logo

Management Accounting Table of Content [pic]

   

Added on  2021-02-21

17 Pages3565 Words317 Views
 | 
 | 
 | 
ManagementAccounting
Management Accounting Table of Content [pic]_1

Table of Content
Management Accounting Table of Content [pic]_2

INTRODUCTIONManagement accounting plays a crucial role in the success and sustainability offirms by facilitating them to make an effective and profitable strategies which dependson financial statements which are prepared on annual basis. These final accountsincludes cash flow statement, balance sheet, income statement etc. The financialmanager is held responsible to prepare these accounts thus it can be clearly said thatthe role of accounting manager is very much depends on the role of finance manager.Management accounting includes both monetary as well as non-monetary transactionswhich help in making decision at the time of requirement. KEF Limited which is engagedin manufacturing sector is taken to conduct present study. The report mentions variousconcepts such as management accounting and its systems, reporting systems, costingmethods including marginal and absorption, planning tools to control budget and use ofmanagement accounting system in resolving financial difficulties of an organisation.TASK 1P1:Management accounting is related with internal management of an organisationwhich considers both monetary as well as non-monetary transactions for the purpose oftaking suitable policies and strategies in order bring out better outcome to company innear future. It consists of different accounting systems which should be undertake byKEF Ltd. Here are these systems along with their application and benefits:Cost accounting system:Cost accounting is inventing to monitor the costs occurred by the business. Thissystem is develop to know about all the revenues, costs, and profitability of theorganisation. By adopting this system KEF Ltd. can refining their raw data into usabledata which helps them in decision making, for ascertaining the cost of production, andthe probability of the business. In context of KEF Limited, the manager adopt thissystem in their stores (Bennett and James, 2017). This system provide them importantinformation for financial reporting and decision making. It will help them to know abouttheir manufacturing cost and service cost and also they can keep their information in the1
Management Accounting Table of Content [pic]_3

accounting records. Moreover, after knowing all the cost and profitability, if they feel thatthey should cut their cost from their products then they can do this easily.Price optimization systemIt is a system which helps the company to determine the prices of its goods byidentifying the real buying behaviour of customers while buying company's product.. Inthis method a company's needs to set that price which is acceptable by the customersas well as it will best meet the objectives of the company like maximizing the operatingprofit. In the case of KEF Limited, this system tells the actual buying behaviour ofcustomers towards the pricing policy of company (Garrison and et. al., 2010). In orderto assume the revenue and margin outcome, KEF Limited have to know how priceschanges will effect the customers behaviour towards their products. If the customers isnot satisfied with the price changing policies then company should not change theirprices otherwise their sales start become downfall situation as well as their profitabilityalso. Job costing systemThis system facilitate in analysing cost incurred in production of specific activity.This will direct the management of KEF Limited to allocate funds to each activity on thebasis of outcomes received from them in near future. In the KEF Limited , this systemwill help their accountant manager use this system to prepare budget for each activityso that proper allocation can be made and desired outcomes can be achieving withinlimited time period.Inventory management system:It is reference to that system which tells a company should always keep sufficientinventory so they do not face problem of insufficient inventory. This system is becomeessential for various companies like retailers, wholesalers, and many others. In KEFLimited, this system is used by them to evaluates the status of inventory availability sothat they can meet their customers needs on time which helps them to maintaining theirbrand value and trust towards their company (Gibassier and Schaltegger, 2015). On theother hand, the management should also concern about the extra inventory because itprevents the company from loss of spoiling, expiring, theft of inventory. So they needsto adopt this method in their company, it enable the goods and services flow faster2
Management Accounting Table of Content [pic]_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Sample Management Accounting - Assignment
|15
|3399
|455

PDF Management Accounting Is Crucial Part Of Accounting System
|17
|3077
|30

Management Accounting and its Role in Organizational Processes
|20
|4140
|100

Management Accounting: Systems, Reporting, and Cost Analysis
|13
|3994
|42

Concept of Management Accounting - Assignment
|16
|3733
|71

MANAGEMENT ACCOUNTING INTRODUCTION
|14
|3868
|243