Management Accounting : Assignment
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Added on 2020-07-22
Management Accounting : Assignment
Added on 2020-07-22
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Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Concept of management accounting and their essential requirements.................................1P2: Different types of methods use for accounting reporting.....................................................3M1: Benefits of using management accounting system..............................................................4D1: Critical analysis of management accounting reporting........................................................4TASK 2............................................................................................................................................4P3: Calculation of cost per units by using costing method.........................................................4M2: Apply use of outcomes calculated by using net profitability..............................................6D2: Interprets data for a range of business activities carried by Ryanair...................................6TASK 3............................................................................................................................................7P4: Advantage and disadvantage of using planning tools in budgetary control.........................7M3: Analysis of planning tools...................................................................................................8D3: Critical evaluation of financial problems.............................................................................9TASK 4............................................................................................................................................9P5: Comparison of financial problem those are arise in Ryanair with Lufthansa airline...........9M4: Critical evaluation of financial problems..........................................................................10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONIn present scenario, it has been seen that plenty of accounting related aspects are neededto be taken into consideration. This can be meeting by using effective management accountingsystem. It will be essential for every department of an organization to make use of systems inorder to record various transactions that are being done in an accounting period of time. Thisproject report is providing crucial information regarding performance of Ryan air’s businessduring the period of time. In order to analyse their internal and external stability various types ofaccounting system and reporting are taken into account. By the help of costing methods net profitof an organisation can be determine in more effective manner. Understanding of merits anddemerits of planning tools use in budgetary control. Discussion about certain financial issues thatare present in cited company and valuable measure to resolve them are mentioned under thisreport (Hilton and Platt, 2013). TASK 1P1: Concept of management accounting and their essential requirementsAccording to mentioned case study about Ryanair which responsible for providingeffective services to passengers in airline facilities in Ireland and UK. It has been found that thiscompany is operating as full services conventional airline which is having two different kinds ofseating and three types of aircraft. There are certain kinds of issues which are found in anorganisation which is related with the internal management. They are not able record theirtransaction or passengers detail or other crucial information that are done during the time. Inorder to resolve all these issues, they are decided to hire accountant consultant so that certainspecific tools or techniques can be identified to analyse financial transaction of Ryanair.Management accounting is simply said to be management of accounting statements that are doneby the company during their operational process (Ward, 2012). The primary objectives of using this system are to attain individual as well as organisationaims at the same point of time. Company always tried to increase efficiency and profitability byusing appropriate management accounting techniques. It is essential to make analysis of variousstatements before transferring it to prepare valuable report for an organisation. This will behelpful to make use data for evaluation current performance as well as producing more reliableoutcome for the company with using all resources that are being kept by the company. In every1
business enterprise, whether related with retail or services sector, they need to have moreeffective system that can assist an organisation to manage their day to day expenses of a firm.Management always look for all aspects which are necessary for increase productivity assystematic record of internal department in “Ryanair Company”. It is vital for the managers tomake use of appropriate tools and techniques which are use for the purpose of effective decisionmaking in coming time (Burritt, Schaltegger and Zvezdov, 2011). Management is said to be held responsible for effective planning, organising,communicating and providing right direct to the company to increase maintain their goodwill inmore effective manner. While accounting is one of the main aspect which deal with recording offinancial transactions that are being done by the company during the time. In order to managerthem, they require certain types of accounting systems so that more valuable results can beattain. Some of them are discuss underneath: Cost accounting system: It happens to be essential aspects by which a Ryanair companycan more easily be able to locate and examine their actual costs that are incur over the productionof goods and service during the time. These types of costs make huge impacts on overallproduction either directly or indirectly. There are certain types of costs that are needed to betaken into consideration are normal, standard and actual costs.Inventory management system: All crucial detail about operating costs among lowestof any European scheduled passengers in airline are mentioned under this system. This will leadto determine all detail about total raw material and resource which are needed to make aircraftsare mention in this particular system. By using these systems, managers can able to analyse exactamong to stock they have to manage overall resources of an organisation (Soin and Collier,2013).Price optimisation system: As per this accounting system, various types of prices thoseare set by the company for the passengers to book tickets for the purpose of travelling in onedestination to another. This will help to determine perception of customers about various prices,whether they are able to pay for their services would be prime concern for the company. By thehelp of this system they are able to analysis necessary data about various customers.Calculating job costing: In order to track total costs a company is investing for thepurpose of producing valuable outcomes for the company are recorded into this particular2
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