Management Accounting and Methods Report

Added on - 22 Jul 2020

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MANAGEMENT ACCOUNTING
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting and its different accounting systems:...........................................1P2 Different methods used for management accounting reporting:............................................2TASK 2............................................................................................................................................4P3 Marginal and Absorption costing:.........................................................................................4TASK 3............................................................................................................................................6P4 Advantages and disadvantages of different types of planning tools used for budgetarycontrol:........................................................................................................................................6TASK 4............................................................................................................................................7P5 Adaption of Management Accounting System during financial problems:...........................7Conclusion.......................................................................................................................................9REFERENCES..............................................................................................................................10.......................................................................................................................................................11
INTRODUCTIONManagement accounting is analysing financial and non-financial decisions so that anorganisation can maintain and enhance their value. Most of the accounting systems focus on oneor two departments but in management accounting, concentration is kept on improving theoverall performance of company (Christ and Burritt., 2013). In the present report, as per givenscenario, the firm, Dell will be chosen which is a multinational company and known for making,repairing and selling personal computers. They are also investing in cameras, high definitiontelevision and printers. Their mission is to provide top quality goods and services so thatcustomers can get the best value for price they have paid. They believe in optimum utilisation ofthe available resources so that efficiency and effectiveness of company can be maintained for along time. This report will give information about management accounting and its differentmethods. It will also include different planning and budgetary tools which can help company incost reduction and in increasing the sale of products.TASK 1P1Management accounting and its different accounting systems:A company has to keep record of various data and information which can be related tointernal or external work of organisation. When a firm needs to take some important decisions,they need reliable content which can be gathered by using management accounting systems andits different tools and techniques. This type of accounting method plays a crucial role in theformation of different business strategies and in minimising the risk that in many parts ofbusiness operations. One of the most important functions of management accounting is to reducethe cost of manufacturing and expand business so that ultimately, net profit can be increased.Dell is known for minimising various costs like inventory as they make a system in which theydo not keep their resources idle for a long time. There are mainly four types of managementaccounting systems, that is, lean accounting, traditional system, transfer pricing and throughputaccounting (Busco and Scapens., 2011).Traditional system –It mainly deals with process and job order costing methods. They work inorder to find cost related to labour material and other overheads. This process is important forDell because it is majorly related to manufacturing products. By using these methods, companyhas made a sound system process of making various goods and this also provides a great1
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