P1 Management Accounting and Essential
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Added on 2020-12-09
P1 Management Accounting and Essential
Added on 2020-12-09
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MANAGEMENTACCOUNTING
Table of ContentsMANAGEMENT ACCOUNTING ................................................................................................1TASK 1............................................................................................................................................3P1 Management accounting and essential requirements of management accounting systems...3P2 Explain different methods used for management accounting reporting................................5P3 .Appropriate techniques of cost analysis to prepare an income statement.............................6P4 Advantages and disadvantages of different types of planning tools used for budgetarycontrol.........................................................................................................................................6Strategic planning:-Application of SWOT in Airdri is first hand drier manufacturing firm......8Strengths .....................................................................................................................................8P5 Compare how organisations adapting management accounting systems to financialproblems......................................................................................................................................9Difference in between airdri financial consultancy and Bright-star financial limited:............10CONCLUSION .............................................................................................................................10REFERENCES..............................................................................................................................12
INTRODUCTIONThe word management defines as planning, organising, staffing, directing andcontrolling to achieve objective as to get an organizational success for future smoothsailing(Renz, 2016). The word accounting defines a report or the analysis of Ballpark numberand give a big picture of business in an appropriate manner. So, Management accounting worksas managing the activity by different figures to get the knowledge of market scenario which helpin planning for future growth. To understand the concept of management accounting, Airdricompany selected. It was founded in 1974 by peter philipps and peter Allen. It is in Oxfordshire(UK). In the project report detailed information about the management accounting, its type etcare discussed. In addition this report contains various management accounting technique theiradvantage and disadvantage and many more . TASK 1P1 Management accounting and essential requirements of management accounting systems.The word management defines as planning, organising, staffing, directing andcontrolling to achieve objective as to get an organizational success for future smooth sailing.The word accounting defines a report or the analysis of Ballpark number and give a big pictureof business in an appropriate manner( Maas, Schaltegger and Crutzen, 2016.). So, Managementaccounting works as managing the activity by different figures to get the knowledge of marketscenario which help in planning for future growth. In an organization, management is needed as to build a trust among employees towardsthe goal. It clarifies the work which functioned to cut-throat the competition in a market. Themanagement help in getting the goal on the table and delegate the authority in different groups toget the aim fulfilled in an efficient and effective manner.
Airdri Limited which works for manufacturing of different electrical equipment and aleader in world at present in hand dryer development, the aim is to offer the best comfort to itscustomers and can maintain the stabilise goodwill in market. Management accounting has a vast difference when it compares to financial accountingas it works more on to operational reports and financial accounting comprises all differentreports of accounting standard which help in taking vital decision for the company growth. Essential requirements of different types of management accounting systems.Style of management is much more important as it fix a way to handle the managementinternally, either in autocratic or democratic manner. In Airdri ltd, management has adopted boththe style according to its team, as the nature of employee and the effective work which has beendone by communicating goal for the purpose of strengthening intrinsic motivation amongemployees together. Organizational structure which has classified in two different areas functional and flatstructure. In functional structure manager gives authority only to the extent of own function andin flat structure, manager works on all definite reports and information by which decision hasbeen taken to make the organization better. In Airdri Ltd work has been allotted by theinformation, what information the manager is getting, who will use the information and how theinformation can be useful for taking the decision in smooth sailing of a business. Financial information related to accurate value with reliability is much more beneficial atthe time of taking decision in the company. The manger focuses on the updated data and talks offinding the different analysis in maintaining appropriate cost for company. Cost accounting system facilitate a frame work by which an organization estimate theoriginal value of a product manufactured in an industry, Airdri which works on reducing the costwith an appropriate cost cutting method and maintain its quality in an appropriate manner. Inventory management system coordinate or to supervise the flow of merchandise fromthe one level of manufacturer to the end till it enter into point of sale. The flow of good in Airdrisupervise on the basis of its defect so to offer the best quality in market.Job costing system put efforts in maintaining or recording the cost of a manufacturing jobrather than finding its process. Airdri takes help of job costing system where managers writeevery record related to the cost of each job and maintain the information which help in the futureoperations of a business.
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