Ask a question from expert

Ask now

Assignment On Management Accounting | Costing Methods

20 Pages5901 Words157 Views
   

Added on  2020-01-23

Assignment On Management Accounting | Costing Methods

   Added on 2020-01-23

BookmarkShareRelated Documents
MANAGEMENT ACCOUNTING1
Assignment On Management Accounting | Costing Methods_1
Table of ContentsIntroduction......................................................................................................................................................................1.0Task 1..........................................................................................................................................................................1.1 Explanation of management accounting and essential requirements of different types ofmanagement accounting systems.................................................................................................................................1.1.1 Explanation of management accounting.........................................................................................................1.1.2 Requirements of different types of managerial accounting system ..........................................................1.2 Different methods of management accounting......................................................................................................2.0 Task 2 ........................................................................................................................................................................2.1 Income statement by considering Absorption costing and Marginal costing........................................................2.2 Explanation of the difference between Absorption costing and Marginal costing................................................3.0 Task 3.........................................................................................................................................................................3.1 Advantages and disadvantages of different types of planning tools in budgetary control....................................Task 4.............................................................................................................................................................................4.1 Comparison between the processes, which organisations use the management accountingto respond the financial problems..............................................................................................................................Conclusion.....................................................................................................................................................................References......................................................................................................................................................................2
Assignment On Management Accounting | Costing Methods_2
IntroductionManagerial accounting in a profit seeking concern is to be considered as one of the mostimportant factors of financial control. As accounting is considered as an important aspect offinancial management, managers are to use suitable cost and financial accounting techniques inorder to put control over the financial facts of an organization. In the initial part of the study, theresearcher shall act as a Management Accountant and make report to the General Manager of aprofit seeking concern in order to describe the essential requirements of different types ofmanagerial accounting. The researcher shall make discussion on the different methods ofmanagement accounting in the next part of the first part. In the next part of the study, theresearcher shall make calculations of cost in two different methods of managerial costing.Financial budgeting and other planning tools are also to be discussed by the researcher aftermaking calculation of costs. Moreover, the budgetary control and the financial resourceallocation will also be discussed in order to select financial management problems. Theresearcher shall make the discussions by considering Unilever Inc. In this context, the researcheris to mention that the selected company belong to the manufacturing sector. Task 1To: Name- (General Manager)From: - Your Name- Management Accounting OfficerDate: ................Subject: Management Accounting & Management Accounting System1.1 Explanation of management accounting and essential requirements of different types ofmanagement accounting systems1.1.1 Explanation of management accountingManagement accounting could be considered as one of the most crucial financial factorsthat affects the financial controlling system of an organization as financial accounting is the most3
Assignment On Management Accounting | Costing Methods_3
essential tool to record all the financial facts and figures. In this context, Vernimmen et al.(2014) stated that the financial accounting records all the quantitative data for particular periodof time. On the other hand, the researcher is required to mention that the financial accountingdata are used in developing the managerial accounting. In the profit seeking organizations, themanagement accountants are required to use the accounting information from the financial booksof accounts to prepare different managerial accounting statements such as budgetary reports,variance statement and standard costing statements. In case manufacturing firms like the company in the case study, the managerialaccounting is required to be considered as the most important aspect for putting control over thefinancial facts of the company. As the company involves in manufacturing of goods, whichbelongs to FMCG group, the company is required to make management of the financial resultsand performance on the basis of the market demand. In the Unilever Inc, the objective ofmanagement accountants are to compute per unit cost of sales along with the computation of thevariable costs and fixed costs. As opined by Micheli and Mari (2014), manufacturing companies are needed to includethe managerial accounting tools in order to put control on the different cost centers. In thiscontext, the researcher is required to mention that as the company manufactures a large numberof goods, the company is required to prepare managerial accounting statements for each of thecost centers. In managerial accounting, the accountant is required to analyze variances andprepare budget. Moreover, the marginal costing is also to be found as important for themanagement accountants to compute the profitability and break even for a product (Cornelissen,2014). Therefore, the researcher could mention that the managerial accounting helps to makefinancial planning and this process is helpful in case of large scale manufacturers. Themanagement accounting system of the company follows the computation of total cost ofproduction and the cost of sales. On the other hand, the management accounting system of thecompany would facilitate the manufacturing managers to reduce the maintainable fixed costs. Cost accounting systemIn management accounting, managers could ascertain per unit cost of production. Theinfluence of fixed and variable costs could also be identified in cost accounting mechanism.Moreover, cost accountants could also use the marginal costing approach in order to put control4
Assignment On Management Accounting | Costing Methods_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Management Accounting: Explanation, Requirements, and Methods
|15
|4463
|408

Management Accounting Systems & Techniques
|20
|5703
|222

Management Accounting in R.L. Maynard : Report
|22
|5316
|195

Management Accounting and Budgetary Control
|11
|2428
|76

Management Accounting - Case Study of Agmet
|20
|6546
|197

Management Accounting Systems and Techniques for Financial Problem Solving
|19
|2934
|24