Management Accounting and its Application in AstraZeneca

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Management accounting and essential requirement of different type of management
accounting systems......................................................................................................................1
P2 Explanation of different management accounting reports.....................................................2
TASK 2............................................................................................................................................3
P3 Preparation of financial statements using marginal and absorption costing..........................3
TASK 3............................................................................................................................................7
P4 Explanation of advantages and disadvantages of planning tools along with their use for
budgetary control........................................................................................................................7
TASK 4............................................................................................................................................8
P5 Adaptation of management accounting systems to respond financial issues .......................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
.........................................................................................................................................................9

INTRODUCTION
Management accounting refers as an effective practice used by an organisation to
identifying, measuring, analysing and interpreting financial information to business managers. In
addition, it is a field of accounting that gives financial and economic information for managers as
well as to other internal users. The application of different methods of management accounting
has their own various benefits which are attained by an organisation. This will provides an
opportunity to bring consistency in business operations through ascertainment of coordination in
between the internal department workings. The organisation which is considered for completion
is named as AstraZeneca. This organisation has their operations in manufacturing sector. The
main aim of this report is about determination of benefits associated with the use of management
accounting methods (Abdullahj and et.al, 2015).
The aspects which are covers in the report includes information about different type of
management accounting systems along with their benefits and various management accounting
reports. Also, covers about preparation of income statement by the use of marginal and
absorption costing methods, use of planning tools for budgetary control and adaptation of
management accounting systems to respond financial problems.
MAIN BODY
TASK 1
P1 Management accounting and essential requirement of different type of management
accounting systems
Management Accounting
This includes the use of accounting methods and techniques that help to ascertain
financial information regarding operations of an organisation. This will be further used by the
management of an organisation to build decisions and frame strategies to attain growth
(Management Accounting. 2018).
Management Accounting systems
The different kind of methods persists under this includes cost accounting, inventory
management, price optimisation etc. All these have their own different working from the
organisation perspective. Further, this will provide information which is use by internal
management to made department functioning more profound in overall nature. AstraZeneca is
1