Communication provides a vital perspective. Communication is beginning and end of accounting administration. It enhances decision-making by having the necessary insight into all decision-making processes. Sound exchange of vital knowledge allows management accounting to intersect silos and facilities an interconnected thinking process process. The effects of steps taken in onecompany divide on the other divide can be readily interpreted, accepted or altered.It is also easier to create and analyses the most important knowledge when addressing the criteria of company decision-makers. It means that it is necessary for the decision maker to make recommendations and to obtain influence.2. Plausibility:For everybody, knowledge is important. Management accounting tests for the best possible information services, important to the decision made by the people who decide themselves Itneedstoachievearightbalance:Present,currentandfuture-relatedinformationForeignandinternaldata. Financialandnon-financialinformation,forexampleenvironmentalandsocialproblems

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