logo

Introduction to Management Accounting INTRODUCTION 1 TASK 11 P1. Management Accounting and it's essential requirement

   

Added on  2020-11-12

13 Pages4026 Words188 Views
ManagementAccounting
Introduction to Management Accounting INTRODUCTION 1 TASK 11 P1. Management Accounting and it's essential requirement_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Management Accounting and it's essential requirement ......................................................1P2. Explain different methods of management accounting reporting:........................................1TASK 2............................................................................................................................................1P3. Costing techniques.................................................................................................................1TASK 3............................................................................................................................................2P4.Advantage of Disadvantage of different types of planning tools which is used for thebudgetary control.........................................................................................................................2TASK 4............................................................................................................................................2P5. Evaluate how organization adapting management accounting system to response theirfinancial problems........................................................................................................................2CONCLUSION................................................................................................................................2REFERENCES................................................................................................................................3
Introduction to Management Accounting INTRODUCTION 1 TASK 11 P1. Management Accounting and it's essential requirement_2
INTRODUCTIONManagement accounting is the process where manager of the company done variousactivities in order to achieve their goals & objectives (Collis and Hussey, 2017). It is a businesspractices which include the various activities which help the organization to increase theirefficiency or effectiveness. It is also called managerial accounting where manager perform theirtask in order to increase their productivity or profitability and it further helps in achievingbusiness goals & objectives. Excite Entertainment Ltd chose for the better understanding of thisconcepts which operates in leisure and entertainment industry in the UK. This report include thevarious topics such as management accounting and it's essential requirement. Along with this, itinclude the management accounting reporting, different costing methods and planning toolswhich helps in solving financial problems in order to increase the productivity or profitability.TASK 1P1. Management Accounting and it's essential requirement Management accounting: It is also called managerial accounting which analyse thebusiness cost and other operational activities (Schaltegger, Burritt and Petersen, 2017). With thehelp of management accounting, company prepare their financial report which help the managerto build effective strategy and take decision in order to achieve their organizational goals &objectives. With the help of management accounting, manager of the Excite Entertainment Ltdbuild strategies, plans and policies. Management accounting system and it's essential requirement:Management accounting system help the organization to maintain their operationalactivities in order to increase their productivity or profitability. Their are some systems whichhelp the manager of the company to apply in their organization and increase the efficiency oreffectiveness. Which further helps in increasing productivity or profitability and it well bediscussed below: Inventory Management System: It is a system or software which help the business tomaintain their stock or regular track their inventory (Humphrey and Miller, 2012). With the helpof this system, management will track the level of inventory. In the Excite Entertainment Ltd,manager can adopt this system which help the business to maintain their stock which secure theorganization from shortage or wastage of stock. Company can reduce their carrying cost as well1
Introduction to Management Accounting INTRODUCTION 1 TASK 11 P1. Management Accounting and it's essential requirement_3
as reduce the wastage which occur due to large quantity. This system required to keep track theirinventory level on regular basis which reduce the cost and it will further increase the productivityas well as profit margin. Cost Accounting System: It is a costing system, which help the manager of the companyto reduce their each product & services cost which automagically the production and thenprofitability. Low cost of product will increase the demand of the product which increase the saleand profit margin. This system required by the Excite Entertainment Ltd which can reduce thecost of their products & services which increase the sale and then profit margin. With the help ofthis system, manager take effective decision and prepare various strategy to reduce the or controlfor the longer period. Price Optimisation System: It is a mathematical function which help the organization toidentify different price rang which also measure the customer's reaction according to differentprice range (Holsapple, 2013). By adopting this system, manager of Excite Entertainment Ltdcan determined that which option is suitable for the company. With the help of this, managerbuild strategy to accomplished their goals & objectives in order to increase productivity orprofitability. It is required to fix the price of product which meet the objectives of the consumers.Above mention management accounting systems used by the Excite Entertainment Ltdwhich help them to increase their efficiency as well as effectiveness which help the organizationto increase their productivity which automatically increase the profitability. P2. Explain different methods of management accounting reportingManagement accounting reporting include the various business or accounting reportswhich help the manager to identify the performance of individual as well as for wholeorganization. With the help of reporting system, manager can build various strategy which helpsat the time of decision making process. Accounting report prepare according to financial yearwhich helps in analysis for the operational functions. Their are various management accountingreport and it will be discussed below: Budget Report: This is standard budget which is prepared as per the previousinformation or experiences. This budget include all the revenues and expenditure which help themanager to perform all the activities according to it (Takeda and Boyns, 2014). With the help ofbudgeted reported, manager of the company will complete their each project or task as per the2
Introduction to Management Accounting INTRODUCTION 1 TASK 11 P1. Management Accounting and it's essential requirement_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Management Accounting Assignment Solution - Entertainment Ltd
|14
|3750
|460

Management Accounting Assignment - ABC Ltd
|15
|4877
|51

Management Accounting Assignment : Excite Entertainment Ltd
|13
|4139
|55

Management Accounting and Systems
|11
|2760
|66

MANAGEMENT ACCOUNTING INTRODUCTION
|16
|4237
|193

Management Accounting and Different Management Accounting Systems
|11
|2890
|46