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Management Accounting Assignment PDF - Airdri

   

Added on  2021-02-19

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ManagementAccounting
Management Accounting Assignment PDF - Airdri_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting and its requirement of different types of management accountingsystem..........................................................................................................................................1P2 Different methodologies employed used in management accounting reporting...................2M1 Benefits of management accounting system........................................................................4D1 Management accounting system and accounting reports are integrated withinorganisational processes..............................................................................................................4TASK 2............................................................................................................................................4P3 Calculations of costs using appropriate techniques to prepare income statement.................4M2 Different techniques of management accounting system ....................................................7D2 Interpret data for a range of business activities.....................................................................8TASK 3............................................................................................................................................8P4 Advantage and disadvantage of different types of planning tools used for budgetary control.....................................................................................................................................................8M3 Uses of different planning tools and their application for preparing and forecasting budget...................................................................................................................................................10TASK 4..........................................................................................................................................10P5 Comparison of entity due to adapting management accounting systems to respond tofinancial problems.....................................................................................................................10Comparison between Airdri Financial and Brightstar..............................................................11M4 Responding to financial problems, management accounting can lead organisations tosustainable success....................................................................................................................12D3 Evaluate planning tools for accounting period to respond financial problems appropriately...................................................................................................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................14
Management Accounting Assignment PDF - Airdri_2
INTRODUCTIONManagement accounting is the process of accounting which is used to calculate the costof organisation (Bennett and James, 2017). It is the combination of management and accountingthat help to analysing the business cost and operations to prepare internal financial reports,records and account that help to manage the business activities. Accounting is technique whichhelp to give a correct calculation of accounting transaction. The main purpose of this report is tomake understand how to create and uses accounting information that help to make decisionindependently. To understand this, Alpha financial market consulting has been taken that ismedium size organisation. It serves clients operating in different sectors such as retail,manufacturing, hospitality and construction that provides important information for makingbusiness decision. The company provide suggestions to small manufacturing companies such asAirdri, J. Rotherham and other companies. This present report will be covered different topicssuch as planning tools and how it helps company to resolve financial problems. For completingthe report management accounting and its system also required to present. Moreover, reportdiscusses about different types of methods which is used to for management accountingreporting that can help to maximize the profits.TASK 1P1 Management accounting and its requirement of different types of management accountingsystemManagement accounting is the process of different activities where includes preparationand recording of financial and accounting transaction. Systems are used by managers to managethe accounts and make business decision. It helps management to keep proper records ofaccounts and make effective reports with the help to system. It gives a systematically view oftransaction and help to operate business successfully. This is adopted by business entity to assessthe actual performance and growth of business organisation. It is required to make decision andmaximize the profitability by focusing on transaction (Christ, 2014). In Airdri limited managersuses different types of management accounting system that is defined as: Inventory management system: This is most important management accounting systemwhich is used by firm to manage the inventory within organisation. It is mostly used inmanufacturing company to keep proper records of inventory and maintain the placing order of1
Management Accounting Assignment PDF - Airdri_3
raw material and finished goods. This accounting system assist to keep records of actual and realtime movement and different kind of inventory. Airdri company is using this system to keeprecords of inventory and maintain the productivity within organisation. It is beneficial formanufacturing company to adopt this inventory system because it will help to manage theinventory and also help to place next order of goods and services (Fullerton, Kennedy andWidener, 2014) .Cost accounting system: This means an accounting system that provide guidance tobusiness organisation for focusing on cost and increasing the profitability. It involves asystematic set of activities such as understanding, entering, analysing, classifying andsummarizing the cost of products and services. The main object is to use the cost in propermanner and enhance the cost efficiency that leads to increase the production. It helps to comparebetween actual and budgeted cost with the help to this system. It is required to keep the recordsof cost and use it effectively. In Airdri company managers uses this system and keep records ofincome and expenses within industry. It is used by all organisation to use cost and increase theprofitability.Price optimisation system: Price is the required in all organisation that help to maintainthe productivity or profitability. It creates a relationship among product and services byproviding at reasonable cost. Every organisation has aim to use optimize the prices of productsand services. This system helps to analysis and set the prices of goods and services. The managerof Airdri limited company uses this system to optimise the price that will help to maintain theprofits. The main object is to reduce the waste and optimize the prices for making decision. P2 Different methodologies employed used in management accounting reportingManagement accounting reports is a process of provide reliable and financial informationin detailed way. In every organisation, the management accounting reports are produced by thelower level manager to provide detailed information of company to the higher management. Themain purpose to prepare management accounting reports is to present an overall view of themanagement practices, policies and procedures on the basis of several organisational level for aspecific period of time. Airdri limited prepares these types of reports in order to provideinformation of varying nature to the top management (Hall, 2016). There are presented somereports which are prepared by an organisation - 2
Management Accounting Assignment PDF - Airdri_4

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