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Management Accounting Report - Unicorn Grocery

   

Added on  2020-06-04

23 Pages5074 Words47 Views
MANAGEMENTACCOUNTING

Table of ContentsINTRODUCTION...........................................................................................................................2TASK 1............................................................................................................................................3P1 Various management accounting system..........................................................................3P2 Various method for management accounting reporting....................................................6TASK 2............................................................................................................................................9P3 Income statement and difference between marginal and absorption costing....................9TASK 3..........................................................................................................................................13P4 Merit and demerit of many kind of planning tools which is used in budgetary control.13TASK 4..........................................................................................................................................17P5 Adopting management accounting system for responding financial troubles................17CONCLUSION..............................................................................................................................18

ReportFrom: Management accounting officerTo: General ManagerSubject: To write a report to General Manager which is going to cover both managementaccounting as well as management accounting system with distinguish costing techniques andreporting to enable firm implement them.1

INTRODUCTIONManagement is an essential component in every business activity through which all goalsand targets get ascertain in an effective manner. Organisation have to relate their managementwith accounting process so that they become able to make business operations feasible in natureand control all sort of cost as well properly (Cokins, 2013). Management accounting define as aprocess through which managers of a company make appropriate record of all kind of expenseswhich are taking place while manufacturing their products and minimise all risk factor as wellwhich arise in short term context. This project is based on Unicorn grocery which is one of afinest association of retail industry. Managers have to keep proper records and analyse books ofaccounting in every quarterly, weekly and monthly basis and prepare reports as well so thatunnecessary cost get minimise and control. This report is going to describe difference amongstmarginal as well as absorption costing. Along with this, by using various tools of managementaccounting system firm can easily face issues regarding finance and solve them immediately.2

TASK 1P1 Various management accounting systemIn past times, it was easy to do a business for an individual as they need to determinemanufacturer of item and then sell it at marketplace. As time passes, this procedure get complexbecause of implementation of new or unique tools and methods in business (Lavia López andHiebl, 2014). In recent era, it is required for an enterprise to comprehend significance ofmanagement accounting as this will assist them to manage firm and their activities effectivelyand efficiently. Therefore, it is like a process where an employer try to determine as well asexamine both type of data i.e. financial and other is non financial. As a result, company canutilize their resources in an appropriate manner because this is most essential for them. This willprovide assistance to an enterprise as it helps to arrange finance adequately. It is essential toavoid clashes; thus, they can attain their coveted targets within limited period of time. Definition: Costing is considered as a most important aspect of management accounting as withhelp of there many tools an organisation can easily decrease their entire production cost. This canprovide influence to revenues in a direct way. To acquire best outcome within relevant timeduration, manager has to take judgements appropriately. To increase interaction at distinctivelevel, superior can use system of management accounting. As a result, they can opt best optionfor their firm. By utilizing this, employer can comprehend entire policies which are formulatedby regulatory bodies (Weikart and Williams, 2014). Extrinsic surrounding can affect companypositively or negatively. When manager is recording and examining information as well as data,they never take external environment into under consideration. To neglect issues which arerelated to short term, superior needs to manage cash adequately as this can provide impact totheir objectives.Apart from various pros, there are many cons are there which is connected tomanagement accounting. Entire judgements which is taken by utilisation of many techniques isalways depend of both sort of accounts i.e. cost and financial. If wrong decision is taken then itleads to huge losses. Small companies are not able to use this accounting system as this containslots of fund. As arguments of many individuals, management accounting only assists key holdersof firm instead of stakeholders. Therefore, there are various requirements of system ofmanagement accounting which is mentioned as beneath:3

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