Project Assignment on Accounting Systems and Reporting

Added on - 03 Jun 2020

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Management Accounting
Table of ContentsINTRODUCTION.................................................................................................................................3SECTION 1...........................................................................................................................................3P1: Important and types of management accounting systems............................................................3P2: Different types of accounting systems which is used in reporting...............................................5M1: Advantage of using management accounting system.................................................................6D1: Critical evaluation of accounting system reporting.....................................................................7P3: Various costing methods those are helpful in analysing net profit of an organisation.................7M2: Evaluation of accounting techniques..........................................................................................9D2: Analysis of income statements..................................................................................................10SECTION 2.........................................................................................................................................10PART A...............................................................................................................................................10P4: Advantage and disadvantage of using planning tools in budgetary control...............................10M3: Analysis of using planning tools..............................................................................................11D3: Critical evaluation of financial issues.......................................................................................12PART B...............................................................................................................................................12P5: Different financial issues and their effective measure...............................................................12M4: Evaluation of financial problems.............................................................................................13CONCLUSION...................................................................................................................................13REFERENCES....................................................................................................................................14
INTRODUCTIONManagement accounting is an essential aspect of every organisation whetheroperating as small or large scale. They need to make use of perfect accounting systems thatcan assists in managing financial transaction of the company. The primary motive ofmanagers is to make use of role and function of management accounting department. Theshort and long term objectives can only be attain by using appropriate tools and techniquesthose are helpful in control operations of an organisation (Hilton and Platt, 2013).This project assignment is explaining various parts of accounting systems andreporting those are helpful in attainment of future aims of the departments. Various costingmethods which will be useful in achieving net profit of an organisation. Merits and demeritsof using planning tools in budgetary control process are discussed clearly. Different financialissues and effective measures those are helpful in remove this problem which is arises in thedepartment.SECTION 1P1: Important and types of management accounting systemsIn every business organisation, it has been seen that management always tried to usebest alternatives or systems that can provide better results in more quick time. They can alsoplan to control their costs and expenses those are been incurred during the production ofproducts and services. For this purpose, department use to appoint well experience andcapable accounts managers that can help them to control these issues. Managers alwaysmade its best efforts to bring better outcomes by allocating resources in effective manner.Long terms aims and objectives can only be attained if appropriate accounting systems isbeen used by Unicorn grocery ltd for recording of their various transactions. It will be easierto save their extra time as well as manpower (Van der Stede, 2011). The primary motive ofevery business is to make planning for maintaining their performance and growth throughproper utilisation of resources. It would be necessary for them to take maximum advantageavailable possibilities those are been helpful in fulfilment of organisation demands. In orderto generate better results it is important to follow accounting functions in appropriate manner.Such as:
Planning: It is formulating short and long term plan or actions which are done by anorganisation in order to attain a specific objective. A budget can be financial planning whichindicate how company resources can be utilised (Boyns and Edwards, 2013).Organising: It is known as a systematic process of establishing an organisational frameworkand allotting roles and responsibility to an individual those are operating in variousdepartments.Controlling: A plan or system needs to be monitor in well organised manner by collectingcrucial feedbacks and make necessary solution to their issues. This will assists in betterunderstanding of individual roles while doing a task.Decision making: It is known a system of selecting between competing alternatives. It isinherent in every functions of management department (Bennett, Schaltegger and Zvezdov,2013).Importance of management accounting:Forecasting cash flows:The primary significance of accounting is to estimate cashflows and their impacts on the business before any crucial decision is been taken by thecompany. It consist of designing of budgets and trend line graphs which is been used for thepurpose of allocating costs and resources.Understanding performance variances:It is mostly commonly used in makingvaluation among actual and budgeted outcomes. By the help of accounting tools assists indetermining positive and negative aspects of an organisation.Types of accounting systems:Cost accounting system:It is known as one of the appropriate system which is used by thecompany’s in order to control their costs and expenses those are been incurred over theproduction of products. These are directly or indirectly related with the production. Such asdirect labour, material and overhead.Price optimisation system:This particular system is more effectively utilise by managers inorder to determine customer perception regarding price of their products. The outcomes oftheir review would be taken into consideration for further evaluation of company’sperformance.
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