Management Accounting and Cost Analysis

Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1 ............................................................................................................................................1
P1. Define management accounting with their essential requirements of management
accounting systems......................................................................................................................1
P2. Methods that are used in management accounting report.....................................................2
M1. Benefits of management accounting system with their application ...................................3
D1. Evaluating management accounting systems and report is integrated with context to
organisation..................................................................................................................................4
TASK 2............................................................................................................................................5
P3. Calculate cost analysis and prepare an income statement using marginal and absorption
costing .........................................................................................................................................5
M2. Apply a scope of management accountancy with suitable financial reporting documents.
....................................................................................................................................................10
D2.Make a financial reports that are applied and interpret data for a extent of business
activities.....................................................................................................................................10
TASK 3..........................................................................................................................................11
P4. Benefits and limitations of different kinds of planning tools that are used in budgetary
control........................................................................................................................................11
M3. Examine different planning tools with their applications..................................................12
TASK 4..........................................................................................................................................12

P5. Comparison how firms can adjust management accounting in respond to financial
problems ...................................................................................................................................12
M4. Analyse financial problems can lead organisations to sustainable occurrence..................14
D3. Evaluate planning tool in respond to solve financial problems that lead to organisations. 14
CONCLUSION.............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Management Accounting is a procedures that defines and give financial information to
provide valuable information for managers in which they would make a business decisions in
effectively and efficiently manner (Anand, Balakrishnan and Labro, 2019). The aim of this is to
assist their operations of business in an efficiently performing its functions. This report is based
on Pearl Chartered Accountants is one of best UK firms and its main client is Connect Catering
Services is a family owned catering services based in Oxfordshire that delivered best quality
products and services. Several topics are covered in this report which are named as essential
requirements of management accounting, different methods are used in management accounting
report, calculate cost analysis techniques using marginal and absorption costing, benefits and
limitations of different types of planning tools and comparing any two organisations that are
respond in financial problems.
TASK1
P1. Define management accounting with their essential requirements of management accounting
systems
Management Accounting: It is said to be determine internal operations of enterprise and
control various activities to provide accounting information in a systematic way (Baños Sánchez-
Matamoros, 2020). Within Connect Catering Services, firms used this accounting because it
helps to provide information of management and helps to complete day to day operations in
enterprise.
Management Accounting System: According to this system, it helps to provide internal
system of management that used in internal decision making. The report said that identify
various ways to run their firm's operations. For Connect Catering Services, it helps mangers to
used financial data and business action for internal direction of enterprise. Key essential
requirements that are used in management accounting schemes with context to Connect Catering
Services are as mentioned below:
Price Optimization System: This system is determine changes in price level with the
changes in demand and combined data with information on expenditure or stock to improve their
profits. Essential requirements of price optimization system is a practice that used in how target
customers and market find out most effective price that will impact of maximize sales and
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