Management Accounting Concepts: DOC
Added on -2021-02-21
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Management accounting
INTRODUCTIONMA refers to the chain of various kinds of applications to grab professional knowledge,tools and techniques and kinds of concepts for prepare the information to get desirable goals andobjectives that helps in formulating plans and policies in context of organisation. In other words,it helps in devising meaning of information and data related to cost accounting to get usefulknowledge and information to remain always relevant into marketplace. That assignment rely onTPG processing that a service provider to the general public to provide best services to consumerbase.This assignment rely on kinds of management tools and their techniques with theirrelevance in marketplace. With it added methods of management accounting reporting with helpof tools that helps in plan and coordinate each and every activity with their advantages anddisadvantages. It includes systems to resolving financial problems to get right kinds of outputs.TASK 1P1 As per view of R.N. Anthony “MA defines about accounting information that proveduseful for management.” Management accounting helps to management in major decisionmaking by giving them direction to get most important insights and knowledge that are relevantfor organisation. As per the view of Batty “Management accounting described as an accounting methods,techniques and systems that associated with knowledge and capabilities that helps tomanagement to gain maximum profit by minimizing losses. It mixed with the coherent whole,financial accounting, cost accounting and whole concept of financial accounting” As per thebatty management accounting helps to acknowledge the useful knowledge and capabilities thatgives important insights that ultimately useful for major decision-making in context oforganisation. Management accounting proved useful by using all kinds of tools and techniques such asfinancial accounting, cost accounting and various kinds of statistics to collect and processinformation that available before management that helps in taking important kinds of decisions. Comparison:Management accounting is differ from the financial accounting that it focuses on buildingand preparation of financial statement for an organisation (Banerjee, 2012.. On other hand
accounting system give necessary and relevant information for managers for building policies,plans and tactics. Roles of MA:MAare very much crucial for organisational development and enhancement by somefactors its importance and roles should be understood that are as follows:Fewer numbers to crunch:MA enables to understand the technical aspect of knowledge and information. It enablesto giving hidden facts and figures by reading the net income, contingent liability, accountsreceivable and payable (Contrafatto and Burns, 2013. ). Managerial accounting not follow thestandard financial accounting principles to get right kind of outputs. By giving accurateknowledge and information it helps to managers in taking crucial decisions. In respectiveorganisation they use management accounting to get gist of financial accounting tools andtechniques so that better results should be accomplished. Looking to the future:Management accounting proved beneficial by build projections for the future but theirmain focus is on the performance in past year or in quarter. It majorly focus on what is coming infuture so that better plans should be prepared to get right kind of objectives. Follow the money:Management accounting helps in looking and observing projections of system. It is theresponsibility of a manager to observe about the performance level to take correct course ofaction. In respective organisation they enables to management accounting evaluate the financialcondition of their respective organisation. Ready when they need it:In an organisation financial statements should be prepared on the regular basis such asevery month, quarterly or yearly basis. It enables tosystem can be able to get update about cashflow position that helps in deal with the critical situations to remain always competitive inmarketplace (DRURY, 2013.). In respective organisation by financial statements firm measureor assess their performance on fixed duration. Margin analysis:Management accounting proved beneficial in determining the amount of profit or ratio ofcash that created or generated by using specific product or services with a particular state or
region. In context of TPG processing they get important outcomes by analysing the margin instandards set by them.Auditing:Auditing is one of major role of management accounting that are responsible for theperforming audits, reviews and compilations of various kinds of financial statements to achievebetter decision making. It is one of major role of management accounting to get importantinsights and knowledge to remain always competitive in marketplace. Financial management:This is one of most important kind of role of management accounting in which financialfuel information and regular and efficient functioning to ensuring that should be provided toremain always relevant in the marketplace. Role of management accounting is to accumulatenecessary knowledge and information regarding the finance and resources to get desirableobjectives in better manner. In context of TPG processing by using the management accountingtools and techniques they predict in better manner about future projections. Cost analysis:The most important role of management accounting is to analyse the cost associated withproducing the products and services by predicting the existing expenses of an organisation as perthe future activities. In context of TPG processing by using that tool organisation can be evaluatethe incurred cost and various measures associated with it. Make or buy evaluations:Management accounting helps in taking the make or buy evaluations, for an organisationproduce a product is one of most expensive possession so it helps to make sure about the chosenoption suits with needs of an organisation. In that regards management accounting helps toevaluate the best option for them to remain always competitive in marketplace. Define budgets:the main role of management accounting is to give important insights to taken budgetrelated decisions by complying with sales history and marketing database. By analysing theformer activities and defining actions for the future activities they take important decisions.Controlling:
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