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Management Accounting Qbic Hotel - Doc

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Added on  2020-09-17

Management Accounting Qbic Hotel - Doc

   Added on 2020-09-17

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Management Accounting
Management Accounting Qbic Hotel - Doc_1
TABLE OF CONTENTSINTRODUCTION......................................................................................................................1P1 Explaining the requirements of MA system.....................................................................1P2 Giving information to the manager about the significance and need of differentmanagerial reports..................................................................................................................4P3 Determining cost and profit through undertaking absorption & marginal costing system................................................................................................................................................5P4 Presenting planning tools that can be used by Qbic hotel................................................8P5 Comparing ways in which different MA tools assist in responding financial problems12CONCLUSION........................................................................................................................13REFERENCES.........................................................................................................................14
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INTRODUCTIONIn the present era, along with the financial accounting, need of MA is also recognizedby the business unit. Moreover, now each business unit has some specific motives such ascost control, enhancement of customer base & brand image and maximization of productivityas well as profitability. Thus, company can meet all such objectives only when it employs thetools and techniques of management accounting (MA). As such field of accounting containsbudgeting, variance analysis, costing techniques etc which in turn exerts control on cost to agreat extent. Thus, firm should focus on undertaking the same for gaining competitive edgeover others. The present report is based on Qbic which offer stay or accommodation facilityto the customers. In this, report will provide deeper insight about the reasons due to whichneed of MA systems are identified. Further, it also entails the manner through which firm canget information about cost and profit through the means of different costing system. It alsopresents the way in which MA tools helps in financial planning and responding monetaryproblems.P1 Explaining the requirements of MA system ToManagement Team Qbic hotelDate: 1st December 2017Subject: System of management accounting Management accounting: Significance and need of management accounting: MA tools and techniques are highlysignificant which in turn assists business in meeting goals to a great extent. Benefits whichare offered by MA tools enumerated below:MA too help company in forecasting future and aid in decision making aspect By using management accounting tools firm can analyze the rate of return In addition to this, hotel unit helps in understanding performance variances and takingcorrective actions for improvementsFirm can control cost by doing make or buy analysis through the means of MA Thus, by considering all the above aspects it can be said that management accountingtechniques hep in monitoring the performance of each department. Hence, by taking effectivedecisions on time firm can control cost and maximize profit margin. Cost accounting: It implies for the process which lays high level of emphasis on recording,classifying, analyzing, summarizing, allocating and evaluating alternative course of action.The main goal behind undertaking the system of cost accounting is to advise appropriate
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course of action to management. Hence, by undertaking such accounting system hotel unitcan improve cost efficiency and capability (Saladrigues and Tena, 2017). Along with this,such accounting system helps in determining the cost of products, processes, projects etc andaid in decision making, planning as well as control.Advantages:Helps in assessing the situation of profit or lossEliminates waste and thereby helps in controlling cost Such accounting system assists firm in taking decision whether to produce in-houseor buy from outside.Disadvantages:Such accounting system sometimes leads the problem of under and over absorption ofoverhead It demands for heavy expenditure because for the installation of cost accountingsystem maintenance of many costing records is highly required. Job costing: Such management accounting system is highly used by the businessorganization or industries where production is measured in terms of completed job. Throughundertaking such costing method concerned business units can track the expenditureassociated with the creation of unique product. Advantages:It assists in setting prices of each jobBy undertaking this manager of the hotel unit can perform trend analysis and applybudgetary control system In this, by using past records management can estimate the cost of job moreeffectuallyDisadvantages:Lack of standardization and highly expensive in nature In the inflationary period, comparison of job is not possibleInventory or stock management: Tools and techniques of management accounting help inmaintaining enough inventory within the firm. As EOQ, JIT etc provides deeper insight to thefirm about the stock which they need to manage for offering effective services to thecustomers. Economic order quantity method entails unit which needs to be ordered andmanaged within the firm for ensuring smooth functioning. Thus, by using such method firmcan maintain enough inventories and would become able to meet the expectation and demandof customers on time.Advantages:Such technique provides high level of assistance in controlling cost pertaining toholding and ordering etc.By using inventory management system hotel unit can ensure smooth functioning ofoperations and become able to provide customers with suitable products or serviceson time.Disadvantages:In some business unit, demand is seasonal so it is not possible for the manager tomake appropriate estimation of inventory. Requires skilled and trend personnel for stock evaluation Price optimization: Through undertaking price optimization system firm can evaluate theviews and responses of customers in the best possible way. Moreover, different customersreact in a varied manner on different prices. Some peoples assume and compare quality ofproducts with the price level. On the other side, some customers are looking for the productsor services that offer best quality at affordable price level. In this way, by using such systemfirm can get the views of customers and enables to set optimal price that contributes in the
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