logo

Management Accounting - Airdir Ltd Assignment

   

Added on  2021-02-19

14 Pages3358 Words92 Views
MANAGEMENTACCOUNTING

INTRODUCTIONManagement accounting is the process of identifying, analysing, measuring, interpretingas well as communicating information to manager of company for pursuit goals. It is also knownas cost accounting and it is the information which help in taking better decision related tocompany (Anderson, 2017). Management accounting system is different from other type ofaccounting system because it include deep information related to monetary and non monetarytransactions. This assignment is based on Airdir Ltd. Which design and manufacture warm hairdryers, reliability and so on. They have 40 year experience within manufacturing industry. Thisreport will going to discuss different type of management accounting system . As well variousmethods utilise for management accounting reporting will going to be explained below. Alongwith, advantages and disadvantage of planning tool used for budgetary control. In the end costwill be calculated through appropriate technique for preparing income statements by usingmarginal as well as absorption cost. TASK 1P1 Management accounting is presentation of accounting information for formulatingpolicies which are adopted by the management as well as assist daily basis activities. In simplewords, it assist management in performing all functions including planning, organising, staffing,directing and controlling. Management accounting involve different type of accounting systemwhich play important role in different type of business firms. There are several accountingsystem which can be use by Airdri explanation of these are as follows :- Cost accounting system – This type of accounting system is also called product costingsystem or costing system (Butcher, 2019). It is framework utilise by companies forestimating cost of their products for valuation of inventory, profit analysis as well as costcontrol. Cost accounting system help in estimating cost of products which is importantfor organisation profitable operations. This will help company in controlling their costmanufacturing activities. Airdir hand dryer manufacturing can implement this accountingsystem within their working because it help in controlling cost of manufacturingactivities.

Inventory management system – It is type of accounting system which refer to propermanagement of stock such as raw material, finish goods and so on within organisation.With the assistance of inventory management system business firm can take decisionrelated to purchasing of raw material and future production. Because it help in identifyingavailability of stock within warehouses. Respective accounting system will assistcompany is identifying availability of raw material, finished goods and other decisionrelated to inventory. Such as in the Airdri hand dryer manufacturing Plc company canapply this accounting system within their working for evaluating availability of rawmaterial as well as finish goods within organisation. So that, they can order more ifrequired. Price optimisation system – It is an accounting system which assist in determining priceof products and services within effective level. Price optimisation system will help inanalysing reaction of customers at different price level (Dyckman and Zeff, 2015). Inaddition to this, when price optimisation system is absent within working of Airdri then itis difficult to identify right price of product. Thus, respective accounting system isimportant for organisation in finding right price of their product and services. Soimplementation of price optimisation accounting system by Airdri help in allocatingaccurate price of product and services within business firm. Job costing system – It is type of accounting system which help in determining cost ofjob at different activities separately. Job costing system is advantageous in providingdetail information related to cost of jobs as well as business firm can take appropriatedecisions related to job. Generally, respective accounting system play importantcontrolling cost of jobs (Essa, Dekker and Groot, 2018). In simple word, job costingmethod utilise within an industry as well as it utilise for checking that cost of productionexceed overhead and price of material as to provide profit for entire procedure. So,generally job costing system is applied by Airdir Ltd with the motive of evaluating jobcost that is allotted for different activities within business firm. P2 There are several method utilise for preparing management accounting report by businessfirm for managing their financial as well as non-financial performance. Thus, Airdir can prepare

End of preview

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

Related Documents
Management Accounting & Its Types
|16
|5106
|277

Management Accounting - Desklib
|16
|5250
|245

Management Accounting
|15
|987
|154

Management Accounting - Sample Assignment
|15
|3025
|26

Sample Assignment on Management Accounting (pdf)
|10
|2965
|388

Management Accounting and its Essential Requirement
|13
|3142
|105