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Management Accounting Assignment: Sollatek

   

Added on  2020-06-06

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Management Accounting
Management Accounting Assignment: Sollatek_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................2P1. Essential needs of management accounting system..............................................................2P2. Techniques used for MA reporting.......................................................................................3M1: Advantages of MA..............................................................................................................5D1: Critical evaluation of reporting system................................................................................5TASK 2............................................................................................................................................5P3: Use of costing methods in evaluation of net profit...............................................................5M2: Various accounting methods...............................................................................................7D2: Evaluation of profit and loss statements..............................................................................7TASK 3............................................................................................................................................8P4: Advantages and disadvantage of using planning tools.........................................................8M3: Critically analysis of planning tools..................................................................................10D3: Use of tools to overcome financial problems.....................................................................10TASK 4..........................................................................................................................................11P5 to resolve financial issue with the use of MA .....................................................................11M4: Evaluation of financial issues............................................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
Management Accounting Assignment: Sollatek_2
INTRODUCTIONAccounting is the systematic process of data collection, summarising and recording offinancial transaction which is related with the business operations. While, management isresponsible for providing proper planning, controlling and maintaining effective records andbalance in company’s financial statements. Combination of both can help company to attain itslong and short term goals and objectives (Ahmad and Kamilah, 2013). It is considered as one ofthe important aspects of business entity in order to regulate its day to day financial transactions. In this project report, “Sollatek” company uses various accounting techniques andmethods to control and maintain their operations. Firm has appointed a account office to preparea well organise report that can provide necessary information regarding accounting system in thebusiness organisation. This report involves various analysis of costing and reporting methodsthat can help them to calculate good or bad outcomes. Also, different planning tools which areused by Sollatek in order to manage their operating expenses and cash-flows are explained here.The performance of two companies is compare at the end of this report. 1
Management Accounting Assignment: Sollatek_3
TASK 1P1. Essential needs of management accounting systemAccounting system is the concern with sourcing, analysis and communication of variousdecisions which are associated with the relevant financial and non-financial data. It is based onthe positive impact of decision for transformation of administration. Management accountingplays an important role in guiding right direction the manager and company as well. Crucialdecisions which are helpful for the growth, performance and modification are based on type ofaccounting system used by Sollatek (Bodie, 2013). It has been determined that scope andsignificance of management accounting are highly essential for making effective financialdecision. It consists of several types of accounting data which are associated with financialreporting like costing, inventory analysis and many more. The results are effective if company isusing more accurate and reliable information. In order words, all irrelevant data can affect the profitability of the cited company. Themanager needs to plan perfect strategies according to the set standards so that desired outcomescan be attained. The interest of shareholders is required to be considered by the accountmanagers because they are responsible for providing right direction to company. The majoraspects of any business concern is to generate as much profit so that long term and short termobjectives can be meet out. The resources of company can be utilised by applying properaccounting system so that less chances of wastage can occur. Accounting system helps managersto estimate the total cost incurred by firm over the production of goods and services. It is one ofthe most accountable aspects that are required to be kept as a part of planning process becauseoverall decision of future plan is based on the financial position of company. All are determined by using information from various accounting statements which areprepared by the managers during year. Prime motive of managers is to increase maximumrevenue by using least cost over the expenses. As, they know that resource are in very limitedand that can be used through applying right techniques and methods which can help them tominimise wastage. During the procedures of new project, sollatek incurs heavy capital over itsset up and necessary requirements that all are managed and control by accounting system(DRURY, 2013). The department of finance is responsible for evaluating total cost and losseswhich are going to be invested during starting of new venture with the use of various MAsystems. As a account officer, it is my sole responsibility to use perfect accounting system so that2
Management Accounting Assignment: Sollatek_4

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