Management Accounting Techniques and Financial Reporting for Iceland Manufacturing

5-Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1) Discuss management accounting & also elaborate various types of systems used for
management accounting..............................................................................................................3
P2) Methods of management accounting reporting.....................................................................5
M1) Elaborate advantages of management accounting system along with their application in
context of organization................................................................................................................6
TASK 2............................................................................................................................................7
P3) Determine cost by applying suitable techniques of cost analysis and also prepare income
statement by absorption & marginal cost....................................................................................7
M2) Apply different techniques of management accounting & also formulate suitable financial
documents..................................................................................................................................10
PART 2..........................................................................................................................................10
TASK 3..........................................................................................................................................10
P4) Discuss benefits & drawbacks of various planning tools which are used for the purpose of
budgetary control.......................................................................................................................10
M3) Analyze various planning tools along with their application in preparation of budgets. . .12
TASK 4..........................................................................................................................................12
P5) Devise comparison in the way in which management accounting system is adopted for
dealing with different financial issues.......................................................................................12
M4) Evaluate how in response of financial problems, management accounting can lead
company towards sustainable success.......................................................................................14
CONCLUSION..............................................................................................................................15
REFERNCES.................................................................................................................................16

INTRODUCTION
Management accounting refers to a process wherein financial data & information is
analyzed, interpreted as well as communicated to relevant parties so that they can take necessary
business decisions in timely manner. It deals with numeric information & data with an aim to
prepare appropriate financial statements which further guide financial managers to take suitable
decisions for embarking growth within company. In addition to this, management accounting is
concern with presenting data & information in such a manner by which uncertainties can predict
in an efficient manner so that efficient & productive decisions can be made for success of
business entity (Caglio, 2018). Besides this, management accounting also assist business manager
in making business forecast so that uncertainties can eliminated & efficient decisions can be made
for future growth & success. In current report, Iceland manufacturing is considered that is a well
known manufacturing organization of UK and deals in frozen products. The report covers various
management accounting techniques which are applied by company for preparation of financial
documents. Different reporting methods of financial management accounting along with
necessary techniques of cost analysis have also included in the report. Further, benefits &
drawbacks of budgetary planning, comparison between the ways of adopting financial accounting
system have also covered in the following report.
TASK 1
P1) Discuss management accounting & also elaborate various types of systems used for
management accounting
Management accounting:
It is widely used approach which is concern with analysis, interpretation of financial
documents so that necessary information can imparted to managers for taking suitable business
related decisions (Wells, 2018). Here, data & information is present through financial documents
by which managers are able to analyze current financial position of organization which will
further assist in terms of eliminating uncertainties & making the most of business opportunities.
With this, liquidity within firm is also managed in order to ensure adequate amount of funds for