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Adaptation of Management Accounting System to Solve Financier

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Added on  2020-10-23

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Different methods used for management accounting reporting3 TASK 25 P3 Calculating cost with Absorption and marginal cost.5 Total £100(over absorbed) 6 TASK 39 P4. In order to furnish financial condition it is necessary for the financial manager of Austin Fraser to present financial information in effective way so that proper results can be calculated.

Adaptation of Management Accounting System to Solve Financier

   Added on 2020-10-23

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MANAGEMENTACCOUNTING
Adaptation of Management Accounting System to Solve Financier_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management Accounting and its different requirement........................................................1P2. Different methods used for management accounting reporting............................................3TASK 2 ...........................................................................................................................................5P3 Calculating cost with Absorption and marginal cost.............................................................5Total £100(over absorbed)...............................................................................................................6TASK 3............................................................................................................................................9P4. Advantages and disadvantages of different types of planning tools for budgetary control..9TASK 4............................................................................................................................................9P5. Comparison between organisations that adapt management accounting system to solvefinancial problems. .....................................................................................................................9CONCLUSION................................................................................................................................9REFERENCES................................................................................................................................9
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From: Management AccountantTo: Finance DirectorSubject: Details related to management accounting for making an effective decision inorganization.INTRODUCTIONManagement accounting is an essential process that helps in formulation of importantfinancial information that is carried out in particular business structure. The management accountplays a essential role in this regard as they have to perform all these operations in effective andefficient manner in order to accomplish final goals and objectives of the company. Everybusiness organisation have to operate in dynamic environment which keeps on changing withtime and thus companies have to keep in pace with these changes. Management system have toinculcate modern and advanced technology system which will results in carrying out the workprocess in adequate way. The company selected in this report is Austin Fraser, an internationalrecruitment consultancy that imparts that services related digital technology, automation, lifesciences and many other. The report highlights the various types of management accounting aswell as benefits of it which is enjoyed by the business organisation. It also focuses on usage ofmarginal and absorption costing. TASK 1P1 Management Accounting and its different requirement.Management accounting is the dynamic system that is adopted for maintaining importantfinancial statements like balance sheet, P&L account and other important components. Thesecomponents help in finding out the profits and loss for particular financial year hence, propersteps could be taken so that management accounting process could be performed. Thesepreparation of financial statements helps in presenting information about financial position of thecompany in accurate manner (Albelda, 2011). There are several tools that is introduced inbusiness organisation in order to plan the whole system in prospective way. In order to furnishfinancial condition it is necessary for the financial manager of Austin Fraser to present financialinformation in effective way so that proper results can be calculated. These statements deliversthe information regarding sales volume, cash, inventory level, stock and many other activities.1
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On the other hand, these information are materialistic in nature that contain some aims andobjectives to be achieved hence are known as financial information. It uses can be determined onthree key areas of business which are discussed below: 'Performance management: management accounting is directly linked with managingperformance of individual that are working in single business organisation. On the otherhand, it assist in enhancing skills and knowledge of every employees so that they couldcontribute to best of their abilities and capacity (Vakalfotis, Ballantine and Wall, 2013). Strategic management: Strategies are formulated for achieving the future tasks of thecompany so that ultimate goals which were framed get accomplished in effective andefficient manner. Therefore, Austin Fraser will require financial and non financialinformation to come to its conclusion and form proper strategies for the company.It isessential to manage strategies in strategic manner so that it outcomes could be determined(Arroyo, 2012). Risk management: Risks are considered as part and parcel of every businessorganisation and it is of different nature and types. There are proper system that isframed to face all these types of risks in proper manner so that effective results can beaccomplished. For example, management have to maintain adequate inventory level intheir system so that proper resources could maintained at significant level in order tomeet demand and supply process. There some risks have to be faced and some can beignored therefore, it is necessary to maintain risk level and evaluate its impacts accordingto it and take steps to face it. Different types of management accounting system that is prepared in Austin Fraserorganisation and are as follows: Cost accounting process: This system is focused upon controlling cost of the companyin order to ascertain the profits and valuation of inventory that take place in theorganisation system. It is very much useful to carry out this procedure in effective way.The financial manger introduce effective costing system so that overall cost could beascertained (Suomala, Lyly-Yrjänäinen and Lukka, 2014). Inventory accounting system: In this accounting, inventory management is performedat significant level. Austin Fraser have to carry out this process so that proper inventorysystem could be maintained. This company have introduced inventory control software2
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