Management Accounting of Zylla Company - Report

Management
Accounting

Table of Contents
FROM: MANAGEMENT ACCOUNTING OFFICER..................................................................1
TO,...................................................................................................................................................1
GENERAL MANAGER..................................................................................................................1
ZYLLA COMPANY.......................................................................................................................1
SUB: MANAGEMENT ACCOUNTING SYSTEM .....................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Different types of management accounting and their essential use.................................1
P2: Different methods for management accounting reporting...............................................3
M1: Benefits of management accounting:..............................................................................5
D1: Critical analysis of reporting system ..............................................................................6
TASK 2............................................................................................................................................6
P3: Various costing methods .................................................................................................6
M2: Evaluation of accounting techniques..............................................................................8
D2: Critical evaluation of profit and loss statements............................................................8
TASK 3............................................................................................................................................8
P4: Advantages and disadvantage of using planning tools....................................................8
M3:Evaluation of planning tools..........................................................................................10
D3:Critical analysis of financial problem.............................................................................10
TASK 4..........................................................................................................................................11
P5: Various measures to resolve financial problems............................................................11
M4:Evaluation of financial issues........................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

FROM: MANAGEMENT ACCOUNTING OFFICER
TO,
GENERAL MANAGER
ZYLLA COMPANY
SUB: MANAGEMENT ACCOUNTING SYSTEM
INTRODUCTION
Management plays an important role in managing business operations of an organisation
in an effective and efficient manner so as to achieve desired goals and objectives. Management is
required in a business organisation whether the size of an organisation is small or large. There
are different tools and techniques through which manager perform various activities such as
planning, organising, motivating and controlling in order to formulate better decision. In this
project report, the firm 'Zylla' selected in order to examine various accounting systems applied
along with their essential use in organisation. Various costing methods and different aspects of
accounting reporting which is helpful in analysing profitability of business will also be discussed
in this report (Arroyo, 2012). The benefits and limitations of using planning tools that are linked
with budgetary control are also covered in this project report. The questions related to financial
problems along with corrective measures are also discussed here. The Overall project is based on
management accounting system which is helpful in achieving the future growth of Zylla.
TASK 1
P1: Different types of management accounting and their essential use
Meaning: As various activities are performed within business organisation and in order
to ensure whether such activities are done in an effective and efficient manner, management is
necessarily required which helps an organisation to achieve desired growth and profitability. To
manage the accounting data and information account manager is held responsible through which
he can organise and control accounting activities effectively.
Definition: Management accounting refers to preparation of financing reports and
accounts which include reliable, accurate and statistical data which is need to be required by the
manager to formulate effective decisions that directly help an organisation in achieving short as
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well as long term objectives. Therefore in order to attain good financial position and perform
business operations smoothly the manager of Zylla needs to evaluate accounting and financial
information as well as data relating to entries, ledgers and budgets (Boyns, and Edwards, 2013).
Also they are needed to implement corrective measures if any deviations occur. It is known as
the primary aspects of accounting system through which manager gets to know about company's
total sales volume, accounts receivable and payables etc. Effective management of financial
operations also helps in attracting investors to invest in an organisation to get maximum return.
Misrepresentation or misconduct also affect the profitability of business organisation
therefore by using effective accounting system the managers can easily find out deviations as
early as possible and accordingly take corrective measures to resolve all such related problems so
that it would not affect the productivity. As Zylla is large in scale therefore it becomes difficult
for the manager to manage financial records in an effective and efficient manner thus it is
required to first analyse the financial problems carefully and then need to implement corrective
measures. Company's performance is also affecting when the management uses outdated system
in order to record financial transactions due to which chances of errors in accounting data are too
high Therefore managers need to update themselves with the advanced technology in order to
achieve competitive advantages as well (Herzig and et. al. 2012). So Zylla needed to use updated
accounting systems which helps an organisation to record and analyse the transaction performed
on regular basis. The future growth and profitability of company depends on the results which
are collected from using accounting systems.
Importance of management accounting:l It helps in achieving the team's objectives: Arranging factors of production, assembling
and organising the limited resources through using appropriate accounting system by
manager of Zylla in an effective and efficient manner helps in achieving the set group
goals.l Optimum utilisation of resources: An organisation has limited resources in the form of
physical and human as well as it is important for the manager to utilise them in such an
appropriate manner which helps in bringing maximum output at minimum cost.
Types of accounting system:
Price optimisation system: It refers to maintaining the balance between profit and value
of product so as to achieve profitability as well as customer satisfaction. It is important for
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