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Management Accounting for ABC limited - Assignment

   

Added on  2020-12-18

16 Pages3329 Words37 Views
MANAGEMENTACCOUNTING
Management Accounting for ABC limited - Assignment_1
ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3Management accounting system and its requirements.................................................................3Various methods for management accounting reporting.............................................................4Management accounting system and its benefits.........................................................................6Critically integration of reporting system and management accounting. ...................................7TASK 2............................................................................................................................................7. Calculation of marginal and absorption costing.........................................................................7TASK 3 ...........................................................................................................................................9Disadvantages and advantages of different planning tools for Budgetary Control.....................9TASK 4..........................................................................................................................................11Adaption of management accounting system to solve financial problems....................................11Analyzing planning tools for solve financial issues and problems. ..........................................13CONCLUSIONS............................................................................................................................13........................................................................................................................................................15........................................................................................................................................................15Online.............................................................................................................................................16
Management Accounting for ABC limited - Assignment_2
INTRODUCTIONManagement accounting application of skill and gathered information about variousaccounts that helps to management of company in order to build policies for future planning andcarrying their operations. It is use for providing and useful information and knowledge tomanagement of company which are help to take decisions for company. The main objective anduse of management accounting is to provide all essential information like financial and costmanagement for making decisions. For further information on management accounting, thereport will shows the requirements of management accounting in company by including Costaccounting system, Job costing system and Inventory management system.TASK 1Management accounting system and its requirements.System of Inventory Management Inventory management systems assist in tracking goods via while supply chain andbusiness operations (Gunarathne, 2018). It consists each and every thing from manufacturing,transportation and every movements of parts and stock in between.This particular method ofmanaging accounting system assists the organisation in performing valuation of inventory,making improvements in the accuracy related to inventory through maintaining continuesworkflow.Inventory valuation can be performed by using the following methods - 1.LIFO – The full form of LIFO stands for Last In First Out, in this particular methodthe good which are bough or purchased at last are available for sale at first place. 2.FIFO – This refers to First In First Out, it focuses on selling the stock which ispurchased at first place on priority basis. System of Cost accountingCost accounting system of an organization assist in making an estimate of the cost ofspecific products which are sold in the market. It is used for the purpose of analyzing theprofitability of the business, making valuation of controlling cost and inventory.It also helps intracking the cost of raw materials at each stage of production. ABC limited use cost accountingsystem to identify the most profitable products. The two main system of cost accounting are thefollowing-
Management Accounting for ABC limited - Assignment_3
Cost of job orderCost accounting system is a combination of production cost separately for tasks and jobs.It is perfect for the organization that operates in variety or unique products and an assist thecompany to identify the most profitable product. Process costingIt helps in collecting production cost for each and every procedure separately. Theorganizations which is involved in various sections and cash flow like one section to other canutilized process accounting. Job costingThe data or information collected through the job costing system assist an organization todetermine accuracy of estimation system of the organization. The method of job costing system isutilized in the situation when an organization is producing a large variety of products withdifferent cost. It consists of cost of direct labor and direct material which is utilized in carryingout specific task with overhead costs including rent, depreciation etc. Method of job costing inmanaging accounting system is a business practice. In this system, data or information which arerelated to incurred cost of each and every job work completed is offered to consumer for gettingcost refund according to agreement or contract(Toussaint and et.al., 2015). Various methods for management accounting reportingManagement accounting report is assist an organization or business to collect importantand relevant data in relation to organizational performance and activities. It helps managers inthe organization to analyze the accurate situation of the company.Management accountingreports assist to provide transparency to the stakeholders of the organization and also helps inproviding specific and accurate information for analyzing further. There are different forms ofreports which are utilized under management accounting are as follows:Budget reportsThe budget report is essential to analyze, evaluate & monitor performance oforganization and this can be generated for specific department or entire organization (Mahal,2015). A budget of the organization includes of expenditure and income sources of the
Management Accounting for ABC limited - Assignment_4

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