logo

Management Accounting Assignment: ABC LTD

   

Added on  2021-01-03

15 Pages4648 Words58 Views
Management accounting
Management Accounting Assignment: ABC LTD_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1LO1..................................................................................................................................................1P1- Explaining management accounting and its essential requirement in the context ofbusiness operations.....................................................................................................................1P2 Assessing different management accounting reports and its integration with organizationalprocess.........................................................................................................................................3LO2..................................................................................................................................................4P3 Preparing income statement using marginal and absorption costing system.........................4LO3..................................................................................................................................................6P4 Advantages and disadvantages of budgetary control techniques...........................................6LO4................................................................................................................................................10P5 Presenting how management accounting tools can be used for solving financial problems...................................................................................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
Management Accounting Assignment: ABC LTD_2
INTRODUCTIONManagement accounting is accounting process which is used for internal purpose. It helpsto provide information which is used by manager to take effective and prepare appropriatepolicies so that company will achieve short term goals and long term goals. Usage of thisaccounting to make planning and controlling of the business operation that is essential forenhance profits and growth of the company. Present reportis based on ABCLTD which ismedium size company and is engaged in manufacturing process and provide goods and servicesto their customers. Present report includes concept of management and requirement of different type ofmanagement accounting system. It will also include methods of management accounting reportwhich is prepared by ABC medium size limited company. Further, report comprise advantageand disadvantages of planning tool of budgetary control and their application for preparingforecasting budget of the company which is required for sustainable success by solving financialproblem. MAIN BODYLO1 P1 Explaining management accounting and its essential requirement in the context of businessoperations Management accounting is the process of accounting that provide information to managerin such way that useful for planning, decision making and formulating policies and controllingoperations of the company. This accounting isonly used for internal purpose and provideinformation regarding monetary and non-monetary. Managerial accounting is not regulated byany rules and regulation and there is not any requirement to present statement of the company.This accounting work to manage such area like risk management that help to manage risk fromfuture circumstance like change interest rates and inflation rate. Manager improve performanceof the company by evaluating employee's performance and prepare strategy that would beincrease in profit margin..ABC limited ismedium size company whichadapt different type of job accountingsystem that play crucial role within organisation that helps in minimizing cost on per productionand manage the job costing. Medium enterprise follow management accounting system such asjob costing, cost accounting, inventory management and price optimization.1
Management Accounting Assignment: ABC LTD_3
Job costing- it is the process of job accounting that track the revenue generate and costoccur job by job then analysis the standard profitability generated by job. Job costing helps toanalysis the direct material, direct labour and direct expenses require in job then allocating theresources. ABC ltd Company can keep records of performance of individual and team in terms ofcost effectiveness that helps to make money and also ensure about the specific job that continuein the future. Pros –Company can ascertain cost of each job completion also analysis job cost from the pastdata and helps to controlling the cost.It helps to compare previous years’ job cost with recent job executed.Cons-Job costing is expensive and have no standardised form because this costing needsupervision.On the time of inflation, comparison of job cost become meaningless for company.Cost accounting-It helps to measure cost of product by assessing fixed cost and input costoccur in each production level. Cost accounting includes direct cost such as direct material,direct labour and direct material and overheads like selling and administration cost. Thisaccounting system is essential to ABC medium limited company it provides information tomanager that helps to control cost and take planning for future that will helps to increase,customer retention and generate revenue of the company.Pons- Company can control the cost of product and fix price by cost accounting system.It also helps to prepare financial statement that shows position of the company. Cons-Manager will not able to take future decision because cost recorded on basis of pastyears. Inventory management-it is the process of managing the inventory quantity, carrying costand ordering, lead time in such way cost can be minimise and provide quality goods to customeron the time of demand. It is useful for smooth running of business operation and protect andprevent from fluctuation in demand. It mainly used to enhance efficiency and decision makingregarding inventory management.2
Management Accounting Assignment: ABC LTD_4

End of preview

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

Related Documents
Management Accounting And Its Applications
|7
|1551
|160

Management Accounting - ABC Limited company
|16
|5995
|143

Management Accounting & Essential Requirements
|18
|5993
|200

Management Accounting Systems- Doc
|18
|4562
|317

(Solution) Management Accounting System: PDF
|17
|4826
|494

Management Accounting Assignment - ABC Ltd.
|18
|5496
|64