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P2. Different Methodologies utilised in Management Accounting Reporting

   

Added on  2021-02-19

16 Pages5248 Words44 Views
MANAGEMENTACCOUNTING

Table of ContentsINTRODUCTION...........................................................................................................................4TASK 1............................................................................................................................................4P1. Various Management Accounting Systems and their essential requirements:......................4P2. Different Methodologies utilised in Management Accounting Reporting:...........................6M1. Evaluating benefits of Management Accounting Systems and their application inorganisational context..................................................................................................................7D1. Critically evaluate how management accounting systems and management accountingreporting is integrated within organisational processes;..............................................................8TASK 2............................................................................................................................................8P3. Computing Costs through Marginal and Absorption Costing to prepare financial incomestatements:....................................................................................................................................8Marginal Costing ............................................................................................................................8M2. Application of management accounting techniques to produce appropriate financialreporting documents...................................................................................................................10D2. Produce financial reports that accurately apply and interpret data for a range of businessactivities:....................................................................................................................................10TASK 3..........................................................................................................................................10P4. Advantages and Disadvantages of various planning tools utilised to exercise budgetarycontrol:.......................................................................................................................................10M3. Analysing use of different planning tools and their application for developing andforecasting budgets....................................................................................................................12TASK 4..........................................................................................................................................13P5. Examining how companies adapt to management systems in the face of financial issues.13M4. Analysing how management accounting systems contribute towards sustainableorganisational success................................................................................................................15D3. Evaluating how accounting planning tools help in resolving financial problems:.............15CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16

INTRODUCTIONThe concept and notion of 'Management Accounting' is directly linked to the proceduresand structures taken by the organizations to guarantee that their inner activities functionsmoothly. It therefore involves processes/tasks that recognize, appropriately measure, controls,assess, explicate and transmit to executives at all levels crucial data about corporate operations.This enables them to make informed choices and facilitates the effective fulfilment oforganizational objectives within a specified time-frame or period (Achleitner and et.al, 2014). The study explains management accounting's concepts and its purpose, ways throughwhich management accounting's system contributes in success of entity, planning tools andcosting techniques in context of Oshodi Plc. It is manufacturing entity, engaged in production offruit juice under the brand name JOJO fruit-juice, for all age of customers. Using data ofrespective company, applying Marginal and Absorption method's of costing net income isgenerated. This study also describes how advantageous or disadvantageous planning tools are forcompany and compares distinct business entities embracing systems to react to differenteconomic and financial issues. TASK 1P1. Various Management Accounting Systems and their essential requirements:Management Accounting can be described as a processes that facilitates the evaluation ofdifferent corporate operations in order to allow business personnels to make better choices froma short/long-term view. In this context, to transform raw or unclassified data into meaningful oruseful information, it is vital for a manager and some other personnels to analyse their tradeenvironment's internal and external elements effectively. It finally assist business to attainbenefits in competitive environment (Aouni, McGillis and Abdulkarim, 2017). As Oshodi Plc isselling its fruit juice with brand label of JOJO fruit-juice so adopting management accountingcan help company's owners to achieve targeted expansion. Company being a production orientedentity carrying on wide processes and tasks which useful in accomplishment of goals. Belowdiscussed are important management accounting systems used by respective company, asfollows:Price Optimisation System: Price determination is part of management's strategies andthey make changes in prices to set a most effective value of product while maintaining profit

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