Management Accounting - Avon Rubber Plc Assignment
23 Pages5084 Words51 Views
Added on 2021-02-21
Management Accounting - Avon Rubber Plc Assignment
Added on 2021-02-21
ShareRelated Documents
Management accounting
Table of ContentsINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1P1 Explain management accounting and its essential requirements of different accountingsystem..........................................................................................................................................1P2 Explain the different methods used for management accounting reporting..........................3LO 2.................................................................................................................................................5P3 Calculation and income statement.........................................................................................5ANNEXURE A ..........................................................................................................................5ANNEXURE B .......................................................................................................................11ANNEXURE C.........................................................................................................................12LO 3...............................................................................................................................................13P4. Identification of advantages and disadvantages of various planning tool utilised forbudgetary control ....................................................................................................................13LO 4...............................................................................................................................................15P5. Comparing the way organization are adapting management accounting system forresponding to financial issues ..................................................................................................15CONCLUSION..............................................................................................................................17REFERENCES..............................................................................................................................18
INTRODUCTIONManagement accounting is the precondition of fiscal information as well as utilised bymanagement in an enterprise. Accounting is represented the various accounting information andresults of management in term of framing policies and daily routine work in organisation. Thishelp to management of company to perform their function like planning, organizing, staffing,directing and controlling of accounting results (Alsharari, Dixon and Youssef, 2015). It isthrough the financial accounting company is get proper financial information on the time thathelps manager in forecasting and analysing different activities to be undertaken for the growth oforganisation. The present report will be based on “Avon Rubber Plc” which is Britishengineering company. The company is manufacturing of respiratory protection equipment formilitary, milking products for the farmers and rubber products for personal protection. The study lays emphasis on the management accounting and give essential requirementsof different types of management accounting system. The report will explain by the differentmethods which are used for management accounting reporting. LO 1P1 Management accounting The management accounting is term which has refers the provision of accountinginformation for better informing to manager. It is adds performance and management for controlfunctions. It is the practical application of professed skills as well as knowledge in collectingaccountancy content (Weetman, 2019). This is provided in financial reporting and control forassessing management implementation of company strategy. This defined as an outcome whichis happened surrounding the business by considering needs and wants. This provide financial data and statistical information to manager of Avon company withthe help of making the short term and day by day decision. Managing professional practices ofaccounting that is highly important and essential for growth and development of business(Järvenpää and Länsiluoto, 2016). This help to take each and every decision-making process ofthe organisation which is help to manage records, financial reports. Different types of management accounting system and its requirementsCost accounting system
Cost accounting is the process of summarizing, recording, classifying, assessing andallocating of current cost and prospectives expenditure that are related to the procedure anddeveloping after in different courses of actions for controlling cost.. It is advising themanagement and also optimising practices of business which has totally based on the capabilitiesand efficiency of cost. This is also provided the detail and prefect information of the cost whichis help to manage and required controlling actual transaction and planning. If Avon organizationis follow this than they are able control current operations of business. Cost accounting system is required for taking decision which optimize revenue andprofitability of company (Different types of management accounting system, 2018.). It is internalreporting system for management take all decision as per requirements. This is importantbecause with the help of this manager able to understand cost of running business. Price optimisation systemThe price improvement scheme is a mathematical model which is help to calculatevarious demands prices level for recommended price which are help to improve profit andrevenue. This is also uses the data and analyse to predict potential buyer and their behaviour atdifferent price of product and services. This allow to Avon company to use price of product as apowerful profit level which is under developed. With the help of this company is able to managetheir account and price optimism of system by profit. This is start with the segmentation ofcustomers where seller estimates customers at various segments and it will respond to variouspricing strategy by many channels. Inventory management systemStock administration method is a software tracking system at the different level like sales, orders,deliveries and others. Mostly this system is used in manufacturing company and industry forcreating and tracking orders of work, bills materials and all the documents which are related toproduction. The Avon company is manufacturing company which is used inventory managementsoftware for reducing wastages from outages and overstocks by inventory control management.It is important tools and techniques which are help to organize inventory data before and it wasgenerally stored in hard copy and spreadsheets. This system is essential and important for raise sales and tracking each and every units byprefect stock management, fulfil the orders and control software of the inventory. This help tospecifying place and shape of stock goods in stores area (De Villiers and Maroun, 2015). It is
