logo

Management Accounting in Jupiter PLC

19 Pages4107 Words129 Views
   

Added on  2020-10-22

Management Accounting in Jupiter PLC

   Added on 2020-10-22

ShareRelated Documents
Management Accounting
Management Accounting in Jupiter PLC_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Explaining management accounting with its essential requirements and types....................11.2 Explaining different methods of management accounting reporting.....................................21.3 Evaluating benefits of management accounting system with its application........................21.4 Critical evaluation of management accounting system and reporting is integrated withprocess of organization................................................................................................................3TASK 2............................................................................................................................................4TASK 3............................................................................................................................................53.1 Explaining advantages and disadvantages of planning tools with application of Budgetarycontrol .........................................................................................................................................5Analysing application of various planning tools for forecasting and preparing budget..............6TASK 4............................................................................................................................................74.1 Comparing organization for purpose of adopting management accounting system torespond to financial problems......................................................................................................74.2 Analysing context of financial problem that management accounting will lead tosustainable success of organization ............................................................................................94.3 Evaluating planning tools of accounting for purpose of solving financial problems to leadwith sustainable success.............................................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
Management Accounting in Jupiter PLC_2
INTRODUCTIONAccounting is replicated as process of identifying, measuring and communicatingeconomic data for allowing judgements and informed decision through users of data as perAmerican Accounting Association. The present report will discuss about essential requirementsof management accounting with its types. This report will reflect various types of managementaccounting reports with its need as well. It will also show various planning tools with itsadvantages and disadvantages and benefit to Jupiter PLC. In the similar aspect, it will articulateplanning tools for responding to solve financial problems to lead organization for attainingsustainable success.TASK 11.1 Explaining management accounting with its essential requirements and typesManagement accounting system is replicated as process of identifying, measuring,analysing, communicating and interpreting financial information for accomplishing objectives oforganization. It is also known as cost accounting. Financial and management accounting couldbe differed by management accounting information with objective of assisting managers fortaking decisions but financial accounting has targeted of offering information to its externalparties. The process of preparing management reports and accounts offers accurate and timelystatistical financial information required through managers for establishing regular and decisionof short term. It consists of numerous reports which are formed for accomplishing managementrequirements. There are various types of management accounting system such as job costing,inventory management and cost accounting system (Nitzl, 2018).Job costing system: It is referred as system of allocation of cost of manufacturing tospecific individual item or might be product batched. It had engagement of practice ofaccumulation of data on cost on basis of production job or particular service of JupiterPLC. The information is required for submitting cost data to a customer under contractwhere cost id directly refunded. It has requirement of accumulating three types of directinformation about labour, overhead and direct material as well.Cost accounting system: It is a framework which is applied through Jupiter PLC forapproximate the cost of products for inventory valuation, cost control and profitabilityanalysis. With context of this system, cost allocation is performed on basis of traditionalor activity based costing system. The cost of actual product is important for effective1
Management Accounting in Jupiter PLC_3
roles. Cost accounting is type of accounting system whose objective is to capture JupiterPLC's cost of production via weighing its input cost of production.Inventory management: It is referred as method of overseeing and controlling theordering, application and storage of various components where Jupiter PLC's productionof sold goods. The efficient tracking of quantities across location of stock and managershad gained insight and capability for taking decision about sufficient inventory.1.2 Explaining different methods of management accounting reportingManagerial accounting lays special emphasis on internal information gained throughfinancial accounting. Generally, it is applied for decision making, planning and controlling.Management accountants has high dependency on various financial statements consist of incomestatement, balance sheet and cash flow statement. The types of management account reports are:Cost reports: The cost has been calculated of manufactured items through managementaccounting. It is performed via considering cost, raw product overhead, labour along withconsideration of extra cost. The aggregate is categorised in amount of goods which areproduced as all data is directly summarized in cost report. Generally, this report helps inpermitting managers with capability of reflecting cost value of products vs selling price.The profit margin has been controlled and planned through managers.Budget: It is one of key element for preparing budget in management accounting.Budgets are directly formed with applying budget of previous year and adjusted inprediction of future. All revenue and expense sources are listed in budget of Jupiter PLC.It had been attained for attaining its goals and objectives to stay in budgeted amount.Performance reports: The budgets are applied through management accountants forcomparing expenditures and revenue to budgeted amounts. The computed variations areevaluated by shaping innovative budgets along with concerned information of amountlisted in this performance report of Jupiter PLC (Hiebl, 2018).1.3 Evaluating benefits of management accounting system with its applicationThe benefits of specific management accounting system are evaluated as follows:Job Costing system: In this system, cost might be directly ascertained at stage of jobcompletion and it provides scope for purpose of controlling cost. The profit which hadbeen earned through each individual job is replicated as job costing. Management couldbe able for estimating cost of job with context of previous records. However, there is2
Management Accounting in Jupiter PLC_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Accounting System - Assignment
|13
|4536
|84

Management Accounting Assignment (Jupiter Plc)
|18
|4038
|480

Management Accounting Assignment- Jupiter PLC
|17
|4549
|410

(solved) Management Accounting System: PDF
|16
|4170
|172

Management Accounting Assignment : Jupiter PLC
|18
|5245
|210

Introduction to Management Accounting System and Its Application in Jupiter plc
|17
|4970
|482