logo

Benefits of using management accounting system and their application

13 Pages4464 Words463 Views
   

Added on  2020-06-06

About This Document

Management Accounting INTRODUCTION 1 TASK 11 (A): (i): Concept of management accounting and their essential requirements 1 (ii): Cost accounting system 2 (II): Inventory management system 2 (IV):Job costing system2 (B): (I): Various management accounting methods of reporting 3 M1: Benefits of using management accounting system and their application 4 D1: Critical evaluation of accounting reporting integrated within a company 4 TASK 25 (i): Different types of costing methods use for calculating net profit 5

Benefits of using management accounting system and their application

   Added on 2020-06-06

ShareRelated Documents
Management Accounting
Benefits of using management accounting system and their application_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1(A): (i): Concept of management accounting and their essential requirements..........................1(ii): Cost accounting system........................................................................................................2(II): Inventory management system............................................................................................2(IV):Job costing system...............................................................................................................2(B): (I): Various management accounting methods of reporting ...............................................3M1: Benefits of using management accounting system and their application............................4D1: Critical evaluation of accounting reporting integrated within a company...........................4TASK 2............................................................................................................................................5(i): Different types of costing methods use for calculating net profit.........................................5M2: Analysis of various accounting techniques.........................................................................6D2: Critical analysis of income statements.................................................................................7PART 3............................................................................................................................................7(I): Advantage and disadvantage of using planning tools in budgetary control.........................7M3: Analysing planning tools.....................................................................................................8D3: Critical evaluation of financial issues..................................................................................9TASK 4............................................................................................................................................9(I): Comparison of various financial issues related with various companies..............................9M4: Analysis of financial problems.........................................................................................10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
Benefits of using management accounting system and their application_2
INTRODUCTIONIn context to the mentioned case study, it has been seen that manager of “Zylla Company” isfacing certain kind of issues related with the recording of various accounting information. It canbe resolve by using appropriate management accounting systems that can assists an organisationto analyse their financial transactions that are done during the time. It has been observed thatmanagement accounting is an essential part of every business organization, Through the use ofthis manager can use to attain their objectives without incurring extra costs for the company.This project report is providing crucial information about various accounting system andreporting that is being used to evaluate various financial data. Uses of costing methods are alsodiscussed under this report to determine total net profit for the company during the time.Effective uses of various planning tools to which are helpful in budget control are illustratedunder this project. Analysis of various financial problems and their effective measure to resolvethose issues are mentioned under this report (Amoako, 2013).TASK 1(A): (i): Concept of management accounting and their essential requirementsNowadays, it has been determine that management is always trying to use that tools orsystems which will be helpful for the company to generate more effective outcomes in nearfuture time. Accounting is said to be an effective system which is use to summaries, record andanalyse various financial transactions that are being incur by Zylla Company during the period oftime. While management is responsible for managing all the information that are being collectedby the account manager by using appropriate functions such as:Planning: This seems to be an effective technique by which company need to make earlystrategies to generate more capital of profit with the limited amount of investment in theirprojects.Organising: It refers as appropriate function of management to collected valuableamount of resources that are needed to accomplish valuable amount of profits during thetime (Brewer, Sorensen and Stout, 2014).Controlling: This is a necessary management functions to control all the operations thatare being done at operational level of an organisation. 1
Benefits of using management accounting system and their application_3
Effective decision making: According to this particular function which is used toprovide right direction to their business to make appropriate decision in order to increaseprofitability of an organisation.There are various types of management accounting systems which are useful for thesystematic recording various financial transactions into their respective format. Some of them arediscuss underneath: (ii): Cost accounting systemIt is known as one of the effective accounting system which is use to record, classify,analyse and evaluate various alternative aspects that are related with production process. Theprimary motive of using this particular accounting system is to advise management regardingone of the most vital course of actions those are related with cost efficiency and ability toproduce more reliable results for the company. There are various types of costs associated withthe manufacturing of products such as standard cost, normal and actual. The total estimation ofaccurate costs of products is eventually helpful to increase profitability operations for ZyllaCompany. (II): Inventory management systemIt is ongoing process of moving specific part and products into and out of a company’slocation. The role of managers is to manage their inventory level on regular basis as they placenew orders for goods and ship order out to their respective client. The primary motive of usingthis system is to track their inventory level, orders and sales level. This will be an effectiveaspect for the mangers to increase goodwill of the company. It is an essential aspect in retail,wholesale, services sector and many other crucial sectors (JOSHI and et. al., 2011). (IV):Job costing systemIt refers as an appropriate system for allocating production cost to a single products or groupof products. Basically, the job order cost is use to measure all those products those aresufficiently separate from one another. This process of assigning costs a company incur to aparticular job a business is associated with Zylla Company.Price optimisation system: It is said to be an effective mathematical evaluation which isdone by a company to analyse how customers would react about various pricing policies that are2
Benefits of using management accounting system and their application_4

End of preview

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

Related Documents
Management Accounting: Types, Benefits, and Analysis
|10
|2934
|67

Management Accounting Contents of an Organisation
|14
|4755
|246

Management Accounting : Zylla Company
|12
|3774
|112

Management Accounting and its Uses for calculating Net Profit
|17
|4619
|309

Various types of accounting systems and their applications
|17
|5071
|467

Management accounting is constrained
|14
|4331
|272