required or supplying the facilities at different location for preceding planned and regular coursesof production and stock of all materials. LIFO is the method which is used in the inventory accounting. In this method, cost is mostimportant and recent products purchased are the first to be expended. As per this method,company is use last inventory in first and first inventory in last. FIFO is stand as the first in first out, as per this method company is use first inventory and rawmaterial first in use of production. Job costing systemJob costing system is types which is utilized for trade good are made on the basis ofspecific customer requirement and order. It is allowed the job numbers which has been assignedto the single products of revenues and expenses. This helps to assess all expenditure which areincluded in the construction of job and manufacturing products and services in discrete batches.All the cost are keep in the account book throughout the job. After, then it had been summarizedin the final trial balance earlier set up the statements of manufacturing and job cost. Those are highly important and essential for business and its growth for keep their records andcontrol resources in proper manner. Those are important for company with the help of thiscompany make their accounting and records of their raw material in effective manner. P2 Explain the different methods used for management accounting reporting.). It is specifically used for decision-making, controlling and planning of business which isdepends on the financial statements (Wagenhofer, 2016. There are different methods which areused in management reporting. Those are as follows:Budget reportBudget management accounting report is very critical which is help to measuresperformance department wise. Every company is make budget for understand their business. It isestimation which is based on the previous experience and report estimation. The budget reporthelps to owner of the business for assessing manager and employees performance of theirdepartments. This is generally made for apply before financial year plan and also adjust futureprojections (Types of management accounting reporting, 2017). Avon company is spend list ofall sources of income and expenses. With the help of this company is tried to achieve gaols andobjectives of company. Manager of Avon company used budget report in order to providing
incentives and compensation to their employees. This is also helped to comparing set of data andevaluates accurate and realistic data by predictions. Account receivable report. The report of management accounting is break into remaining balance of clients andcustomers into specific time which is allowed manager of Avon company for identifying issuesin company collection of process. It is basically presents money which is generated by entities oforganisation on sales of credit products and services (Schaltegger and Burritt, 2017). This can bemailing and electronically delivering to their customers. The account receivable is charge getfunds on the place of organisation. This is applies on its actual pending balance. This is effectiveand best accounting report which is help to manage credit sales of product and services. It isimportant for company because with the help of this manager is able to manage accountsinventory on daily basis.Job cost reportThe job cost report shows expenses for a specific projects which are financed bybusiness. The main goal of job methods is to estimation of profitability and revenues that areevaluated by profitability of job. It has also helped to research the higher earning of area which isfocused on the additional and hard efforts of money in wasting time on lower profit margin. Thisalso used for observing the expenses while the project in progress of company. This process ishelp to determine labour cost and material cost of every aye work in effective manner and also insystematic manner (Boiral, 2016). This is basically used in virtually in the Avon company whichis help to management for ensure price of products and cover accurate, current cost and itsprovide revenue. Inventory and manufacturing reportThe inventory and manufacturing system is help to manage the physical inventory andproduce item which can be used in the managerial accounting report in order to remove hurdlesfrom manufacturing process and also make it more efficient and effective (Kaplan and Atkinson,2015). This can includes the waste inventory, per hours labour cost at per unit overhead costs.This help to compare in different lines and departments of business which highlight those areaswhere have need fir improvement and best performance of different department. Execution report
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Management Accounting & Applicationslg...
|21
|6517
|98
Essential Requirement of Management Accounting.lg...
|22
|6249
|150
Management Accounting : Renishaw Plclg...
|29
|6079
|49
Assignment on Management Accounting on Oshodi plc Ltdlg...
|21
|6497
|17
Management Accounting: Types, Reporting, and Budgetary Controllg...
|18
|4451
|27
|LO 1: Demonstrate an|P1|P1 Explain management | 1 | 3 | | Understanding | | |Assessme| | |LO 1: Demonstrate an|P1|P1 Explain different | 1 | 4 | 5 | |LO 1: Demonstrate an|P1 Explain accounting | 1 |lg...
|19
|5158
|326