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Management Accounting in a Non-linear Organization

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Added on  2020-06-06

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Management Accounting INTRODUCTION 1 PART A1 P1 1 P2 3 M1:5 D1:5 P3 5 M2:1 D2:1 P4 1 P5 5 CONCLUSION 6 REFERENCES 8 INTRODUCTION Management accounting is the broad managerial aspect which is needed to be prepared by the management of the company in order to, make the business sustainable and compatible. In management report, information of 4com company is provided and planning tools of management are discussed in details for stabilization of financial

Management Accounting in a Non-linear Organization

   Added on 2020-06-06

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Table of ContentsINTRODUCTION...........................................................................................................................1PART A...........................................................................................................................................1P1............................................................................................................................................1P2............................................................................................................................................3M1: ........................................................................................................................................5D1:..........................................................................................................................................5P3............................................................................................................................................5M2: ........................................................................................................................................1D2: .........................................................................................................................................1P4............................................................................................................................................1P5............................................................................................................................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8
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INTRODUCTIONManagement accounting is the broad managerial aspect which is needed to be preparedby the management of the company in order to, make the business sustainable and compatible.This assist the firm to make the business prosperous and developed (Baldvinsdottir, Mitchell andNørreklit, 2010). With the help of management report, anyone can know about the financial andother cost related information about the company. Normally, financial statement of Next plc isused for the individuals' who are directly or indirectly concerned with the operations of thecompany. But, management accounting system is used by the cited firm's internal managementfor effective management. Management accounting is used by the management. Managementaccounting comprises of cash details, sales revenue generated, debtors, creditors, stock, rawmaterial and additional covers trends charts.In management report, information of 4com company is provided and planning tools ofmanagement are discussed in details for stabilization of financial position of the cited firm.Management accounting also helps the firm to solve the financial problems so that the firm couldeasily obtain its objectives. PART AP1This is totally related to making reports which is concerned to the internal management.This is the process of determining, assessing and recording and summarizing information (Bodie,2013). To frame the decisions, there is a strong requirement of the 4com company to know themanagement accounting reports so that the resources can be efficiently utilized. This systemhelps in managing entire cost of the cited company and enhancing productivity and revenues ofthe firm. It additionally controls day to day affairs of the cited firm. Management accountingassist in making the business grow. There are so many kinds of management accounting systems.Inventory management system: This system is implemented for monitoring of inventoryor stock items. Under this management system, whole inventory of a company can bemanaged and this would lead to provide a smooth functioning of the firm. With the helpof this system, 4com can use its raw material in an optimum manner. This will also assistin monitoring the flow of inventory from the manufacturer to the retailers. 1
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Price optimization system: Under this system, the price of the company is determinedafter considering total cost which are covered while producing goods. Prices are neededto be decided in such a manner that could lead to produce higher profits and that couldalso be affordable by the consumers. Under this, an analysis is framed to identify aboutthe responses from consumers on various prices of the products. The main objective ofthis concept is to reach at price which is most favourable to the cited organisation.Job costing: This costing method is used for examining cost covered in any specified jobwhich is being performed in certain production process of certain special products. Jobcosting is used to determine the cost involved in any particular work specified bycustomers. This method of costing is used by such organisations where every job isparticularly different and being done with specifications given by clients.Cost accounting system: This is being used by a company to ascertain total cost incurredin different activities for producing goods of organisation. This analysis is being used forprofitability analysis of an organisation and it helps in controlling cost of company. Afteranalysing cost of all the activities it can be evaluated that which items of cost are vitaland which are of no use and increasing cost unnecessarily. Cost accounting system isutilised in ascertaining value of raw material, work in progress and final product. This allinformation collected by using this system are utilised in preparing financial accounts ofa company (Burritt, and et. al, 2011). Cost accounting system is further divided into 2parts. These are job costing and process costing. Process costing is being used in suchorganisations where manufacturing of a product is done by different processes. Standard costing: It is based on estimations which is related with operational activities,thus people can develop items effectively under the normal circumstances. Along withthis, it can be utilized on the basis of target and additionally can be created withassistance of historical information. It is always different from actual price, at each andevery circumstances will be linked with unpredictable elements. There are two methodsof this costing, such as LIFO and FIFO.Types of standard costing: Ideal standards:Cost settled those depend on perfect conditions. It is illustrative for longhaul objectives with greatest effectiveness.2
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