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Management Accounting Assignment- Unicorn Grocery

   

Added on  2020-06-06

14 Pages4734 Words88 Views
Management Accounting

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Management accounting and essential requirements of different types of its systems....1P2. Different methods used for management accounting reporting.......................................3TASK 2............................................................................................................................................4P3. Calculation of cost to make income statements of marginal and absorption costing......4TASK 3............................................................................................................................................7P4. Budgetary control.............................................................................................................7P5. Tools needed to solve problems.......................................................................................9CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12

From: MAOTO: GMSubject: To present a report to GM in which management accounting, its systems and variouscosting techniques are reported. Reporting will also be made so that implementation can be madeappropriately.INTRODUCTIONIn the present scenario, for effectual achievement of all objectives and goals, techniquewhich can be used is management accounting. In this, data is initially collected, then identifiedand measured and finally, it is analysed to make effective use of same. Management accountingplays a significant role in drawing accurate conclusion and making proper interpretation. In thisreport various aspects of management accounting will be discussed with reference to UnicornGrocery. This will help in making the best decisions as required data is provided to managers.Here, various systems and reports that are made in organisation will be explained together withthe calculation of profit that is done by using available methods. The tools and techniques thatare used in planning and resolving issues faced will also be explained in the report.TASK 1P1. Management accounting and essential requirements of different types of its systemsManagement accounting is the process in which complete data to be used is identified,collected and then analysed to draw reliable conclusion. The need of information is there in allorganisations and in order to meet them, it is required that various systems shall be taken intoconsideration. By the help of them, necessary data is collected that is useful for decision making.Targets set are attained as the best judgements are made which lead to proper working inbusiness. Data for different aspects whether financial or static shall be included in this so that itcan be utilised for the benefit of company (Renz, 2016). The right to use this information liesonly with internal management and no external person is allowed to access this data. Under this,all the major areas of Unicorn Grocery will be included which affect the profitability. Adescription of some main systems that can be used is provided as below:Cost accounting system: The main factor which is to be considered in all businesses iscost as by this only, profitability can be identified and maintained. For this reason, it isused and various steps are carried out so that efficient working can be made possible. The1

first step is to measure the inventory by which its value is identified in next part. This willhelp in cost identification that is to be recorded by managers in the next process. All thisis useful in controlling the overall cost of product, resulting into increase in yield which ismain objective of any entity.Inventory management system: All the work that is performed is done with help ofinventory and so it becomes very much necessary that it shall be controlled by UnicornGrocery. By this improvement in operations will be achieved and so it is needed thatstock shall be kept at required level. For this economic order quantity is to be calculatedso that maximum advantage can be attained. Sometimes situation arises that stock is inshort which hampers the production thereby affecting total production. This issue will bedealt in proper way using this system (Agbejule, 2011). Also decision in respect ofsupplier from whom goods shall be acquired is taken, so that one providing best quality atleast rate can be selected.Price optimisation system: In this system such information is obtained which is requiredin process of fixation of price. This is very important as by it only the amount to beearned is decided. So it is necessary that proper analysis of various factors shall becarried out and then on basis of them decision shall be made. The main aspect to beinvolved is demand present in market. This is because price shall be such by whichdemand can be increased and as there is inverse relation so if it is to be increased thenprice s to be kept at low level. While fixing, interest of business and consumers both shallbe taken into account. For this such amount should be charged which is affordable forcustomers.Job costing system: In the business there are various jobs which are undertaken and forthat it will be needed that identification shall be made that which are most relevant andcan never be avoided. There are some such aspects which can be ignored and the costwhich is incurred in relation to them can be saved. So they will be determined andeliminated. The cost will be calculated in aggregate and then allocation will be made toall the jobs that are performed. By the help of this cost of each unit is ascertained that isfurther used in calculation of price to be charged from users.2

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