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Accounting System for Management Accounting Reporting

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Added on  2020-07-22

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Management Accounting association FROM: MANAGEMENT ACCOUNTING OFFICER 1 TO,1 GENERAL MANAGER 1 UNICORN GROCERY 1 SUBJECT:- MANAGEMENT ACCOUNTING SYSTEM 1 INTRODUCTION 1 TASK 11 P1 Concept of management accounting and types of accounting systems 1 P2 Different methods used for management accounting reporting 3 M1 6 D1 6 TASK 26 P3 Calculation of cost and prepare a income statement using marginal or absorption costing 6 M2 8 D2 8 TASK 39 P4 Advantages or disadvantages

Accounting System for Management Accounting Reporting

   Added on 2020-07-22

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Accounting System for Management Accounting Reporting_1
Table of ContentsFROM: MANAGEMENT ACCOUNTING OFFICER..................................................................1TO, ..................................................................................................................................................1GENERAL MANAGER..................................................................................................................1UNICORN GROCERY...................................................................................................................1SUBJECT:- MANAGEMENT ACCOUNTING SYSTEM ...........................................................1INTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Concept of management accounting and types of accounting systems.................................1P2 Different methods used for management accounting reporting.............................................3M1...............................................................................................................................................6D1................................................................................................................................................6TASK 2............................................................................................................................................6P3 Calculation of cost and prepare a income statement using marginal or absorption costing. .6M2...............................................................................................................................................8D2................................................................................................................................................8TASK 3............................................................................................................................................9P4 Advantages or disadvantages of various types of planning tools used for budgetary control.....................................................................................................................................................9M3.............................................................................................................................................11D3..............................................................................................................................................11TASK 4..........................................................................................................................................11P5 How organization are adopting management accounting system to respond towardsfinancial problems.....................................................................................................................11M4.............................................................................................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................14
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FROM: MANAGEMENT ACCOUNTING OFFICERTO, GENERAL MANAGERUNICORN GROCERYSUBJECT:- MANAGEMENT ACCOUNTING SYSTEM INTRODUCTIONManagement accounting is signifies as a financial information which is used bymanagerial group of an association in order to make corrective decisions within enterprise. Infact , it helps staff members or higher authority while financial planning process and duringdesigning strategies for controlling extra or unused costs (Albelda, 2011). Unicorn grocery is avery small enterprise whose main motive is to offer good items to their desired customers andbelieves in fulfilling their basic needs by manufacturing various qualitative products. Thisproject is going to categorized into various parts for explaining the usage or benefits ofmanagement accounting for entire corporate world. Initially, report will be shows various typesof financial system and report which is adopt by selected company while forming their strategies.Along with this, throw lights on suitable methods that is used by managerial groups to calculatevarious costs and design corrective income statement with the help of marginal or absorptioncosting. Advantages and disadvantages of methods used by company to control their budget isalso outlined in this project. Moreover, an organization is also using management accounting inorder to respond towards various financial problems in more efficient manner. TASK 1P1 Concept of management accounting and types of accounting systemsMeaning:- Management accounting is a term which means handling or regulatingvarious financial information in most appropriate manner in order to make impressive plan(Arroyo, 2012). Along with this their main objective is to control other expenses which isincurred in an enterprise while performing various business operation. Thus, this term ofbusiness entity falls under finance because it assist managers during allocating funds for various1
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department. Main objective of accounting system is to record expenditure which is going toincurred in an enterprise for gaining objectives of an association. Definition:- It is an appropriate process of formulating various accounting reports orrecords which helps in providing accurate or reliable data to their managers who are responsiblefor making various decisions. Thus, management accounting represent information in numericalor statistical form that supports in estimating accurate fund for specific task. According toBecker, Messner and Schäffer,( 2010) administration of finance plays a major role in profitmaximization because it aids in highlighting hidden losses, costs which is incurred in anenterprise while accomplishing various business activities. Along with this, it also helpsmanagers while achieving several number of short term or long term goals. Thus, unicorngrocery is focussing on their accounting system for generating maximum revenue by controllingexpenses because it provides precise data related with day to day expenditure. Hence, financialinformation are expressed into various forms such as; journals entries, ledgers and budgets whichshows debited or credited amount with actual information. Consequently, it has been analysed that finance manager need these records whilemaking effective decisions for example; these data is very much essential or indispensable forinvestors or shareholders as it help them while making decision of investment. It meansmanagers of unicorn grocery is concerning about their profit or losses due to which they are toomuch attentive towards their accounting plans or strategies. As a result it supports them duringforecasting demand which helps them while manufacturing products at marketplace. At last ithas been analysed that management accounting system is very much significant for success of anassociation due to number of reasons which is described as follows:- Aids in attaining team targets:- As per this element it is assessed that statisticalinformation helps in forecasting demand of different customers which helps them whiledesigning products (Bennett Schaltegger and Zvezdov, 2013). As a result afterunderstanding the consumer needs an enterprise can easily satisfied their requirementswhich resulted attainment of goal in a minimum time period. Proper utilization of resources:- Financial team of an association supports whileallocating resources or assets to various department by highlighting their requirement.Thus, due to which managers get succeeded in minimizing losses of company. 2
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Making effective decision:- As per this term it aids managers while making decision fororganization by identifying necessary information or data. Accurate future estimation:- Another advantage is that accounting system can easilyestimate upcoming cost which aids them while allocating funds to several section or teamof an enterprise. Apart from this, it is identified that numerous types of accounting system are alsoavailable which is explained as under:- Cost accounting system:- As per this component, first and foremost responsibility ofmanagerial head is to monitor entire business operations in order to control it so that theyget succeeded in minimizing manufacturing cost (Bodie, 2013). Thus, supervisors ofunicorn grocery is using this strategy for controlling their production price for evaluatingselling cost as well as assessing stock. It means, these kinds of concepts are using forreducing wastage through which prices might be controlled which resulted in acquiringmore benefits. Inventory management system:- It aids in appropriate supervision of non-capitalizedreserves, assets such as stocks of a company. Generally their main activities is startedfrom manufacturing and ends with sales of produced items. For unicorn grocery it helpsin offering precise or detail data related with fresh or previous food products at that timeframe when it was kept in warehouses with the aim to sell. Job costing system:- It plays a very indispensable role in tracking cost of workers whichis utilized during manufacturing process. Mainly, order cost in greatly affects in thiscircumstances in which products are fully uplifted from one another. Thus, by using thismethod selected firm get aware about actual price of labour or a person job which isincurred while producing creative items for gaining maximum benefits (Boyns andEdwards, 2013). P2 Different methods used for management accounting reportingMeaning:- It is a term which means collection or storing of accurate information relatedwith statistical data in order to support business managers while decision making process. Alongwith this, it shows analyse data in a more systematic way by considering relevant facts or figures.In fact, it is a formal process which is follow by entire association in order take correctivedecisions for attaining set goals of an enterprise by satisfying needs of distinct customers. 3
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