Management Accounting - Azio | Report

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1&M1 Management accounting and its benefits..................................................................3
P2 Various methods used for accounting reporting...............................................................5
D1 Analysis of accounting systems........................................................................................6
TASK 2 ...........................................................................................................................................7
P3 and M2 Calculation of cost by using distinct tools ..........................................................7
D2 Critical analysis of accounting techniques.......................................................................9
TASK 3..........................................................................................................................................10
P4 Different planning tools use in budgetary control..........................................................10
M3: Analysis of planning tools............................................................................................12
TASK 4..........................................................................................................................................12
P5 Differentiate various organisation those are facing financial issues ..............................12
M4: To respond to financial issues.......................................................................................13
D3: Analysis of planning techniques ...................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Management accounting includes several system which can be adopted by the business
entity so that they can manage all the operational activities and also assist in providing best
services to their consumers so that they can not face any issues. Along with this it aid in
improving the performance of the company as well as employees in the market when business
entity is facing high competition (Baldvinsdottir Mitchell and Nørreklit, 2010). Management
accounting assist in gathering, analysing along with the evaluating the data so that the employees
can do the developments of the business. Moreover, managers of the firm have to make the
proper and appropriate financial reports which helps in attracting the investors to do investments.
The present assignment is focused on Azio which is a manufacturer of keyboards, mice, audio
devices as well as mobile accessories in the style of gaming, vision and colourful lifestyle series.
In the below mentioned report discussion based on cost which is to be calculated by using the
different techniques whether it is absorption costing or marginal costing. Further, discussion on
the distinctive planning tools which assist in doing the control on the budgets and the advantages
and disadvantages of these budgets so that they can attain success.
TASK 1
P1&M1 Management accounting and its benefits
Management accounting refers to the presentation of the distinct accounting data in a
proper manner. so that they can help the administration in the planning of the plan of action as
well as daily transaction in the business. Along with this it is related to the usage of business
data which is assembled with the aid of fiscal as well as cost accounting as it helps in
formulating the policy, planning, control along with the decision making by the management
(Bennett, Schaltegger and Zvezdov, 2013). It is the utilization of the appropriate and relevant
techniques along with the concepts which assist in doing processing to maintain the historical
and projected data of Azio to succour the supervising in making or establishing the plans for the
reasonable economic objectives and rational decisions to attain objectives. Management
accounting having a wide scope which helps in planning and organising all the business activities
so that they can attain the targets. Moreover, it aid in managing the financial accounting which is
a for doing the investigation and reading for providing the significant data to the management. It
also aid in budgeting and forecasting so that they can express the program, plan of action and

goals of the firm for a specified period of time. Along with this it assist in doing the inventory
control as well as statistical method so that the employees of Azio make the information
impressive and it is highly useful for planning and forecasting (Busco and Scapens, 2011).
There are different management accounting system which is the essential requirements of
Azio to accomplish the goals and objectives. They are:
Cost accounting system: It is a system which can be adopt by the business entities to manage the
cost of the product which assist in improving the productivity and performance. There are
various costing system such as normal, standard and actual costing methods which are used by
the company in order to analyse the direct cost in manufacturing process. The main advantage of
this system is measurement and improvement of efficiency and fixation of prices by doing the
profitable and unprofitable activities.
Job costing system: It refers to as job order system which is used by the company in order to
determine the manufacturing costs to an single product or batch of a goods. It is used mainly
when the goods are produced are different from each units or product from that slots (Christ and
Burritt, 2013). The main advantage of this system is that it helps in doing the proper
management. So, that they can determine total cost from the previous Job units.
Inventory management system: It is categories with different stock control devices such as
floating device so that they can do the streamline with the supervising of the inventory or stock.
By doing the proper work they can control the inventory by tracking the two main functions
which includes receiving and shipping. The goal of inventory control and which includes the
inventory levels as well as assist in minimising the under-stock and overstock situations.
Traditional management system: It refers to that system which assist in focusing on the goals
and objectives that are established by the senior level management. This helps in increasing the
sales as well as profit so that shareholders can do the proper investments that provide attainment
of objectives at the marketplace at the time of huge social event (Cinquini and Tenucci, 2010).
They have to do organise all the activities with the effective communication which assist in
maintaining the standards in the market.
Lean accounting system: It is a approach or rules and regulations which assist in running the
business entity which assist in supports the concept of continuous improvement so that a long
term approach as well as long term approach so that they can do the work in a systematic manner
so that they can make the changes according to the process which assist in improving the