logo

Management Accounting INTRODUCTION 4 P2 Different Methods for Management Accounting Reporting In Advance Construction Group Ltd12 TASK 414 P5 Cost and Absorption Techniques

18 Pages5947 Words216 Views
   

Added on  2020-01-28

About This Document

Management Accounting INTRODUCTION 4 TASK 14 P1 Management accounting and essential requirements of different types of systems of management accounting 4 P2 Different methods for management accounting reporting 6 TASK 28 P3 Calculation of cost absorption using margin and marginal cost techniques8 TASK 312 P4 Advantages and disadvantages of planning tools used in budgetary control in case of Advance Construction Group Ltd12 TASK 414 P5 Comparison between organisation for adapting management accounting system to respond financial problems 14 CONCLUSION 16 REFERENCES 17

Management Accounting INTRODUCTION 4 P2 Different Methods for Management Accounting Reporting In Advance Construction Group Ltd12 TASK 414 P5 Cost and Absorption Techniques

   Added on 2020-01-28

ShareRelated Documents
Management Accounting
Management Accounting INTRODUCTION 4 P2 Different Methods for Management Accounting Reporting In Advance Construction Group Ltd12 TASK 414 P5 Cost and Absorption Techniques_1
Table of ContentsINTRODUCTION...........................................................................................................................4TASK 1 ..........................................................................................................................................4P1 Management accounting and essential requirements of different types of systems ofmanagement accounting..............................................................................................................4P2 Different methods for management accounting reporting.....................................................6TASK 2............................................................................................................................................8P3 Calculation of cost using absorption and marginal cost techniques......................................8TASK 3..........................................................................................................................................12P4 Advantages and disadvantages of planning tools used in budgetary control in case ofAdvance Construction Group Ltd.............................................................................................12TASK 4..........................................................................................................................................14P5 Comparison between organisation for adapting management accounting system to respondfinancial problems.....................................................................................................................14CONCLUSION .............................................................................................................................16REFERENCES..............................................................................................................................17
Management Accounting INTRODUCTION 4 P2 Different Methods for Management Accounting Reporting In Advance Construction Group Ltd12 TASK 414 P5 Cost and Absorption Techniques_2
INTRODUCTIONManagement accounting can be defined as the process by which mentioned entities cananalyse statements of finance and management which helps in giving detailed description of thefinancial position of the entity, which may be required by various stakeholders of the entity. It isbasically a profession which involves assisting in administration decision making, planning andsystems for management of performance, and giving support in financial report and control so asto assist administration in strategy implementation and formulation (Fullerton, Kennedy andWidener, 2014). Managers use this accounting provisions for getting information before takingdecisions in the organisation, which helps in the performance and management of functions. Thisreport is based on the case study of Advance Construction Group Ltd is a construction companyin Scotland, it carries out business of civil engineering and dynamic groundwork. It has a goodreputation in industry which provides excellent workforce. In this report a detailed description isgiven on management accounting and necessary requirement of different systems ofmanagement accounting is given. This study will help in providing various methods ofmanagement accounting, advantages and disadvantages of budgetary control planning tools.Reports which are prepared on the basis of management accounting helps in showing whatamount is available with entity and also the profit which is generated from sales. TASK 1 P1 Management accounting and essential requirements of different types of systems ofmanagement accountingManagement accounting can be defined as the analysis, sourcing, use and communicationof various decisions which are related with the financial as well as non financial information soas to preserve and generate value value for entity. It combines finance, accounting, andadministration with the skills and techniques of business which will be needed to add value inany entity (Talha, Raja and Seetharaman, 2010). Management accounting work in the entirebusiness and not just in giving advise to managers, finance and implications of importantdecisions, formulation of strategy of business and in risk monitoring. It uses all kinds ofinformation and not just related to finance so as to lead mentioned entity towards success.Marginal costing and absorption are some of the tools and techniques of cost accounting by
Management Accounting INTRODUCTION 4 P2 Different Methods for Management Accounting Reporting In Advance Construction Group Ltd12 TASK 414 P5 Cost and Absorption Techniques_3
which mentioned entity prepare efficient and effective strategies for the maintenance ofproductivity. There are various systems of management accounting which are very helpful indevelopment of Advance Construction Group Ltd. Management accounting helps in reducingexpenses of various operations . It is used by owners of business for reviewing cost of operationsof business and economic resources which are used by the entity. It helps in better understandingof how much money will be required to run business (Hiebl, 2014). It can also be used toconduct several analyses on resource quality which are used for the production. Managementaccounting system helps in improving cash flow, as budget is the important part of it. Businessowners generally use budget so that the full analysis of financial map will be there for theexpenses of business in future. It helps in creating master budget for the company and will helpin careful analysis of useful and not so useful expenses. It helps in taking several businessdecision based on analysis of quality and quantity and many more. It will also help in increasingfinancial returns. Management accounting can prepare forecast report related to finance forcustomer demands, sales. It can be used by the business owners so as to make sure how muchamount of goods and services should be produced to satisfy customer (Dillard and Roslender,2011). There is an essential requirements of management accounting system for various purpose.These essential requirements can be like :Traditional Management Accounting: This type of management accounting system isnecessary as it focuses on cost as a means of job order and ways of process costing. Withthe help of this method, Advance Construction Group Ltd will be able to allocate severaltypes of cost which is related to labour, material and manufacturing. Traditionalmanagement accounting system is very helpful and necessary for entity. Technique of joborder costing is used in construction industry that has large projects. So in such casesseveral types of cost are easy to trace and mentioned entity can allocate them easily in therespective project. Techniques of process costing helps in allocating cost to severalprocesses (Contrafatto and Burns, 2013).Lean Accounting: Lean accounting is the term used in the cited entity for therequirement of changes related to control, accounting, management and measurement tosupport lean thinking and manufacturing. It is revolutionary because it not only
Management Accounting INTRODUCTION 4 P2 Different Methods for Management Accounting Reporting In Advance Construction Group Ltd12 TASK 414 P5 Cost and Absorption Techniques_4

End of preview

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

Related Documents
Methods of Management Accounting Report
|20
|5645
|343

Uses of Management Accounting in Business
|18
|5804
|41

Management Accounting Systems and Techniques
|19
|5142
|100

Management Accounting of Base Build Services Ltd | Report
|18
|6103
|135

Management accounting Assignment
|19
|5256
|335

Management Accounting: Techniques and Applications
|10
|2473
|53