Management Accounting INTRODUCTION
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Added on 2021-01-02
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Management Accounting INTRODUCTION 1 TASK 11 1.Explaining management accounting and the essential requirementand different types of management accounting system 1 2. 11 CONCLUSION 11 REFERENCES 13 INTRODUCTION Management accounting is a significant process which will help the organisation in analysing, gathering and presenting the information of the business operations to the management. TASK 1 1 1.Explaining management accounting and the essential requirement and different types of management accounting system The management of the company needs to know about the business operation in order
Management Accounting INTRODUCTION
Added on 2021-01-02
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Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.Explaining management accounting and the essential requirement and different types ofmanagement accounting system..................................................................................................12. Explaining different methods of the management accounting reporting................................23. Evaluating the benefits of management accounting system with their application in Jupiterplc................................................................................................................................................34. Critically evaluating the integration of management accounting system and managementreports in Jupiter plc. ..................................................................................................................4TASK 2............................................................................................................................................5a) Absorption and Marginal costing techniques..........................................................................51.Income statement as per absorption costing.............................................................................62.Income statement on basis of marginal costing.......................................................................7Computation of manufacturing cost per unit :............................................................................8TASK 3............................................................................................................................................81. Explaining the advantage and disadvantage of different type of planning tool used inbudgetary control........................................................................................................................82. Analyzing the use of different planning tool and their application in preparing andforecasting budget.....................................................................................................................10TASK 4..........................................................................................................................................101.Comparing the ways in which organisations are adapting the management accountingtechniques..................................................................................................................................102. Analysing the management accounting system in responding to the financial problems andleading to the organisational success........................................................................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................13
INTRODUCTIONManagement accounting is a significant process which will help the organisation inanalysing, gathering and presenting the information of the business operations to themanagement. It helps the management in taking various decisions and making policies with thehelp of the management accounting system. The report will help the Jupiter Plc in understandingneed of management accounting in their organisational system. The present report will includethe essential requirement of management accounting system for the better operation of the firm.Further, report will help in understanding the need of management accounting report for topexecutives of Jupiter plc. Moreover, report will explain the benefits of applying the system inorganisation. The report will also include the calculation of income statement with differentcosting method. Furthermore, different planning tools for budgetary control is also discussed inreport. Report will also help in understanding the importance of management accounting systemin responding to the financial problem and leading the Jupiter plc to sustainable success.TASK 11.Explaining management accounting and the essential requirement and different types ofmanagement accounting systemThe management of the company needs to know about the business operation in order totake appropriate steps to make decisions and strategies for the further growth and development ofthe company. The process of making analysing, gathering and presenting the business operationsto the management is termed as management accounting (Nahar and Yaacob, 2011). It is animportant process which helps in formulating different policies which will help the managementof the company in day to day operations. Management accounting system is very essential in an organisation which will help theJupiter plc in measuring and evaluating the internal system of the organisation in order toproperly manage the business operations ( What is Management Accounting? , 2018). There aredifferent type of managerial accounting system which is essential for the management of theJupiter plc, they are:Cost accounting system: It is an essential system for Jupiter plc in order to analyse thecost of the manufacturing of the product. Cost accounting is useful to find theprofitability of the product, internal control on the cost of production and inventory1
valuation of the company. It is very important to know the expenses incurred in order tomanufactured the cost of production which will help in estimating the profitable productfor the company.Job order costing: It is an important process for the organisation as it helps in assigningthe manufacturing cost to each product or the batch of the products (Renz, 2016). Joborder costing is a system which helps in tracking and monitoring by assigningmanufacturing cost to each product. It helps the management of the Jupiter plc to know tokeep tracking the expenses of manufacturing.Inventory management system: The system helps the management of the Jupiter plc totrack the flow of products through its entire supply chain and through different operationsof manufacturing. This system helps the manager to monitor different operations of itsproduct manufacturing which will helps the management of the Jupiter plc to makedifferent decisions and investment decisions.Price optimization system: This system helps the management of the Jupiter plc toknow the changes in the preference of the consumers for the products with the changes inthe price of product. Price optimization system helps in determining the cost of thecompany which helps the operations to meet the maximising the operating profits. 2. Explaining different methods of the management accounting reportingIn order to make accurate and timely decisions and strategies for the operations of thebusiness which will help in attaining the goals and objectives of the Jupiter plc. Managerialaccounting report plays an important role in transforming the financial and statistical data in away that can be presented to the management of the Jupiter plc (Honggowati and et.al., 2017).The managerial reports helps in providing the internal information that will be used in planning,regulating and measuring the performance of the organisation. Following are the types ofmanagement accounting reports for the Jupiter plc:Budget reports: it the most essential report for any type of organisation. It helps themanager to measure the actual performance of the business operations with the budgetedperformance. It helps in controlling the cost of business operations. It considered theexpenses of the prior year expenses for the preparation of the current year budgetedexpenses. 2
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