MANAGEMENT ACCOUNTING I. Introduction

MANAGEMENT
ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
PART (A)...............................................................................................................................1
PART(B).................................................................................................................................4
ACTIVITY 2....................................................................................................................................8
PART (A)...............................................................................................................................8
PART(B)...............................................................................................................................12
CONCLUSION..............................................................................................................................14
.......................................................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Management accounting is an accounting system which is commonly related with
analysing, monitoring and interpreting all the financial data in order to take internal decisions. It
is one of the most important accounting system for the overall organisations because it includes
all required information related to financial data which becomes the basis of future planning and
policies. In addition to this, it includes both type of data monetary as well as non- monetary
information. It includes various other accounting system (Bennett and James, 2017). In this
report, O'Keefe construction limited is chosen as the base company in this report. It is the
company which is located in the United Kingdom which provides construction as well as ground
work services and so on. This report includes different type of management accounting along
with their advantages. In addition to this, the present report includes various methods of
budgetary control along with the role of management accounting techniques while solving
different financial issues.
ACTIVITY 1.
PART (A)
Management accounting and essential requirement of different accounting method.
Management accounting system is related to the accounting system which help in providing
required information to the manager of organisation which required within decision making
process. Within organisation, management accounting system is important but not mandatory
part of an organisation because not framed according to the accounting concepts and rules.
Moreover, uses of management accounting system is increasing day by day because there are
several approaches as well as techniques involves within it which have own importance within
working of organisation. In addition to this, within wide term there are several accounting
systems included within management accounting system and used by companies within their
working (Bromwich and Scapens, 2016). In relation of the O' Keefe construction company wide
range of accounting system will be implemented that are needed within several civil engineering
project. Explanation of these are as follows: -
Inventory system management – It is type of accounting management system which
help organisation in accurately managing raw material as well as finished products. Generally,
inventory management system keep focus on the movement of raw material and finished
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