Management Accounting Assignment- Budgetary Process

MANAGEMENT
ACCOUNITNG

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Different types of accounting system and their essential utilisation................................1
P2: Different types of management accounting report and their importance.........................3
P3: Different costing methods using for calculating net profit..............................................5
P4: Advantage and disadvantage of using planning tools......................................................7
P5: various financial problems and their effective control measure......................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Management accounting refers to the process of identifying, measuring, analysing and
preparing financial statement which help company in knowing their actual financial position in
competitive market world. The manager of company is held responsible to record and analyse
the accounting data and resources which will be useful in making an effective decision for
company. Preparing financial reports annually easily attracts investors, shareholders etc. to invest
more in an organisation through which an organisation can achieve growth and success for
longer duration. The main purpose of preparing this report is providing the role of management
accounting in the success of an organisation. Various accounting and reporting systems which is
helpful in improving the performance of company also discussed under this report. The project
also covers different planning tools which are used to control budgetary process and also other
techniques in order to resolve all financial issues are also mentioned under this report
(Schermann, Wiesche and Krcmar, 2012).
TASK 1
P1: Different types of accounting system and their essential utilisation
For every business organisation, it is important to record accounting transaction in order
to find out the actual revenue and expenses through which the manager can able to implement
corrective actions if any deviation found. The manager of company is held responsible to store
material accounting information regarding investors, shareholders, customers etc. which will be
helpful for them to take an effective decision in order to get positive outcome in near future.
Adopting accounting system enables manager to focus on important matters which will bring
beneficial to company. There are some advantages of adopting management accounting system
which are as follows:
Increase in efficiency: It will help in bringing efficiency in various business activities in
order to achieve desired goals and objectives within limited period of time.
Measurement of performance: It helps manager to measure the performance of
employees through comparing their actual performance with standard so that efficient workers
are easily identified.
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