Management Accounting System and Reporting

MANAGEMENT
ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explaining the meaning of management accounting system and its essential requirement.
................................................................................................................................................3
P2 Different methods of management accounting reporting..................................................4
M1 Evaluating the benefits of the management accounting systems and its application in the
organisation............................................................................................................................5
D1 Critical evaluation of integration management accounting system and reporting in
organizational processes.........................................................................................................6
TASK 2............................................................................................................................................6
P3 Calculations as per absorption and marginal costing techniques......................................6
TASK 3............................................................................................................................................9
P4 Presenting the advantages and disadvantages of the different types of planning tools in
budgetary control....................................................................................................................9
M3 Analysis of the use of different planning tools and their application in preparing and
forecasting of budgets...........................................................................................................10
TASK 4..........................................................................................................................................11
P5 Comparison of how organisations are adapting the management accounting systems to
respond to financial problems by KEF.................................................................................11
M4 Presenting an explanation that dealing with financial problem through management
accounting system leads KEF to sustainable growth...........................................................13
P5 Evaluation of the planning tools to be used to respond to financial problem.................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Management accounting is an analytical tool that is used by the business organization as
an application of the knowledge and skill in the preparation of accounting information in a
specific manner to assist the management of the business in formulating policies and controlling
and panning the operations of the business. The scope of management accounting is vast and its
assist the business in the decision-making process through use of financial as well as statistical
information. In the present report the management of KEF is presented with the meanings and
use of the various types of management accounting system and their pros and cons. With this
management accounting reporting are also explained For the new product launched calculations
are presented on the basis of absorption and marginal costing techniques. KEF is presented with
application of planning tools to respond to the financial problems and can lead to substantial
development.
TASK 1
P1 Explaining the meaning of management accounting system and its essential requirement.
Management accounting:
As per the definition given by the cost and management accountants of London,
management accounting means the application of the professional knowledge and skill for
preparation of the accounting information in such way which assist the business management in
taking business decision and make policies, plan and control the operations of the business. This
includes the concepts and the methods which are essential for effective planning for selecting the
best alternative business action and controlling through evaluating and interpreting the business
performance (What Is a Management Accounting System, 2019). The management accounting
system and reports are integral part of the management accounting and it looks in to the events
while happens in and around the organisation along with considering the requirements of the
business. The data are elevated and gives estimated figures over which decisions can be based.
The different types of management accounting systems are:
Inventory management systems:
The inventory management system can be defined as the system for managing the
current system. This system looks at maintaining the optimal level of inventory with the business
and evaluate the requirement of stocks for procurement of the required production of the units to
reach the optimal and budgeted level of sales. In manages an effective control over the inventory