Management Accounting Assignment : Airdri Limited
Added on 2021-01-03
17 Pages5440 Words91 Views
|
|
|
MANAGEMENT ACCOUNTING
Table of Contents
INTRODUCTIONManagement accounting is the part of accounting and it is continuous process of internalsystem to measuring and identifying financial information for managers. It is different fromfinancial accounting because management accounting related to internal system and financialaccounting related to external system(Ball, 2013). In internal system, reports and accountsprovide to top management for decision-making process and in external system; reports andaccounts are provided to outsider of the business. Because of these reports taking effectivedecision and invest further for gain more profit. In the particular report selected, company Airdrilimited, which is the first hand dryer manufacturer in the world. Business partners Peter Philippsand Peter Allen founded it in 1974. The aim of the report to find out financial data regarding toplanning and decision making to control finance in an organisation. The report focused onmanagement accounting systems and their essential requirements in the context of a companyand determine their benefits. Apart from define different management accounting reports, whichare integrated with organisational process. In addition, apply a range of management accountingtechniques to produce appropriate financial accounting documents. Define different planningtools, which are used in management accounting. TASK 1P1 Management accounting and their essential requirementsManagement accounting is the process to produce different financial reports to presentfinial statements of the company in front of two management, which can help to them indecision-making process. In these reports, provided information related to financial andstatistical information and provide on accurate and timely basis. Different types of management accounting system Management accounting system focused on observation and determination the effect ofmanagement decision (Bouten and Hoozée, 2013). An effective management accounting systemreaches into all sections of a business such as IT, finance, marketing, human resource, operationand sales. In managerial accounting both types data financial and non-financial which can help totop management in effective decision-making process. Different systems of managementaccounting applied in efficient manner to fulfil requirement of a company. There are mentioneddifferent management accounting systems - 3
Inventory management system – According to this system all business activities relatedto manufacturing on the inventory of a business are considered as the part of this system. InAirdri limited, it is enforced through the management in the subject to maintain all records aswell as their clients. The company has applied different inventory system in order to manage andcontrol stock level according to requirements these are LIFO, FIFO and AVCO. According toLIFO method last in first out method apply, it meant which stock come last, that should sale first.In FIFO method first in first out it mean which stock come first that was first sale. In AVCOmethod average cost method which material used on average basis of manufacturing process.The manager of Airdri limited apply FIFO method to manage all business activities and keep alldetailed records (Cadez and Guilding, 2012). Price optimization system – This system mainly used by manufacturing company inorder to know perception of different customer according to products and services. Based oncustomer feedback company has to set particular amount of their products and services.Management of Airdri limited has to apply this system to know actual price of their products andprovide financial services according to them. Best suitable price attract to customer for purchasetheir items, it will increase sale of company, and they are earning more profit and get success. Job costing system – The particular system applied by different organisation in order torecord performance of job of their specific customers... According to this system, the companyhas record all activities of their customers and decided how to provide product and services tothem. In Airdri, limited mangers follow all information, which is related to cost and specificproduction or other job. This information important to record to submit cost information under acontract where cost are reimbursed. With the help of this system measure accuracy of company'spredication system (Carlsson-Wall, Kraus and Lind, 2015). Cost accounting system –In the system used a particular framework for an organisationin order to predict the cost of their products as well as profitability which is related to operatingactivities in the subject to evaluate total expenses which are faced by company to deliver aservice. In Airdri limited applied cost accounting system to keep record of accomplishment ofeach product and services, which is manufacturer by company and sale out to their customers.The particular system followed by company for providing valuation of different products andknow about cost control. It is categorised into two parts first one in job order and second processcosting.4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Sample Assignment on Management Accounting (pdf)lg...
|10
|2965
|388
Management Accounting - DSA manufacturing Assignmentlg...
|17
|4367
|53
Management Accounting Systems and Methodologieslg...
|16
|3606
|67
Management Accounting and Reporting System for Prime Furniturelg...
|18
|4224
|38
Unit 5 Management Accounting Level-4lg...
|18
|4321
|69
Unit 5 – Management Accountinglg...
|17
|3845
|69