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Introduction to Management Accounting System and Its Application in Jupiter plc

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Added on  2020-10-22

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MANAGEMENT ACCOUNTING INTRODUCTION 2 TASK 13 1.Explaining the management accounting and different type of management accounting system. 13 CONCLUSION 14 REFERENCES 16 INTRODUCTION Management accounting is an essential process in an organisation that will help in analysing, interpretation and presenting the accounting information to the management.It will help themanagementofthe organisation in the decision making process. There are many types of management accounting system which will help in makingbusiness operations of Jupiter plc more effective: Job costing system: It

Introduction to Management Accounting System and Its Application in Jupiter plc

   Added on 2020-10-22

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MANAGEMENT ACCOUNTING
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INTRODUCTION......................................................................................................................2TASK 1......................................................................................................................................31.Explaining the management accounting and different type of management accountingsystem.....................................................................................................................................32. Explaining different method used for management accounting reports............................43. Evaluating the benefit of management accounting system and its application in Jupiterplc. .........................................................................................................................................54.Integration of management accounting system and management accounting reports inJupiter plc...............................................................................................................................61.What is Absorption costing.................................................................................................7TASK 3....................................................................................................................................101. Expalining the advantage and disadvantage of planning tool used in budgetary control...............................................................................................................................................102. Analysing the use of different planning tool and their application in preparing andforecasting budgets...............................................................................................................12TASK4.....................................................................................................................................121. Comparing the organisation are adopting management accounting techniques inresponding to financial problem. .........................................................................................122. Analysing how management accounting in organisation leads to sustainable success byresponding to financial problems.........................................................................................13CONCLUSION........................................................................................................................14REFERENCES.........................................................................................................................16INTRODUCTIONManagement accounting is an essential process in an organisation that will help inanalysing, interpretation and presenting the accounting information to the management.It willhelp the management of the organisation in the decision making process. The present report
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will help in understanding the essential requirement of the management accounting and themanagement accounting system in Jupiter plc. Further, the report will help in understandingthe different management accounting report and its important in timely decision makingprocess in Jupiter plc. The report will also include the income statement using the absorptioncosting method. The record will also help in discussing the various planning tools used forthe budgetary control as measuring the company’s performance. It will help in understandingthe preparation in planning in preparing and forecasting budgeted. The present report willhelp in understanding the comparison between different companies adopting managementaccounting in responding to financial problem. The report will help in understanding theorganisational strategies and plans developing with management accounting techniques inJupiter plc.TASK 11.Explaining the management accounting and different type of management accountingsystem.Management accounting is the process to analyse, interpret and present theinformation to the management in order to make better decisions. it will help the managementto make strategies and policies of the day to day business operations in Jupiter plc which willhelp in achieving the business objectives and order to attain the goal and objectives Jupiterplc. The management accounting system helps all departments of a business to getinformation so that it can be presented to the management in a way that will be helpful so thatthey make the decision making the business operations more effectively (Hilton and Platt,2013). There are many types of management accounting system which will help in makingbusiness operations of Jupiter plc more effective:1.Job costing system: It is a system in which a manufacturing cost will be allocated toeach product or similar batch of product this system helps in recording the cost orexpenses of each individual product. It will record the direct materials and directlabour. Job costing system helps the manager of Jupiter plc to monitor the expensesthat are being assigned to the particular product, in order to fix the selling price of theproduct. it will help the manager of company to set the price in order to cover the costof production and make profit.
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2.Inventory management: It is a system which helps in tracking the flow of goodsfrom manufacturing to the retailers. It helps in ensuring the flow of raw material frommanufacturing to warehouse and to the final customers from retailers. It is an effectiveway to manage the inventory and keep recording of the available inventory and theneed of the inventory. There are three methods of valuaing inventory managemenet:FIFO: This method refers as first in fist out method of inventory. In thismethod the inventory that are first manifactured will be bought first one to besold.LIFO: This method is referd as the ladst in first out. In this valuing system theinventory that was last bought will be first one to be sold. This method isusefull in the case of fluctuations in prices of the product.3.Cost accounting system: the system which is used by the company’s is oprder toestimate the expense of the products in order to estimate the profitability analysis,inventory valuation and cost control (Otley and Emmanuel, 2013). This helps theaccurately cost of the product for the profitable operations. However, it also helps inknowing the profitability of the product.The type pof cost accounting system are:Normal costing: it is used in order to evalkuate the value the manufacturedproducts with the actual material cists, it includes direct costs andmanufacturing cost thata re based on a predetermined manufacturing overheadcost.Standard costing: it helps in valuing the manufacturing with a predeterminedmaterial cost, a predetermined dorect labour cost and predeterminedmanufacturing overhead value.4.Price optimizing system: It is used in order to control the price of the availableresources. It helps in deciding the prices of the multiple products at a time. Thissystem will help in determining the changes in demand of the product with the changein prices of them. It will help the Jupiter plc in organising in determining the pricingstructure for promotional pricing.2. Explaining different method used for management accounting reports.Managerial accounting reporting is a process which helps providing accurate andtimely information about the financial and statistical data of the company. It will be essential
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