Management Accounting and Reporting

Management
Accounting

Contents
TASK 1..........................................................................................................................................................4
P1: Explanation of management accounting and essential requirements of its systems...........................4
P2: Various methods used for management accounting reporting...........................................................7
Critical evaluation of management accounting systems and reporting...................................................8
TASK 2..........................................................................................................................................................9
P3: Calculation of costs by using appropriate techniques.......................................................................9
Application of management accounting techniques.............................................................................13
Producing of financial reports...............................................................................................................13
TASK 3........................................................................................................................................................14
P4: Advantages and disadvantages of different kind of planning tools of budgetary control.................14
Use of different planning tools and their application for preparing and forecasting the budget.............16
TASK 4........................................................................................................................................................16
P5: Comparison of organisation to solve the financial problem with the help of management accounting
system....................................................................................................................................................16
CONCLUSION.........................................................................................................................................18
REFERENCES..........................................................................................................................................19

INTRODUCTION
Management accounting is defined as an act of observing and analysing final accounts of
an organization with the motive of making suitable policies and decisions which brings
beneficial results at the end of financial year (Agrawal, 2018). For this, management must have
better coordination with financial manager so as to collect relevant and accurate data about
financial position of company and make proper decisions accordingly. It aids an organization to
achieve long term objectives which includes minimizing business cost and increasing
profitability. The present report is undertaking the case study of Cream Ltd, which is engaged in
providing wide range of products that includes ice-creams, doughnuts, waffles etc. The
assignment report explains the essential requirements of various systems of management
accounting and reporting, application of techniques to resolve financial issues and preparing of
an effective budget as well as comparison of two rivals on the basis of techniques used to resolve
their particular financial problem.
TASK 1
P1: Explanation of management accounting and essential requirements of its systems
Management accounting is integral part of accounting that enables management to frame
suitable business policies and strategies so as to increase the possibilities of achieving
organizational goals and objectives. Here are the explanation of various system of management
accounting along with their essential requirements:
Cost accounting-
It is the process of identifying the total cost incurred in manufacturing and selling
products to the end customers. It is also called as the method of minimizing cost. Creams Ltd.
Can utilize this system to identify the future cost and make strategies in advance to minimize
them (Baiman, 2014).
Advantages-