Management Accounting and Cost Analysis Techniques in Connect Catering Services

Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1.................................................................................................................................................1
P2. ...............................................................................................................................................2
M1. ..............................................................................................................................................4
D1. ...............................................................................................................................................5
TASK 2............................................................................................................................................5
P3. ...............................................................................................................................................5
M2. ............................................................................................................................................10
D2. .............................................................................................................................................10
TASK 3..........................................................................................................................................11
P4...............................................................................................................................................11
M3..............................................................................................................................................12
TASK 4..........................................................................................................................................13
P5...............................................................................................................................................13
M4..............................................................................................................................................14
D3...............................................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
According to institute of cost and chartered accountants defined as the utilization of
financial information and helps to take a business decision properly and assist the management to
formulate policies and planning control. (Abednazari, 2018). In this, managers settle their
financial information for internal members in enterprise so that they can make day to day
transactions easily. This report is based on pearl chartered accountant firm in UK and one of the
main client is connect catering services.
Various topics are covered in this report such as necessary requirements of different
kinds of management accounting schemes, various methods are used in management accounting
report, set up a income evidence for calculating marginal costing and absorption costing, various
kinds of planning instrument that are utilized in budgetary control and their benefits, limitations
comparing two organisations that are adjust of management accounting in state of financial
difficulty.
TASK 1
P1.
Management Accounting: As per view point of Barth (2018), management accounting
is process of analyzing, measuring, collecting and provides financial information in an
effectively and efficiently manner. Their purpose to help manager in decision making procedure
and provide all information related to firm for analyzing each and every products, activity and
service. Within Connect Catering Services, managers uses this type of accounting because it is
very effective procedure for company not only they helps mangers to take business decision but
help to achieve financial goals and objectives in enterprise.
Management Accounting System: The Concept of management accounting system
deals with internal system in organisation and evaluate result for internal members in enterprise.
To identify internal budgets, income and expenses, and recognize sales analysis. In case of
Connect Catering Services, this system help managers to make a decision on the basis of internal
members in organisation and achieve operational efficiency of entity. Various essential
requirements are used in management accounting system in case of Connect Catering Services
are as under:
1

Price Optimization System: According to this system, it determine price level of several
products and services that will impact on profits (Bauchadze, 2018). Within Connect Catering
Services, managers used this system because it helps to accomplish their goals and when they
maximize their profit then firm may increase their prices.
Essential requirements of price optimization system are used to decide their pricing
strategies like how targeted customers will react to changes in price level. To check market
conditions, promotional strategies and maintain customer satisfaction.
Inventory Management System: The concept of this system is said to be that storing of
some stocks and track those goods from manufacturer to vendors. Inventory management system
includes raw materials, work in progress and finished goods. With reference to Connect Catering
Services, firm maintain each and every stock so that they can recognize price of every product.
Transportation facility and inventory storage facility are there and customers want that item can
be delivered on time to time.
Essential requirements of inventory management system are that they meet customer
demand and it impact every firm include to provide accurate data and reach their goods from one
place to another place. They determine how much data are available in storage and placed at
right place and right people.
Cost Accounting System: In this, cost accounting recognize each and every cost are
associated to their product cost for profitability and provide a services of all expenses. There are
two kinds of accounting system are job order costing and process costing (Birt and et. al., 2018).
With context of Connect Catering Services, It is a record of all production activities that need to
be track the flow of stocks through several phase of production.
Essential requirements of cost accounting system are data should be in a accurate form,
it should ensure to give proper raw materials, direct labor and direct overheads. They can
identify proper cost are associated with each and every individual.
Job Costing System: According to this system, all accurate information related to each
and every cost are associated with a particular job. In case of Connect Catering Services, firms
used this cost because it determine how many cost are associated with various business activities
and maintain a customer accounts on a daily basis every day.
2