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Management Accounting INTRODUCTION 1 TASK 11 P1 Management Accounting System and Its Application in Organisational Context

   

Added on  2020-10-22

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ManagementAccounting
Management Accounting INTRODUCTION 1 TASK 11 P1 Management Accounting System and Its Application in Organisational Context_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting and essential requirement of management accounting system......1P2 Different methods of management accounting reporting......................................................3M1 Identify the benefits of management accounting system and it's application in theorganisational context.................................................................................................................4D1 Critically evaluate that how management accounting system or management accountingreport linked within organisational process................................................................................5TASK 2............................................................................................................................................5P3 Prepare income statement by using marginal & absorption costing techniques....................5M2 Management accounting techniques and financial reporting documents.............................9D2 Financial reports which applies to interpret business activities............................................9TASK 3..........................................................................................................................................10P4 Advantages and disadvantages of different type of planning tools of budgetary control....10M3 Use of planning tools for preparation and forecasting the budgets....................................12TASK 4..........................................................................................................................................12P5 Comparison of organisations in which they are adopting management accounting systemsto solve financial problems.......................................................................................................12M4 Management accounting in response to solve financial issue that can lead to thesustainable success....................................................................................................................14D3 Planning tools to resolve the financial problems................................................................14CONCLUSION..............................................................................................................................14REFERENCE.................................................................................................................................16
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INTRODUCTIONManagement accounting also called managerial accounting where manager use the pastfinancial information to perform better in the future through developing various strategies. It is amanagement tool which is used for the internal purpose and it will help the manager to identifytheir day to day operational activities (Alsharari, Dixon and Youssef, 2015). With the help offinancial information manger develop a various strategies that further helps in decision makingprocess and make them capable to achieve their business goals & objectives. To be understandbetter, this report chose the BRIGHTSTAR company it provide the financial solutions to theirclients in the UK market for direct consumer proposition. It provide lending solutions formortgage, finance for residential mortgage short term lending, loan lending market etc. It'sheadquarter in Essex and also have three offices in across the UK's nation. This report includethe, management accounting & essential requirement of the management accounting system anddifferent methods used by the organisation for preparing accounting report. Along with this,report include the calculation of income by use of absorption & marginal costing method andadvantage & disadvantage of planning tools. In addition, it included that how organisations facethe financial problem by using management accounting system or report. TASK 1P1 Management accounting and essential requirement of management accounting systemManagement accounting is the managerial process which help the manager to handle theinformation regarding their company's finance. In the management accounting, manager use thefinancial information to develop various strategies that helps in decision making process. It isused for the internal purpose that further profitable for the organisation to achieve their businessgoals & objectives. In the BRIGHTSTAR company, manager use their past information of theirclient which help them to develop further effective lending solutions to their customers (Arroyo,2012). Management accounting system help the organisation to perform their operationalactivities in effective way. Where manager of the BRIGHTSTAR company adopt some of thesystem that helps in achieving business goals & objectives. There are some different types ofmanageable accounting system which help the company to manage their operational functions.These are discussed below: 1
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Inventory management system: It is an inventory management process wherecompanies adopt this process or software to keep record of their inventory. In theBRIGHTSTAR, manager adopt this system to generate their database of client informationwhich help then to identify their total client on regular basis. Because in the manufacturingbusiness company record their inventory level such as raw material but in the service sectormanager keep their customers record where they serve their services (Baars and et.al., 2015). It isrequired for BRIGHTSTAR company because it provide the various solutions regarding lendingso they categories their lending options and maintain records according to different facilitiesprovided by the company to their clients. Cost accounting system: This system help the company to identify their product cost ofeach unite. With the help of this method manager can analyse that which variable cost is highand low. It will provide the exact each unit cost of product so company identify their profit andwith the help of this manager develop further strategies which helps in achieving business goals& objectives. Manager of BRIGHTSTAR company use this method or identify the cost of theirservices which they provided to their clients. For example: - cost of proving mortgage loan toindividual so it important to know that what cost company have to bear to provide them loan andare the benefit company get through this service. If it is beneficial then manager take decisionaccording to it and develop further strategies which helps the organisation to fulfil their businessobjectives & goals. This costing system required for the organisation to identify their servicecost. Price optimisation system: It is the mathematical program, where manager identify thathow different price range will change according to demand . After this, it will include with theinformations regarding cost and their inventory level which help them to measure their profitthrough their product & service provided to consumers. With the help of this model, manager seta range of price to the consumers and segmented by stimulation and then analyse how theyresponse to price change (Boons and et.al., 2013). In the BRIGHTSTAR company, mangerprepare different policies where they provide mortgage loan and differ them on the basis oftenure, lending rate or amount. They provide various traditional or non-tradition lendingsolution with the wide range of variation in their policies according to customer require. Thismodel required by the manager to achieve their goals & objectives through satisfying eachcustomer with the help of their cost effective financial solutions.2
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