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Management Accounting - Advantage and Disadvantage

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Added on  2020-10-22

Management Accounting - Advantage and Disadvantage

   Added on 2020-10-22

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Management Accounting - Advantage and Disadvantage_1
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK1.............................................................................................................................................1P1. Different types of management accounting system..............................................................1P2. Different method used for management accounting reporting.............................................2M1 Benefits of different management accounting system..........................................................4D1 Combination of management accounting system and its reports in organisationaloperation......................................................................................................................................5TASK 2 ...........................................................................................................................................5P3. Appropriate techniques of cost analysis..............................................................................5M2 Range of management accounting techniques and produce appropriate financial reportingdocuments...................................................................................................................................7D2 Interpret data for a range of business activity.......................................................................8TASK 3............................................................................................................................................8P4 Advantages and disadvantages of different types of planning tools for budgetary control...8M3 Use of planning tools while forecasting and estimating budgets.......................................10TASK 4..........................................................................................................................................11P5 Financial problem and accounting system to responses......................................................11M4 How planning tools help to deal financial problems..........................................................12D3 Planning tools for solving financial issues..........................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................14
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INTRODUCTIONManagement accounting refers to the process of identifying, classifying, collectingcrucial information related to business activity and reporting these information in accountingstatements that is useful for manger to make effective decision. System of managementaccounting are helpful that help in future planning and assets to compare and improveperformance of company (Dražić Lutilsky and Dragija, 2012). Management accounting also helpin measuring various aspects such as investments decision or conclusion to buy or produce aproduct. It help management of companies to collect, monitors, identify and analyse informationthat assist to form policies and strategies which help in achievement of financial goal. It also helpcompanies to resolve various financial problem that may arise in the organisation. So, tounderstand the importance of management accounting Airdri is selected. It produces luxury handdryers which was founded in 1974 and one of the small scale company in UK.The main aim of this project is understand the importance of management accountingand its system to the chosen organisation. Manager of companies applies various managementsystem and report to to maintain stability in company. They adopts various costing method tocalculate net profit and different planning tool which are helpful in maintaining budgets. Projectfocus on different accounting approaches to overcome problem of finance within Airdi.TASK1P1. Different types of management accounting system.The practices of collecting important financial information and developing reports byinternal manager that help them in decision making and identifying different approaches to runcompany more efficiently is known as management accounting. There are basically various typeof management accounting system that help companies to improve performance, planned forfuture and control its operation. It also assist to forecast different future situation with the help ofpast experience and develop short and long term financial strategies. In Airdri, manager followsdifferent system of management accounting to evaluate and analyse information related to costperformance, inventory and job (Fisher and Krumwiede, 2012). Theses system are describedbelow. Cost accounting system: According to this system companies are can analyse, compareand improve its profitability by figuring actual cost of their product. This system help
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