Management Accounting Assignment (PDF)

   

Added on  2020-12-29

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Management Accounting
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Table of ContentsINTRODUCTION ..........................................................................................................................1TASK 1............................................................................................................................................1Concepts and types of management accounting with their essential requirements.....................1Various types of management accounting reporting system......................................................2Benefits of various types of management accounting system....................................................3Evaluation of the both accounting system and reporting and their integration...........................4TASK 2............................................................................................................................................4P3: Costing methods used to compute net profit ........................................................................4TASK 3............................................................................................................................................4Advantage and disadvantage of planning tools used for controlling budgets.............................4Analysis of the use of planning tools and their use.....................................................................5TASK 4............................................................................................................................................6Comparison with other organisation to use accounting system for reducing financial issues ...6Analysis of various ways to respond to financial problem..........................................................6Evaluating planning tools for accounting respond for resolving issues .....................................7CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
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INTRODUCTION Management accounting enables that a business to be conducted with the motive ofearning maximum profit with the help of available resources. It is an important tools andtechniques that can provide accounting to carry out all management activities such as recordingof financial transaction into their respective format (Abdel-Kader, 2011). To better understandthe concept of Management accounting Jupiter Plc has been selected. This project report aimed at providing specific information about the use of various typesof accounting system as well as reporting method used by the company in their businessoperations. Apart from this, use of costing techniques in calculating net profitability is also bediscussed under this report. Along with that advantage and disadvantage of using planning toolsthose are used in budgetary control are mentioned below. Comparison with other organisationregarding use of management accounting system in controlling financial issues are taken intoaccount effectively. TASK 1Concepts and types of management accounting with their essential requirementsIn the current scenario, it has been seen that maximum number of business organisationare having problem in arranging their resources and to formulate various financial statements. Itcan only be resolve through using effective accounting system that can help the mangers inrecording, summering, communicating and evaluating various transaction that are done by thecompany during the period of time.Definition: Management accounting is said to be specific provision of data that areneeded by management for such purpose as designing policies, planning and controlling theactivities within the Jupiter Plc. There are various types of management accounting system that can be used by Jupiter inevaluating the financial data in systematic manner. Some of them are mentioned below: Cost accounting system: It refers as one of the crucial method of accounting in which allthe cost associated with performing any procedure, project or products are noted or recordedwith their respective format. It can assist an organisation in taking specific strategic decision inrespect to the company growth and sustainability. Financial accountant makes use of varioustechniques that can help Jupiter plc cost effective in near future time. It is inefficiencies of
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essential improvement to control cost those are incurred on the production process. There iscertain cost which are needed to be taken into account such as normal, standard and actual cost. Inventory management system: It is said to be valuation of non-capitalised inventoryitems. The best part of this system is that it is basically related with important part of supplychain management (Bouten and Hoozée, 2013). The manager can supervise the flow of productsfrom the producers to warehouse and from these services to the point of sale. It is combination aswell as maintenance of carried items, whether those goods sufficient enough for the company infuture planning process. There is various specific system that are useful for an organisation suchas Jupiter in recording various data such as LIFO, AVCO and FIFO. Price optimisation system: This seems to be one of the vital types of managementaccounting system that can be useful in numerical analysis of an organisation that can determineperception of customers those are respond to various prices for their product and services withthe used of different channels. It can further be used to examine the prices that a company will bebest suitable fit in attaining overall objectives in increasing operating profit for Jupiter plc duringthe period of time. This can be used to tailor pricing for customer segments through simulatingabout targeted client that can respond to price modification with the give customer demand.Job costing system: It is one of the most effective costing system that is assign to anindividual product or batch of items. Basically, the job order costing system is utilised only whenthe products produced are sufficiently separate from one another. Jupiter plc need to determineits total cost which is incurred on the production of each job. Various types of management accounting reporting systemIt has been seen that a management reporting system is an essential part of managementcontrol system that can provide Jupiter company information about their current and pastposition. This information can be in the form of reports as well as statements. The commonpurpose of the financial reports is to provide information regarding the outcomes of theoperation, financial position and cash flow position of Jupiter. This data can be utilised throughthe readers of financial reports to make decisions in relation to the allocation of resources. Thereare various sources of data collection that can be used by Jupiter to evaluate the performance ofthe company. There are certain reporting systems which are mentioned below: Performance report: It is a crucial activity in the project communication management inJupiter plc. It consists of collecting and disseminating project data and communicating project
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