Management Accounting: Concepts, Reports, and Techniques

Management Accounting

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Concept of management accounting and its essential requirements......................................1
P2. Explain the different types of management accounting reports which are used for reporting
purpose.........................................................................................................................................3
M1 Benefits of MAS and its application.....................................................................................3
D1. Accounting systems and reporting........................................................................................4
TASK 2............................................................................................................................................5
P3. Calculation with help of absorption and marginal cost.........................................................5
M2. Various management accounting techniques for financial documents...............................8
D2. Financial reports for various business operations.................................................................8
TASK 3............................................................................................................................................8
P4. Benefits and disadvantages of various planning tools...........................................................8
M3. Use of various planning tools for forecast........................................................................10

TASK 4..........................................................................................................................................11
P5. Comparison of various organization are adapting management accounting systems.........11
M4. Management accounting systems leads to sustainable success by responding financial
problems....................................................................................................................................13
D3. Planning tools helps in solve financial problems...............................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Management accounting has several methods in the field of finance that are employ by
organisations. Further, this can be regarded as a process of accounting where professionals
analyze financial & non-financial data for management aspects reporting (Arnaboldi, Lapsley
and Steccolini, 2015). For corporate organizations this accounting has specific number of
functions and responsibilities. For the better understanding of this concept, Innocent Drinks UK
selected which offering dairy free range of smoothies. The report includes numerous forms of
MAS and organizational positions. In addition, different kinds of accounting reports used for
reporting purpose. Furthermore, financial statements are also generated in accordance with MAS'
commitment to the resolution of financial problems encountered by business entities.
MAIN BODY
TASK 1
P1 Concept of management accounting and its essential requirements
Management accounting:
It may be interpreted as a method of accounting process wherein qualitative knowledge is
routinely handled to be implemented in order to produce internal reports (Busco and Quattrone,
2015). Management accounting plays a vital role in several aspects where it helps in business
planning, decisions making process, for better control of operational process etc. There are
several accounting systems which are followed by the managers of Innocent Drink UK, these are
discussed below:
Different management accounting systems:
Cost accounting method: It is known as a framework which is best related to the
calculation process for potential spending by corporate organizations. The function of this
accounting system is not restricted until calculation, but also helps in identifying cost variance.
This accounting system is important in businesses to help control operational activities, such that
the sum of expenditures can be minimized. Underneath the Innocent Drinks UK, this
management accounting system is presented with the objective of minimise the cost of their daily
free products in comparison to the estimate.
Price optimization system: This accounting system is correlated with a method of
determining price of their product & service according to the product's demand and reliability. It
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