logo

Management Accounting and Essential Requirements Report

14 Pages4134 Words32 Views
   

Added on  2020-09-03

Management Accounting and Essential Requirements Report

   Added on 2020-09-03

ShareRelated Documents
MANAGEMENTACCOUNTING REPORTFOR TECH
Management Accounting and Essential Requirements Report_1
Table of ContentsINTRODUCTION...........................................................................................................................1P1 Management accounting and essential requirements.............................................................1P2 Various types of managerial accounting reports to present financial reports........................3TASK 2............................................................................................................................................4P3 Income statement using absorption and marginal costing method for Tech.........................4TASK 3............................................................................................................................................5P4 Budget for planning and controlling purpose........................................................................5TASK 4............................................................................................................................................8P5 Balance scorecard approach to face the financial problems within Tech..............................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
Management Accounting and Essential Requirements Report_2
INTRODUCTIONManagement accounting and budget management will help organisation to manage andcontrol their cost and resources to respond financial problems in the firm. The report will coverthe management accounting and essential requirements. Income statement of Tech usingmarginal and absorption costing method is also assessed with managing the budget in this report.The balance scorecard approach to respond the financial problems within Tech will be discussedin this report.P1 Management accounting and essential requirementsMANAGEMENT ACCOUNTINGIt is also known as cost and managerial accounting. Management accounting is useful tomake internal financial reports, accounting and decision making by analysing the costs ofbusiness operations. This will also help management accountants at Tech to prepare costing andfinancial data and translate it into useful information. This will help to control and achieve thebetter planning for business activities (Armstrong, 2014). It also enhance the value of customersand shareholders and help managers to use the resources effectively.Importance of management accounting information for department managers as a decisionmaking tool: Management accounting information is crucial for managers in order to improvetheir decision making for long terms with data driven inputs. For an example, Cost techniquesbased on activity, information utilisation and relevant cost analysis etc.Identify the performance metrics for managers in Tech.Collect information and data to report the current performance of Tech to manager ascompared to the expectation.Evaluate the deviation reasons and suggest appropriate measure.Distinguishing financial accounting from management accountingBASISMANAGEMENT ACCOUNTINGFINANCIAL ACCOUNTINGDEFINITIONA process which help manager byproviding essential information formaking plans, policies andstrategies.It prepares financial statements OfTech to provide financial informationeffectively.INFORMATIONMonetary and Non-monetaryinformation.Monetary information only.1
Management Accounting and Essential Requirements Report_3
TIME FRAMEReports are prepared according tothe needs.Financial statements are prepared atthe end of year in accounting periodof time.REPORTComplete and detailed informationfor the reports.Prepare summary report includingfinancial information at Tech.Cost accounting system (actual, normal and standard costing): Cost accounting system willhelp managers in Tech to evaluate the cost of services and products offered by them. The costdata will help managers to control and manage the business resources with the help of plans andstrategies for future needs as well. Normal costing, actual costing, direct labour cost andmanufacturing overhead cost are related to the product cost which is used in cost of goods sold.It will help manager to determine the actual selling cost of a product and service.Manager can determine the profitability and able to meet the competition.Identify the product and services cost which helps to manage the resources and decisionsaccordingly.Inventory management system: Inventory is includes the stock of products and resources suchas finished goods, raw materials and work in progress (Chandra, Menon and Mishra, 2016).Managing the inventory will help manager in Tech to control and manage the resources whichhelp them to determine the availability, quantity and quality of stock effectively. Inventory costalso involves cost of storage such as insurance, capital cost, taxes and facilities cost efficiently.Inventory management system help managers to protect against shortage of resources anduncertainties.The system will also help to take advantage of economy scale which support the policies,plans and strategies efficiently. Job Casting system: Job casting is a process of cost recording and accumulation in which themanger identify the present work cost to manage and control it easily and effectively. The systemis mostly used by those organisations where the production of product is 'one off' and alsodifferent for a consumer. It is also used for the special demands of a customer towards a productor service in a short period of time comparatively and effectively.It helps to establish the cost of planning, controlling and decision making of managers.2
Management Accounting and Essential Requirements Report_4

End of preview

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

Related Documents
Assignment on Management Accounting (pdf)
|25
|5201
|57

Management Accounting Assignment Report (MA)
|16
|4418
|52

Management Accounting - Tech Ltd
|16
|3979
|83

Management Accounting Assignment Solved (Doc)
|18
|5370
|87

Management Accounting of Tesco
|17
|4759
|253

Management Accounting Assignemnt : Imda Tech
|16
|4373
|144