Management Accounting Concepts and Techniques for Decision Makers

Management Accounting
Concepts and Techniques
for Decision Makers

Table of Contents
Introduction......................................................................................................................................1
Main Body.......................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Various types of management accounting systems..............................................................1
P2 Different methods used in management accounting reporting..............................................4
TASK 2............................................................................................................................................5
P3 Calculations of costs using suitable techniques of cost analysis to prepare an income
statement using marginal and absorption costs...........................................................................5
TASK 3..........................................................................................................................................10
P4 Advantages and disadvantages of different types of planning tools used for budgetary
control.......................................................................................................................................10
TASK 4..........................................................................................................................................12
P5 Compare adapting management accounting systems to respond to financial problems......12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

Introduction
Word management accounting is made with combination of two separate words that is,
Management and Accounting. It also widely known as managerial accounting. Which can be
define as a process that provide information resources to the manager of the organisation which
help them at the time of decision making. In simple language it is the accounting for internal
management. It provide overall financial information to business mangers that it is only used by
internal internal team. The process involve sharing of sharing of financial informations , reports
such as, invoices, ledgers, financial statements etc. by finance administration with management
teams of the company (Appelbaum and et. al., 2017). It help in increasing managerial efficiency
by providing all necessary informations and facts to them to facilitate the managers in decision
making and control all other functions in the company. The objective of management accounting
is to take better decisions, control management performance, interpret financial information etc.
in the organisation by using all necessary statistical information. On the other side, Financial
accounting is the measuring, processing, recording and presentation of informations for the
benefit of the company's stakeholders. It is the process of recording daily financial transactions
in a manner which help in preparing suitable informations regarding financial affairs of the
business. For report purpose Connect Catering Services is the chosen organisation which is a
family owned contract caterer service in UK. In following report is going to cover several
aspects of accounting which is necessary to understand overall management accounting concept
and its methods which are used by business to create report and take decision on the basis of
them (Heryanto and Sudibyo, 2017). Finally the impact of financial problems of the organisation
and what are the key affecting areas of the company will be discussed and how they are going be
addressed with the help of different methods.
Main Body
TASK 1
P1 Various types of management accounting systems.
Some major types of management accounting are discussed below in the following
sections:
 Cost Accounting System: It is model used by company in order to calculate the costs of
the services or products for the purpose of analyse profits of the company. In this process
1