Management Accounting Systems and Reporting

Management
Accounting
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explain management accounting and different types of management accounting systems
along with its essential requirement............................................................................................1
P2. Describe different method of management accounting reporting which are used by
organizations................................................................................................................................3
M1. Benefits of management accounting systems......................................................................4
D1. Critically evaluate that how management accounting systems and management
accounting reporting are integrated within organisational processes..........................................5
TASK 2............................................................................................................................................5
P3. Calculate cost by using appreciate cost analysis techniques and prepare income statement
by using marginal or absorption costing method.........................................................................5
M2. Apply range of management accounting techniques and generate financial reporting
statements....................................................................................................................................9
D2.Produce financial reports that accurately apply and interpret data for a range of business
activities.......................................................................................................................................9
TASK 3..........................................................................................................................................10

P4. Explain the advantages and disadvantages of different types of planning tools used
for budgetary control...............................................................................................................10
M3. Analyze the use of different planning tools and their application for preparing
budgets and forecasts..............................................................................................................12
TASK 4..........................................................................................................................................12
P5. Compare how organizations are adapting management accounting systems to
respond to financial problems................................................................................................12
M4.Analyze how, in responding to financial problems, management accounting can lead
organizations to sustainable success......................................................................................14
D3.Evaluate how planning tools for accounting respond appropriately to solving financial
problems to lead organizations to sustainable success..............................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Management accounting is defined as an accounting method that helps an organization to
function better(Weetman, 2019) (Muller, 2019). This can be described as implementing
management approaches and knowledge required to assist all department heads in managing and
controlling the business. It focuses on accounting aspects. The primary role in accounting units is
the compilation and analysis of data. Managers have used the gathered information to routinely
decide. Management accounting required information for managers to fulfil strategic
requirements. In financial reports various management decisions are presented.This report is
based on Grant Thornton which is UK based company and provides professional network
services.They offer financial services to their clients and Creams Limited is one of them. It is UK
based medium size organization which offersice creams, doughnuts, waffles etc.
This assessment covers several topics such as management accounting systems, range of
different accounting techniques which are used to evaluate operational performance. In addition,
it involves planning tools that are used for budgetary control and further evaluate the ways which
helps firms to resolve their financial issues through implementing range of management
accounting techniques.
MAIN BODY
TASK 1
P1. Explain management accounting and different types of management accounting systems
along with its essential requirement
Managerial accounting is an accounting division that deals with the identification,
calculation, review, and evaluation of accounting data so that it can be always had to help
managers make the required decisions to handle the activities of a organization
effectively(Singhand Verma, 2018). In order to perform accounting activities, there are several
management accounting systems which are used by the Creams Limited to improve their
operational efficiency as well as effectiveness. Some of them are as follow:
Cost accounting system: It is known to be the type of accounting management approach
encompassing a variety of activities as well as monetary factors(Cristea, 2018). For businesses it
is necessary to keep costs under estimated. In the Cream Ltd context, this accounting is used to
keep the costs of sales below the estimated costs. The main purpose of this system is to
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