Project on Management Accounting Systems
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Added on 2020-07-23
Project on Management Accounting Systems
Added on 2020-07-23
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Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Management accounting and their essential need for Imda Tech.........................................1P2: Different method of accounting reporting............................................................................3M1: Advantage of types of management accounting system......................................................4D1: Critical evaluation of various types of reporting method.....................................................4TASK 2............................................................................................................................................4P3: Various types of costing method use in calculation net profit .............................................4M2: Analysing various accounting techniques...........................................................................9D2: Critical evaluation of incomes statement.............................................................................9TASK 3............................................................................................................................................9P4: Merits and demerit of various types of budgets....................................................................9M3: Analysis of various planning tools....................................................................................11D3; Critical evaluation of financial issues................................................................................12TASK 5..........................................................................................................................................12P5: Balance scorecard...............................................................................................................12M4: Evaluation of financial issues............................................................................................13CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONThis project model is all about discussing vital information about management accountingsystems. It has been determine that company is always looking to gab new opportunities thoseare valuable in order to attain their future aims and objectives. The role of finance officers is tomake use of appropriate accounting systems in order to make entries of financial transactionincurred during the time. This project report is providing vital information about variousaccounting system and reporting those are essential for them. While use of costing methods incalculating net profit for Tech Imda are discuss under this report. Merits and demerits of usingvarious types of budgets are discussed effectively. Use of balance scorecard in order to resolvefinancial issues are assist in this particular report (Amoako, 2013).TASK 1P1: Management accounting and their essential need for Imda TechIn accordance with using crucial accounting systems in organisation are primary reasonfor the company. According to be mentioned case study of Tech Imda, it has been analyse thatthere financial performance are not effective during the last couple of year. To make analysetheir valuable implication they are appointed a financial analyst to overlooks all necessaryfinancial statements in more effective manner. Management accounting is a systematic processof recording, summarising, communication and analysing their implication to an organisation.This will assist owners of the company to make use of valuable decision to control their allexpenses and costs those are applicable during the course of action (Brewer, Sorensen and Stout,2014). The role of managers is to analyse all crucial aspects those are vital for the company inorder to increase their efficiency and growth during the period of time. There are various types ofsystems which can be helpful in making better understanding of decision making in near futuretime. It has been found that their certain specific comparison among financial and managementaccounting. Both of them are different on the basis of their nature and characteristics. Management accountingFinancial managementThis seems to make proper analysis of allreports that are prepared by during theperiod of time.In this case, managers use to make report bycollecting necessary information from variousdepartments.It does not require any kind of calculationand analysis of financial statements.Under this, entrepreneur has plenty of rulesand regulation needed to be followed to make1
decisions.The time horizon is identified through thecompany itself.The primary focuses are made on the financialyears of an organisation.Besides value data, it is generally providespecific ideas of quantitative data made bythe accountant.All vital information in the financial statementis mostly distinct as per the required financialregulations. Importance of using management accounting system: It is a helpful for an organisation to make appropriate decision making in order to attainfuture aim and objectives. Another crucial aspect of using various accounting systems is toenhance efficiency of Tech UK in coming time. This is preparing accurate and timely financialas well as statistical data to managers in order to make short terms obligations.Types of accounting system:Cost accounting system: It is an effective process of recording, classifying, evaluatingand allocating alternative actions in order to control overall costs for an organisation. Theprimary aim is to advise the management in the vital course of action those are relies on costefficiency and capability of an organisation. This will guide accountant to analyse overallproduction done during the period of time.Inventory management system: It is said to be ongoing process of moving effectiveparts and products into the company’s location. It is responsibility of managers to control theirstock on regular basis as they place any new orders for their product. This will assist in analysingoverall performance by measuring overall quantity of product owned and kept by a business thatis related either for resale or as raw material (Lim, 2011).Job costing system: It is an essential system for assigning production costs to anindividual product or group of products during the period of time. Basically, the job ordercosting is useful only in case of products produce are relevant from one another.Batch costing: It is more similar just like job costing in which every informationregarding product manufacturing data and time are recorded effectively. Total list about group ofbatch produce during the time are mentioned under this costing.Contract costing: This seems to be continuous flow of costs that are associated with aparticular contract. It is use to track cost those are related with a particular contract in accordancewith a customers.2
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