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P3 Calculation of cost using an appropriate technique

   

Added on  2021-01-02

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Management Accounting
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting system and its types.......................................................................1P2 Management accounting reporting and its types...................................................................3M1 Benefits of management accounting system........................................................................4D1 Integration of management accounting system and its reporting in organisational process.5TASK 2............................................................................................................................................5P3 Calculation of cost using an appropriate technique...............................................................5M2 Various cost accounting techniques.....................................................................................7D2 Data interpretation.................................................................................................................7TASK 3............................................................................................................................................8P4 Budgetary control and planning tools with their advantages and disadvantages...................8M3 Use of different planning tools for preparing and forecasting budgets..............................10TASK 4..........................................................................................................................................10P5 Responses of management accounting system to deal with financial problems.................10M4 management accounting lead to sustainable success in responding to financial problems12D3 Planning tools respond appropriately to resolve financial problems..................................12CONCLUSIONS............................................................................................................................13REFERENCES..............................................................................................................................14
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INTRODUCTIONManagement accounting refers to the process of analysing various events that happen inand out of the organisation. It helps the managers to take an overview of business operations. Itis used by organisations to properly evaluate their execution activities. It provides variousinformations to the internal stakeholders of the company, hence it help them to keep a trackrecord of business and its operational activities. In management accounting various reports aregenerated that renders the accurate information of whole business to the managers and otherstakeholders of the enterprise. It ensure the optimum utilisation of available resources forproduction process (Banerjee, 2012). The company chosen for this report is Network CriticalSolutions Ltd, it is an IT hardware manufacturer company and its head quarter is in UK. Management accounting system and its reporting, various costing techniques, advantagesand disadvantages of planning tools used in budgetary control and various techniques to dealfinancial problems that an organisation have to face are discussed under this project report.TASK 1P1 Management accounting system and its typesManagement accounting is a tool which is used by various managers of the organisationto plan, organise, control and direct business operations and individuals within the organisation.It helps the managers and internal stakeholders to keep an eye on each activity of business.Managers are liable to administrate the business by making strategic decisions. In NetworkCritical Solutions Ltd management accounting helps to set goals and objectives for theorganisation and policies and strategies to attain the same (Bouten and Hoozée, 2013). With thehelp of management accounting system a managers of Network Critical Solutions Ltd cancontrol the business in an effective way and analyse the cost and other expenses of the company.It is also helpful while determining the outstanding amounts by different clients of theorganisation. The managers use four different systems, that can help them while controlling andanalysing activities of business. Those systems are explained below:Cost accounting system: It is mainly used by manufacturing companies to record all theproduction activities. Main objective to use this system is to measure all the costsinvolved in manufacturing process of a products. In this system managers measure andrecord the costs first and then compare the input results to the actual to measure the actual1
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