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Management Accounting: TSR

   

Added on  2021-02-17

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MANAGEMENTACCOUNTING
Management Accounting: TSR_1

Table of ContentsINTRODUCTION...............................................................................................................1TASK 1 .............................................................................................................................1P1: Define management accounting and various types of management accountingsystems.....................................................................................................................1P2: Discuss various methods utilised in managerial accounting reporting ..............2TASK 2...............................................................................................................................4P3: Calculating cost of techniques and preparation of profit and loss account........4TASK 3...............................................................................................................................7P4: Merits and Demerits of different types of Budgetary controls............................7TASK 4...............................................................................................................................8P5: Using management accounting techniques in responding to financial problems8REFERENCES................................................................................................................10
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INTRODUCTIONManagement accounting is one of the branch of accounting is related with theprocess of preparation of the accounting reports which is prepared so that the internalmanagement of company can make decision regarding the Objectives of the companyand determine the policies according to the future trends of the market. Managerialaccounting reports are prepared by the accountants of company by utilising financialstatements of the company such as Balance sheet, Statement of profit and loss accountand cash flow statement. These reports also consider the future economic and Noneconomic activities of market that will be prevalent in future. This report is prepared on TSR pvt. Ltd. and discusses about the significance ofmanagement accounting and techniques. Various planning tools used in managementaccounting process and the use of accounting tools that assists in responding tofinancial problem. TASK 1P1: Define management accounting and various types of management accountingsystemsManagement accounting is the process of accounting which deals with thepreparation of managerial accounting reports so that the internal management of thecompany can determine the objectives and formulate policies for the company byutilising those reports. Managerial accounting reports make use of the financialstatements of the company and also considers the future economic and non economicactivities of the market that will be prevalent in future so that the managers can makedecision effectively and it does not impact the operations of the company in future.Types of management accounting system and their need in organisation: The system of management accounting are formulated in such a manner thathelp the managers to prepare the accounts and reports so that the managers can takeeffective decisions for the company.Product Costing: This process of costing is utilised to make the estimationabout the all over cost that is used in the production of a specific product. Thisassist the managers in making estimation about the expenses that is incurred in1
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the process and allocating those overheads. This system can be implemented inthe small business organisation which have simple business operations.Cost accounting system: This system of accounting is used to estimate theoverall cost and expenses that will be incurred in the operation of business. Thissystem assists the managers in making an estimation about the expenses thatwill incurred in future, which makes the easy in allocating the funds accordinglyand in turn also helps the company in determining the profitability of thebusiness.Inventory management system: The Inventory management systems isadopted by every organisation no matter what is its size, as every company hasthe responsibility to efficiently manage the stocks of the company. This systemdeals with the management of inventory level of the company in such a mannerthat manufacturing department and final consumers get the goods as and whenrequired. Different companies use the different systems of Inventorymanagement for efficiently managing their stock levels. The different types ofinventory management systems that are adopted by the companies includeLIFO, FIFO, weighted average system etc. as per the nature of the products oforganisation. Job costing: Under this costing methods the managers of the company get anestimation about the cost of the similar units of the product or regarding theparticular job function. This helps the internal management in estimating theprofitability from the specific job function, so that they can invest the funds of thecompany in those job function which are most profitable.P2: Discuss various methods utilised in managerial accounting reporting The reports that are made under managerial accounting are formulated for thepurpose of supporting internal management in the decision making process and makingpolicies for the company. These reports include financial as well as non financialtransactions that has been adoptedtaken in the companies. This is the reason why it isso significant to prepare these reports. The various reports prepared under managerialaccounting are as under:2
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