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(Solution) Assignment on Management Accounting

   

Added on  2020-12-10

17 Pages5711 Words218 Views
MANAGEMENTACCOUNTING

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Managerial accounting and management accounting system................................................1P2 Diverse methods to management accounting reporting.........................................................3M1 Benefits of management accounting systems and their application with in organisation....5D1 Integration between management accounting system and management accountingreporting......................................................................................................................................5TASK 2............................................................................................................................................5P3 Preparation of income statements by using cost techniques..................................................5M2 Application of management accounting techniques to produce financial reportingdocuments...................................................................................................................................8D2 Financial resorts and interpretation of data of business activities.........................................8TASK 3............................................................................................................................................8P4 Advantages and disadvantages of type of planning tools used in budgetary control............8M3 The use of different planning tools and their application for preparing and forecastingbudgets......................................................................................................................................10D3 Evaluating planning tools for accounting to solve the financial problems to leadorganisation...............................................................................................................................10TASK 4..........................................................................................................................................10P5 Compare ways in which organisation use management accounting to respond financialissues.........................................................................................................................................10M4 Responding financial problems management accounting to lead towards sustainablesuccess.......................................................................................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13

INTRODUCTIONManagement accounting is a systematic framework that provides structure of sustainingfinancial or non-financial information in well organised manner. Scope and importance ofmanagement accounting is increasing dramatically in small, medium and large businessenterprises. Meaning of management accounting and diverse management accounting systemexplained in organisational context. Role of management accounting reports to assist decisionmaking and interrelation between management accounting system and management accountingreporting is defined in this context. Profit and loss evaluation by implementing costingtechniques as marginal and absorption done with practical evaluation. Network Critical Solution Ltd is chosen organisational to assist the project. Various typeof planning tools used in budgetary control process with advantages and disadvantages aredefined in this report. Adaptation and implementation of management accounting system inorganisation to absorb financial challenges and the crisis and comparison subject to organisationsare also defined in this assignment. TASK 1P1 Managerial accounting and management accounting systemIn every business organisation, it has been analysing that management accounting is oneof the essential part of the company. Organisations need to make use of each techniqueseffectively in order to record every accounting transaction more accurately within the set timeperiod. It is the primary aim of financial manager or accountant to all search for best method oropportunity that can help to the control their work in proper manner. It is said to be regulated andestablished through entrepreneur as they are not standardized process. The manager uses futuredata and information not only historical cost for estimating future planning. The total frequencyof preparing financial statements is defined by the company only (Albelda, 2011). Definition: Management accounting is one of the effective process of formulatingadministrative reports and account that is liable to deliver accurate and timely statistical data asrequired by the manager. This will assist them to make future decision, whether related with theshort and long term period. This particular report indicates typical amount of available cash,sales earning and amount of order present in hand within internal level of the department analyseaccordingly (Schaltegger, Zvezdov, 2011).1

Important of management accountingPreparation of plan: It has been seen that the current age is said to be planning phase.For every company, it is essential to make use of every accounting informationeffectively so that growth chances can be enhanced. Before taking any plan the managerused to study and analyse the present and upcoming impacts on the business. Easy to make decision: It is essential for the manager to make effective decision on thebasis of all the financial information that is being collected within an organisation. Themanagement can have decided which plan or rules is positive from the given alternativeto them (Christ, Burritt, 2013).Types of management accounting systemCost accounting systemIt is said to be the branch of accounting data system which would record, measure andreport data regarding all the cost that Tech (UK) is being investing the production process. Themain purpose of using this system is to ascertain cost and their use in decision making for thepurpose of evaluating performance of the company. There are various types of cost that Tech(UK) would incurred during production process. Such as: Actual costing: It is the recording of information about the product costs that are basedon various factors such as actual cost of labour and material. It is used to compile theactual cost incurred to produce one units of products.Standard costing: It is the practise of deducting an expected cost associated with actualcost in the accounting records and variances. It is basically comparison among theexpected and actual costing.Normal costing: It is used to evaluate production of products with the actual labour andmaterial costs. This method applies actual direct cost to any products as well as standardoverhead rates (Contrafatto, Burns, 2013). Inventory management system This accounting system mainly helps in managing the departments and deriving theinventory management. Large manufacturing and production organisations needs to manage theflow of inventories and operating the production process smoothly and effectively. There isspecific procedure is followed subject to organise goods and raw material. Various categoriesand sections subject to stocks and inventories are considered in this accounting system. It helps2

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