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Management Accounting - Evolve Consulting

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Added on  2020-10-22

Management Accounting - Evolve Consulting

   Added on 2020-10-22

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MANAGEMENTACCOUNTING
Management Accounting - Evolve Consulting_1
Table of ContentsINTRODUCTION...........................................................................................................................1PART A...........................................................................................................................................1P1 Explanation of management accounting system and its requirements for differentmanagement accounting systems.................................................................................................1P2 Different methods of management accounting reporting.......................................................3M1 Benefits of management accounting system and their application in the context oforganisation..................................................................................................................................4D1 Evaluation of management accounting system and reporting which are integrated withorganisational process..................................................................................................................5PART B............................................................................................................................................5Annex (A)....................................................................................................................................5Annex (B).....................................................................................................................................6PART A...........................................................................................................................................7P4. Advantages and disadvantages of planning tools for budgetary control...............................7M3. Analyses the use of planning tools and applications for preparation and forecastingbudgets.......................................................................................................................................10PART B..........................................................................................................................................10P5. Organisations are adapting management accounting systems to respond to financialproblems.....................................................................................................................................10M4. Management accounting in response to financial problem can lead organisations tosustainable success ....................................................................................................................13D3.Various planning tools to resolve financial problems..........................................................13CONCLUSION..............................................................................................................................13REFRENCES.................................................................................................................................14
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INTRODUCTIONManagement accounting is also known by managerial accounting. It is a kind of process which is related to the preparing the management reports and accounts that provides financial and non financial information to managers(Ward, 2012 ). This information helps the management team to make future policies and strategies. Basically, it is a kind of accounting method which provides the framework for internal management of the business. To understand about the management accounting in broad sense Evolve consulting engineering company is selected. It has its registered office at London UK. Company deals in providing services related to structural and civil engineering to the individual clients and companies.This project report consists the detailed information about the management accounting meaning, their tools as well as their advantage, disadvantage. Apart from this, project report tells about way in which organisations overcomes from financial issues with the implementation of management accounting tools and techniques.ACTIVITY 1.PART A.P1 Explanation of management accounting system and its requirements for differentmanagement accounting systems.Management accounting is a systematic process of preparing reports which helps inmanagement of internal part of business(Wickramasinghe and Alawattage, 2012). It is animportant tool in the context of management of companies. In addition, this accounting system isbecoming the key part of organisations because it provides needed information timely. Herein, itis important to know that this is not compulsory for the organisations to prepare managementaccounting report, it depends on the need of companies as well as there is no any accounting timeperiod of management accounting. Evolve consulting engineering company is using thisaccounting system to enhance the quality of service providing. Management accounting systemincludes different type of accounting systems which are following:Price optimisation system- It is a kind of system which is related to the determining alevel of price which becomes suitable both for the company and customers. This is veryimportant tool because right price assigning is needed to attract the more customers. Apart from1
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these features, it also provide a framework to analyse the customers reactions on different pricinglevel which helps company in assigning the accurate price of services and products. Applicationof this tool depends on the size and nature of company. Evolve consulting engineering companyimplements this method in determining the price of their offered services. It helps them indeciding the right price of their projects and other services.Inventory management system- This management system is a tool which tracks themovement of goods and services in the entire supply chain(Otley, and Emmanuel, 2013). Itbenefits the companies in checking the small movement of moving parts in the entire operations.Due to this accounting tool managers can ensures about the matching in demand and supply ofraw material. Eventually, inventory management system consists various types likemanufacturing inventory management, warehouse inventory management, retail inventorymanagement system etc. Herein, it is important for the companies to choose right inventorymanagement system because each has different features. Its all depends on the nature ofcompany's business and its network. Evolve consulting engineering company use this system inmanaging the raw material of different projects because they are involved in the dealing withconstruction projects of different clients. Company use warehouse inventory management systemto check the all equipments and raw material of construction.Cost accounting system- Cost accounting system is related to calculate the total cost ofproducts or services. This is very crucial term to analyse that how much cost occurred in anyprocess and this system provides a kind of framework which helps in estimating the entire cost ofdifferent products. In addition, this also helps for the companies in checking which products areprofitable and which ones are not. Basically, there are two types of cost accounting system whichare following:Job costing system- Job costing system is a system which is related to the accumulatinginformation regarding to the cost of different services and products. It is an important method ofmaking analysis about the costing system of a company(Hiebl, 2014). This accounting systemconsists mainly calculation of three kinds of cost information like direct material, direct labourand overhead. In addition, it helps the companies in making estimation about the total costswhich may become basis of price setting as well as for comparing actual cost with estimatedbudget cost. The selected company, Evolve consulting engineering applies this accountingsystem for determining the total cost which occurs in their projects or other engineering services.2
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