Management Accounting Concepts

Added on - 22 Nov 2020

  • 13

    Pages

  • 3941

    Words

  • 23

    Views

  • 0

    Downloads

Trusted by +2 million users,
1000+ happy students everyday
Showing pages 1 to 4 of 13 pages
MANAGEMENTACCOUNTING
Table of ContentsINTRODUCTION...........................................................................................................................1LO1..................................................................................................................................................1P1. Management accounting concepts and its needs..............................................................1P2 Different methods applied for management accounting reporting...................................3LO2..................................................................................................................................................5P3 Cost analysis to prepare an income statement using absorption cost and marginal cost..5LO3..................................................................................................................................................7P4 Define advantages and disadvantages of differed kinds of planning tools which used inbudgetary control and activity based costing.........................................................................7LO4..................................................................................................................................................8P5 How Organizations are adapting management accounting systems to respond to financialproblems.................................................................................................................................8CONCLUSION...............................................................................................................................9REFERENCES..............................................................................................................................11
INTRODUCTIONManagement Accounting is used by managers for better information of organization andid is a type of provision made for systematic decision making to assist management andperformance business. Internal activities of firm requires perfection and accuracy in each andevery task.. Zylla also adopts various techniques and methods of management accounting toreach its financial objectives. It uses these tools to decide costs and resolve financial problems insmart way. Management accounting is used in devising planning, decision making, and provingexpertise to in various reports. There illustration of risk plan, strategic management andperformance in this report. Its techniques help in operational ability and cost mechanism. Presentreport will represent various budgetary techniques, costing system, reporting methods andtechniques of appraisal in internal administration (Kotas, 2014). It emphasizes on tasks,operations, detailed information and other divisions. It also includes partnering in variousmanagement systems to assist formulation and implementations of strategic techniques.It variesfrom financial accounting in various ways. Creditors, shareholders use financial accountingpublicly while management accounting is used within organization itself. It is computed towardsthe needs of managers by using management information system. There is variance analysis,activity based costing, transfer pricing and much more.LO1P1. Management accounting concepts and its needsManagement accounting is a needed for evaluation of data for basic needs oforganizational goals. It can be considered as a mathematical tool which fix data in assertive formof decision that business making and planning for managerial professionals to predict budgets indifferent functional departments. These techniques are targeted in a prominent way in anorganization with complete effectiveness to attain managerial objectives. It is a combination offinancial and non-financial statements to provide data so that outstanding decisions are taken inorganization.Various phases of management are seen techniques of accounting are as follows:Job Costing: Transaction activity determines costs incurred in each and every activity ofbusiness. Costs are required in every department to demonstrate its requirement (Ceulemans,1
Molderez and Van Liedekerke, 2015). Thus, all mandatory records are made in accountingsystems like direct labor, direct material and other related costs.Inventory management: It helps in maintenance of export-import of business. It depends onmanaging the steadiness of inventories. It should be kept in mind by the production departmentthat business profitability and consumer demand are major goals of any firm and so organizationshould be cautious for it.Price optimization: Firm earns profit by putting the best and profitable price. Various prices arefixed up on products and services by rising profit in business. Thus, depending on each and everyproduct such type of variations are made at various locations. Zylla earns profit if suchtechniques are operated carefully.Cost Accounting: Cost incurred at part of business is illustrated by Zylla. Therefore, for theproduction of goods and services huge amount of fund is required (Collier, 2015). So there isbalancing of fund required and investment of fund in production costing technique so that fruitfulresults are availed. This technique is mainly useful to know actual cost incurred on every productto bring results. Like, this perfect management of firm can be confirmed and its practices areoptimized that are based on cost efficiency and capability. Zylla uses this technique in a verydeliberate and technical way.Auditing: Preparation of audits helps in upbringing of work culture of organization in all possibleways. All managerial professionals are bound so that meaningful decisions are taken internalinformation are known by the accountants relevant to operating expenditures, profit, costs andother information. Zylla has perfect functional and operational steadiness which has been madeby regular improvements in internal practices of administration. Assets, liabilities and profits aremajor accounting parts of accounting systems. Auditing aids in determining these parts in asuitable time period. It can be considered as the best form of examining and providing surety ofcompliance to requirements of firm. There is main use of internal audit. It is done by first partyof organisation which doesn't possess any absolute interest in its outcomes. Compliance,performance, corrective actions and risks are major tasks of audits. Mainly four phases of auditexist i.e audit preparation, performance, reporting, follow up and reporting. Auditor, clients andvarious other paties perform the first phase (Dekker, 2016.). Second phase is known forfieldwork which is performed for gathering of information and that includes practices like on-siteaudit, meeting with auditee, understanding the whole process and finally controlling the entire2
desklib-logo
You’re reading a preview
Preview Documents

To View Complete Document

Click the button to download
Subscribe to our plans

Download This Document