logo

Management Accounting - Tesco company

   

Added on  2021-02-20

16 Pages4136 Words39 Views
Management Accounting

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1PART 1.......................................................................................................................................11. Management accounting systems............................................................................................12. Management accounting reporting..........................................................................................13. Benefits of management accounting systems.........................................................................14. Integration of MA systems and MA reporting in an organization..........................................1Part 2: Planning tools used in management accounting..............................................................1PART 1.......................................................................................................................................1Analysis of financial statement of Tesco Plc:.............................................................................1CONCLUSION................................................................................................................................1REFERENCES................................................................................................................................1

INTRODUCTIONManagement accounting is an effective process as it helps in evaluating various otherinformation in order to take strategic decision. Management accounting is very useful inplanning, strategic management, finding solution to the problem, etc. This study will examine the benefits and requirements of management accountingsystem. It will also critically examine the various different methods of management accountingreports. This study also determines and evaluates the integration of MA systems and MAreporting in an organization. This study also includes different planning tools such asbenchmarking, break even analysis, cash flow method, etc. furthermore, this study evaluates theMA techniques and methods. Tesco company is a retail company in Europe which effectively provides various groceryproducts and other merchandizes. They have started their operations from the year 1919 andprovide various effective product and services. TASK 1PART 11. Management accounting systems.Management accounting (MA) helps in analysing various managerial information whichhelps in strategic decision making for the internal stakeholders of the company. It is very usefulin forecasting, new product analysis, valuation of stocks, variance analysis, break even analysis,benchmarking, comparative analysis and capital budgeting analysis, etc. Cost accounting system: This system helps in effectively estimating the various cost ofthe products and its also helps in eliminating the unnecessary cost attached at the time ofproduction and manufacturing of the products and rendering services. This method is very usefulin evaluating the input cost of each production and also evaluate the areas where cost can beeliminated in order to attain economies of scales (Drake, Roulstone, and Thornock, 2016). It isalso very useful in evaluating the financial performance of the Unicorn company. It is veryuseful in cost control programs which results in improving the net margins of the company in thefuture. 1

Inventory management system: This system keeps a track of the level of inventory in theproduction unit which in turn results in higher operational standards and efficiency. It is useful intracking various inventory levels, sales, deliveries, etc. it is very useful in material tracking,inventory forecasting, automating the records by effectively integrating with ERP (Kaplan andAtkinson, 2015). It is very useful in effectively managing all the logistics in a systematic andefficient manner. Inventory management is crucial because it is a major part which results inongoing operations of the business. It is very useful to take timely decision in order to managethe operations of the business. It is also very useful in eliminating the manual process so thatthey can focus on more important task. Job costing system: This system is an effective process which helps in evaluating thecost for the specific product or service. This tool is used to evaluate the cost attached with eachproduction unit of a particular job. This is very useful in identifying the most profitable and non-profitable units of job. It takes into consideration the material, labour and overhead cost of theeach job. It is a very crucial activity and it helps manager of the organization to keep the track ofthe various other expenses (What is job order costing?, 2019). It helps in eliminatingunnecessary jobs in order to attain higher profitability for the Unicorn company.Price optimization system: This system is useful in analysing the behaviour and attitudeof the customers with respond to the change in the prices of different products and servicesrendered (Drake, Roulstone, and Thornock, 2016). This method helps in determining the mosteffective price which helps in attaining the goals and objectives of the company by effectivelymaximizing the operational profit. It is very useful in deciding the best competitive price whichresults in higher operational standards and efficiency. 2. Management accounting reporting.Management accounting reporting contains all the necessary information which helps inproviding all the necessary information which helps in planning, regulating and judging theeffectiveness of various activities of the organization (Merchant and White, 2017). Managementaccounting reporting helps internal managers of the Unicorn company to take necessary decision.Budget report: This helps in estimating the cost of the each budgeted activity which inturn helps in comparing the actual budget with the set budget and evaluate the cause of thevariance (Otley, D., 2016). It helps in effectively estimating the cost of the activity and in case of2

End of preview

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

Related Documents
Management Accounting - Solved Assignment
|13
|3787
|38

Management Accounting Assignment - MA system
|8
|2514
|50

Requirements of Management Accounting Systems
|21
|5731
|102

Evaluation of Management Accounting Systems and Reporting
|18
|4527
|51

Implementation of Management Accounting in an Organization
|22
|4919
|39

Management Accounting Assignment | Jaguar land Rover Automotive Plc
|18
|5717
|77