Management Accounting - DSA manufacturing Assignment
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Added on 2021-02-20
Management Accounting - DSA manufacturing Assignment
Added on 2021-02-20
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Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 ...........................................................................................................................................1P2............................................................................................................................................3TASK 2............................................................................................................................................5P3............................................................................................................................................5TASK 3............................................................................................................................................9P4 ...........................................................................................................................................9TASK 4..........................................................................................................................................12P5 .........................................................................................................................................12CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15
INTRODUCTIONManagement accounting is a procedure to prepare management accounting reports andaccounts that provide reliable and timely financial and statistical information. It is required bythe managers to make daily routine and short term decisions (Chenhall and Moers, 2015).Through the reports internal stakeholders like managers, employees etch determine the businessperformance that weather it is well or not in the market. To better understand the concept ofreport select manufacturing company, DSA manufacturing which is a clothing manufacturingcompany based in the UK working with foreign factories. In the report consist of different types of management accounting system and reportingmethods that provide advantage to organisation. These are helping to smoothly run their businessin efficient way. Calculate cost with the help of suitable techniques and analysis cost to produceincome statement. Along with applied different types of planning tools in the organisation topredict financial problems and prepare effective strategy. Additionally, apply financial tool thatcan help to identify problem with compare other organisation and find out suitable reason. TASK 1P1 Management Accounting: It is a method of examine as well as interactingorganizational information with executives in order to monitor business performance anddevelop policies to improve it. DSA manufacturing apply management accounting to conductinformation on daily basis then analysis actual performance of company. Management accounting system:The particular defined as inner system that is applythrough the manager as a reason to track business activities and record several sections ofcompany. By DSA manufacturing company utilise different types of management accountingsystem to analyse actual performance of company. Cost Accounting System: The particular system utilised by the company to know the costof different activities like manufacturing. It is applied by the DSA manufacturing in order to getdetail information of expenditure that are linked to producing clothes and other services.Through this system add value to the business and help to get information of all the expenditure.Inventory management system:It is applied by manufacturing company to analysis thedifferent stages of production in suitable way. It is applied by the DSA manufacturing company1
to track record of inventories at every stage of producing. There are three methods to calculateinventory management such as LIFO, FIFO and AVCO. LIFO – Last stock will be used for production procedure.FIFO – Firstly purchased raw material utilised for production process.AVCO – According to this methods In DSA manufacturing company utilised FIFO method because through this methodproperly utilise items in the company. Price optimization system: As it names states, it is utilised by the manufacturingcompany to set effective price structure for profit maximization. DSA manufacturing companysell out different types of clothes and for this required set price structure as per the customerrequirement. It is important to determine the different reviews of customer regarding to productthat helps to attract them for purchase their products (Englund and Gerdin, 2014). Job order costing system:Such system applied by the manufacturing company toestimate cost of every single unit in the business. Job order costing system applied by the DSAmanufacturing to analysis cost of each and every cloth before sell out to clients. It is essential forbusiness because this system provides specific information of direct labour, material andoverhead. Origin, role and principle of management accountingManagement accounting was developed through accounting cost due to commercialenterprise modification. It plays major role in every organisation like profit maximization, stockarrangement, decision maker and many more. After apply it in the company, they get rightinstruction for different policies. There are defined different types of principles of managementaccounting such as - Influence: Through communication skills influence to customer for purchase theirproducts in company. Relevance: It provides actual and sufficient information to manager that utilise by thecompany at right time (Honggowati and et.al., 2017). Trust: Management accounting provides different types of reports which must be reliablebecause on the basis of these reports stakeholders take appropriate decision for furtherinvestment. Difference between management and financial accounting2
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