Report on Management Accounting - Zylla
Added on 2020-06-04
15 Pages4335 Words57 Views
Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................1P1 Essential the Requirements of management accounting...................................................1P2. Explain the different methods of management accounting report...................................3M1...........................................................................................................................................3Task 2...............................................................................................................................................4P3 Calculate costs using appropriate techniques and prepare the income statement of marginaland absorption methods..........................................................................................................4TASK 3............................................................................................................................................7P4 Explain the advantages and disadvantages of different types of planning tools used forbudgetary control....................................................................................................................7P5 Methods by which organisation use management accounting to mange financial problems. ................................................................................................................................................9CONCLUSION..............................................................................................................................11REFERENCES .............................................................................................................................12
INTRODUCTIONManagement accounting system is the tool by which company analyse the financialsituation of business. It is the systematic approach which gives much information to the managerfor effective control. It also assists mangers to take better control on unnecessary expenses. Ithelps to enhance the performance of the management to accomplish the organisation goals.Present report is based on Zylla Company it is a big multinational organisation which changestheir business plans and try to enhance the business expansion. Assignment will explain aboutthe importance of management accounting and its different types of approaches and methods.Furthermore, the calculation of cost accounting and income statement. And the purpose ofmanagement accounting in the organisation. That it helps to measure the corrective action andachieve the organisation target to full fill the needs of customers. It assists to enhance theemployee satisfaction by giving good amount of incentives. P1 Essential the Requirements of management accounting.Management accounting is the most important function in the organisation. Managementaccounting is totally different from financial accounting. In management accounting managerneeds to adopt some innovative changes by which company get more profit(Ax, and Greve,2017.). Manager of the organisation has responsible to take day to day activity in effectivemanner. Management accounting is a term in which manager control and manage theadministration works and create more flexibility in fulfilling the activities. Managementaccounting involves political science, sociology, economics, economies etc. managementaccounting function is not based on double accounting system they only create effectivemanagement plans by organisation achieve their target in effective manner. Managementaccounting is based on statistical and financial data by which manager makes their short termgoals for the organisation(Fullerton, Kennedy, and Widener, 2013.). Zylla is the multinationalcompany its manager has the responsibility to take new management plans to make more profit.Management is the base of every organisation through this function Zylla increase their companyimage and it helps more to satisfy the customer needs. On the other side accounting this word isrefers to statistical term which helps to keep the records of the company. There are muchmanagement accounting system that are used by Zylla company. It also helps to take betterdecision in expansion of new business and take other changes as well. 1
Cost Accounting System: Cost accounting system is related to the day to dayoperational activities in the management. In this system manager needs to analyse the costinvolved in product and services. It helps to measure the inventory costs as well. Cost accountingalso helps to minimize the loss of products those products which gives zero level of profit. Themanager should know that which product is profitable or not. It also helps to maintain thefinancial resources of the Zylla organisation. But sometimes it may become difficult task for themanager to identify the actual expenditure of the product and services(Messner, 2016.). In thatparticular situation cost accounting gives correct method to measure the value. Cost accountingis the main system which helps to minimize the overall expenses during production. Moreover,cost accounting is the best source to minimize the cost risk. And take the best strategic plans. Thus, there are two types of cost accounting job order costing and the process costing.Job order costing means collects the manufacturing cost separately. This job order costing helpsZylla to make new different product and services which is made for some special employees. Onthe other hand Process costing helps to identify the cost from other departments. Manyorganisation produce two different products they have their two different process departmentsthis cost system, helps to this organisation. Inventory Accounting System: This is the system in which company needs to track therecords of all required inventory or resources. In this management accounting company managethe inventory on the basis of given bar codes. And also make sure that inventory is perfect or not.It helps to manage the all required material which is important for the production of goods andservices. This accounting system helps Zylla to improve their inventory records in systematicmanner(Otley, and Emmanuel, 2013.). It also helps manager to determine the inventory costsduring the process. Because the price of the inventory is depended on the purchases. Thismanagement system helps to identify the cost of goods sold and keep the records for future use.There are two methods by which manager measure the inventory “ first in first out” and “last infirst out”. From these two methods Zylla company analyse their inventory position easily. Thissystem helps to make new decision and plans and show the inventory level in the organisation. Italso helps to remove waisted inventory from the organisation. Industry Specific- Accounting: Industry specific accounting system is based on specificindustries in which manager needs to keep the records of daily activities and measure the cost2
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