Management Accounting Assignment Docs

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Added on 2020-06-04

Management Accounting Assignment Docs

Added on 2020-06-04

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MANAGEMENTACCOUNTING

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1LO 1.................................................................................................................................................1P1 Management accounting system which demonstrate essential requirement of differenttypes of management accounting system ...................................................................................1P2 Different methods used in the management accounting reporting .......................................3TASK 2............................................................................................................................................4LO 2.................................................................................................................................................4P3 Calculation cost with using techniques of cost analysis and prepare income statements ofmarginal and absorption costing and differences in it................................................................4TASK 3............................................................................................................................................7LO 3.................................................................................................................................................7P4 Advantages and disadvantage of different planning tools used in budgetary control ..........7LO 4...............................................................................................................................................13P5 Compare how enterprise adapt management accounting system to respond towards thefinancial problem......................................................................................................................13CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16

INTRODUCTIONManagement accounting is the process of preparing reports of management and accountswhich assists to gather relevant information towards the aims and objectives. Further, it is alsohelps to provide accurate and timely information to managers to determines short and long termdecisions (Melnyk, Bititci and Andersen, 2014). In this context, report based on the JCW whichis provided excellent and world leading recruitment services in different areas of the world. Theydetermine their services in more than 100 recruitment consultants in UK. For gaining insightknowledge of the report, it covers management accounting which demonstrate essentialrequirement of the accounting system. Furthermore, it includes different methods that are usedfor management accounting reporting for the selected business. In addition to this, it includesadvantages and disadvantages of the planning tools for the budgetary control. At last, itdetermines comparison of the organisation which adopt management accounting system torespond financial problem. TASK 1LO 1P1 Management accounting system which demonstrate essential requirement of different typesof management accounting system In respect to analysis, interpreting and presenting the information, managementaccounting play very important to demonstrate effective functioning. With this regard,information gathered with using costing and accounting information which helps to makedecisions for short term goals. In addition to this, in JCW it determines day to day operations insystematic way to undertake activities. In the process of management accounting includesmeasurement of the business performance, preparation of financial statements, assessment of therisk, etc. (Bennett, Schaltegger and Zvezdov, 2013). There are three major aspects included suchas management, accounts and finance, etc. With the help of management report, different kindsof information in relation to business strategies and making financial status of the company insystematic manner. These helps to the chosen organisation to take corrective decisions that areneeded at workplace. Further, in respect to take decisions, there are different types of management accountingsystem exists that used by the company to collect and present effective financial information at1

workplace. The selected business unit used different system of management accounting whichincludes several factors like cost of production, services given by JCW, etc. Managementaccounting system in the business determines as follows:Traditional cost accounting system: This method is used and carry conventionalmethods of accounting. It includes direct and indirect costs that considered in thetraditional accounting system (Pavlatos and Kostakis, 2015). Therefore, it assists todemonstrate cause and effect relationship. Costs incurred in the production allocated toassign unit in the production process. In the JCW, basis of accounting system includesvolume of production and overhead that are related to the production and direct labouroverhead. According to the traditional costing, average overhead basis of allocation ofproducts cost. All the indirect expenses also pooled together and assign equally per theappropriate cost drive. It includes labour hours, machine hours, etc. The chosen businessuse this method to take account cause and effect relationship (Quinn and Jackson, 2014).Hence, it is beneficial to managers to take appropriate decisions with direct and indirectcost. Throughput accounting: Throughput accounting system assist to determine quantity ofproducts and raw material that is passed through the process and system. In this kind ofmanagement accounting system includes costing activity which helps to focus on thedetermination of constraint that are arises in the manufacturing of units. In the JCW, itdemonstrates relation to labour turnover, raw material, wastage in the capacity of plant,etc. Basically, it includes focuses on the eliminating such constraints which insist toensure that quantity and quality of production will be increases (Fayard, Lee andKettinger, 2014). In this way, direct material is only allocated to the cost of inventory thatmake effective functioning in the business. In addition to this, selling and distributionoverhead also charged in the period cost under the method. This method also ensure thatcosting also minimised for every unit of production. It enables to create effective andefficient production in order to work in the line with job and process costing. Thismethod ensures that constraints of the chosen business diminish through each unitproduced (Mitter, Mitter and Hiebl, 2017). Therefore, it assists to make effective andefficient working system with job and process costing. 2

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