logo

(PDF) Management Accounting Assignment

19 Pages4723 Words454 Views
   

Added on  2020-12-09

(PDF) Management Accounting Assignment

   Added on 2020-12-09

ShareRelated Documents
MANAGEMENTACCOUNTING
(PDF) Management Accounting Assignment_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1A) Definition of management accounting and requirements of different types of managementaccounting systems.................................................................................................................1Types of management accounting reports and the importance of such reports to management. ................................................................................................................................................2C) Evaluate the benefits of different management accounting systems.................................3D) How the management accounting systems and management accounting reporting areintegrated................................................................................................................................4TASK 2............................................................................................................................................6A) Absorption costing and marginal costing methods. .........................................................6................................................................................................................................................7B) Break-even Calculations:...................................................................................................7................................................................................................................................................8C) Significance of Task 2.......................................................................................................8D) Produce financial report....................................................................................................8TASK 3............................................................................................................................................8A) Advantages and disadvantages of different types of planning tools for budgetary control..8B)Planning tools for preparing, forecasting and analysing budgets. ...................................10B)Role of management accounting systems in reducing financial problems. ....................10E) How Planning tools help in resolving financial problems.............................................12CONCLUSION..............................................................................................................................12REFERENCES................................................................................................................................1
(PDF) Management Accounting Assignment_2
INTRODUCTIONManagement Accounting refers to process of preparing of reports and accounts thatprovides timely financial information to managers and helps them in taking day-to-day decisions.This report discusses about different types of Management Accounting Systems. It discuss howmanagement reports are integrated with management systems. Further, The advantages anddisadvantages of using different types of Planning Tools for budgetary control and theapplication of different tools for planning, preparing and analysing budget. R.L. Maynard is aSmall and Medium-Sized Enterprise established in 1973. It is engaged in property constructionand development business for past 45 years. TASK 1.A) Management Accounting and requirements of different types of management accountingsystemsManagement accounting refers to presentation of accounting information that providesaccurate and timely financial and statistical information, which is required by managers to makeshort-term decisions. It differs from financial accounting, which produces annual reports externalparties or stakeholders. Whereas Management Accounting generates monthly or weekly reportsthat is used by organisation for their internal users like; department heads, CEO. The reportpresented by management accounting includes details of Cash held by company, Sales revenueor income generated by firm, current status of firm such as Account Payable and Receivable etc. Importances of different types of Management Accounting Systems are as follows:Cost Accounting Systems: It refers to framework used by companies to estimate costassociated with their products in order to perform profitability analysis, inventoryvaluation and cost control. It is crucial aspect as estimating accurate cost of raw materialswhich go through production stages and slowly turned down into finished products. CostAccounting system helps R.L. Maynard to know which products are profitable inconstruction purpose. It helps company in preparing financial report by estimatingclosing value of materials, inventory, work-in-progress and finished goods (Ax andGreve, 2017).Inventory Management Systems: It refers to combination of technology, proceduresand process, which look over maintenance of stock or inventory held by company. Thishelps R.L. Maynard to enhance their transparency. Company can achieve better reporting1
(PDF) Management Accounting Assignment_3
and forecasting capabilities, which reduces the storage cost of inventory held by R.L.Maynard. Job-costing systems: In this system, manufacturing cost is assigned to each individualproduct or different batches of products. It is a useful tool for R.L. Maynard as it isengaged in property construction business as each building developed by firm is uniqueand it helps the company as job cost report direct materials and labour which utilised andmanufacturing overhead assigned to each job (Bromwich and Scapens, 2016). Price-optimising systems: It is a mathematical analysis used by company to predicthow consumers will react to different prices for product/services of company whenoffered through different channels. This help company to predict the revenue and marginoutcome for their products. Types of management accounting reports and the importance of such reports to management The management accounting reports help managers in preparing appropriate managementreports, which help company to forecast current situation for making crThe use of Absorptioncosting is beneficial for Company. This can be interpret from the Income statement produced. Itidentifies importance of fixed cost involved in production of each unit. The pricing based onabsorption costing ensures that all cost is recovered. Absorption costing takes into account thecost of production and not just direct cost unlike variable costing. The absorption costing showsless fluctuations in Net profits in case of constant sales. Marginal costing helps determining and controlling cost of production. It preventsarbitrary allocation of fixed cost which helps management to concentrate on achieving andmaintaining a uniform cost. As fixed overheads are not charged to cost of production each unitsproduced have standard cost assign to it. itical business decision. These reports are as follows:Accounts Receivable or Ageing Report: These reports are used to facilitate inmanaging account for those companies who are engaged in extending the credits to theirconsumers. It helps to review and monitor the status of the receivables, open credits,finance charges and credit refunds (Chiwamit, Modell and Scapens, 2017)Budgeting Report: It has been formulated to set out the plan for evaluating companyperformance by making evaluation of departmental performance and control costs. Theseare financial goals based on estimates and future projections. These budget reports are2
(PDF) Management Accounting Assignment_4

End of preview

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

Related Documents
Management Accounting System and Requirements Doc
|15
|5083
|343

Report on Management Accounting and Its Benefits - R.L. Maynard Limited
|19
|5069
|63

Management Accounting Report Assignment
|16
|5023
|132

Management Accounting Report - R.L. Maynard Ltd
|19
|5363
|70

Research Project R.L.Maynard-Mangement Accounting System
|16
|3860
|104

Tools and Techniques of Management Accounting Assignment
|18
|5077
|356