Management Accounting Assignment (Jupiter Plc)
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Added on 2020-12-24
Management Accounting Assignment (Jupiter Plc)
Added on 2020-12-24
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MANAGEMENT ACCOUNTING
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.Explaining management accounting and requirement of different type of managementaccounting system.......................................................................................................................32. Explaining different method used for management accounting reports.................................43. Evaluating the benefit of management accounting system and their importance in JupiterPlc................................................................................................................................................54. Critically evaluating the integration of management accounting process and reports inJupiter Plc....................................................................................................................................6TASK 2............................................................................................................................................71. Calculation of profit and loss statement using absorption costing..........................................7TASK 3...........................................................................................................................................81.Explaining the advantage and disadvantage of different type of planning tools used inBudgetary control........................................................................................................................82. Analyse the use of different planning tools and their application for preparing andforecasting budget.......................................................................................................................9TASK 4..........................................................................................................................................111. Compare how organisation are different in adapting, management accounting system inresponding to its financial problems.........................................................................................112. How management accounting helps in leading the organisation to sustainable success......123. Evaluating planning tool that helps in responding to financial problem and businesssustainable growth.....................................................................................................................13CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONManagement accounting plays an important role in the survival and growth of anorganisation. In the competitive corporate world, there is a need for an organisation to have amanagement accounting system for the efficient running of the financial and operational activity.Management accounting system helps in providing different informations from all department sothat the management could make make decisions and strategies for enhancing the performance oforganisation. The present report is based on Jupiter Plc, manufacturing company. The presentreport will help in understanding different system and techniques of management accountingsystem in company. The report will discuss the important of different accounting system incompany. Report will also discuss various method for management accounting reports. Further,the report will evaluate the integration of management accounting system andreporting in Jupiter Plc. The report will include the income statement by using marginal andabsorption costing techniques. Moreover, the report will analyse the application of planning toolof budgetary control in Jupiter Plc. Present report will also discuss the management accountinghelps in responding to financial problem in company.TASK 11.Explaining management accounting and requirement of different type of managementaccounting system. Management accounting or managerial accounting is a process of preparing andproviding the management and higher authority the financial Information of the company. Thefinancial information is very important for management to make strategies and day to daydecisions regarding operations of the company . Management accounting helps the managementof Jupiter Plc to make decisions regarding planning, organising, controlling budget making forthe business.The requirement of different type of Management accounting system for Jupiter Plc are:Inventory management system: It is the process of supervising the inventory and its flow in acompany. Its manage the transfer of raw material from manufactures to thee finished goods inwarehouse (What is Management Accounting? , 2018). It helps the Jupiter Plc to facilitates itssales as the inventory management will keep all the records of goods.
Job Costing: It is a process in which cost will be allocating to each product for manufacturingthat enables in determining the expenses incurred in the production processes of each product(Kaplan and Atkinson, 2015). It will help the manager of Jupiter Plc to keep record of eachproduct expenses that includes, overhead, direct material and direct labour cost. Price Optimization: It is a mathematical tool of calculating the differences in demand of aproduct with changes in prices of a product (Laudon and Laudon, 2016). It helps in providing theinformation of cost and inventory level to determine the price that brought the profit to thecompany.Cost accounting: It is a process of estimating the correct cost of the product to analyse theprofit, inventory valuation and cost control (Hilton and Platt, 2013). A company can ascertain thecost of product, when the company knows a profitable value of that product. It helps themanagement of Jupiter Plc to make the financial statement preparation.2. Explaining different method used for management accounting reports.The reports that contains the information regarding the financial transactions andaccounting are called management accounting reports. Management accounting reports areimportant for the managers of Jupiter Plc to make decision regarding future goals and objectiveof the business (Types of Managerial Accounting Reports , 2018). These report includes thedetail information regarding company's available cash, sales revenue, company's accountspayable and receivable etc. the preparation of the management accounting reports are thecontentious process as it requires in decision making process regarding the operational andfinancial performance of the company.The different management accounting reports that would help the Jupiter Plc are:Budget reports: It is the fundamental reports that helps the management of Jupiter Plc thathelps in measuring the performance of company with in a specific period of time (Schalteggerand Burritt, 2017). A budget helps in estimating total expenses of company for a specific timeperiod which based on the prior year's expenses. According to that budget, cost will be allocatingto different department in the company. Budget report will help in analysing the actualperformance of company with the budgeted plan.
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