Various Management Accounting Reporting Methods
Added on 2020-07-23
16 Pages4713 Words69 Views
ManagementAccounting
Table of ContentsFROM: MANAGEMENT ACCOUNTING OFFICER..................................................................1TO,...................................................................................................................................................1GENERAL MANAGER..................................................................................................................1UNICORN GROCERY...................................................................................................................1SUB: MANAGEMENT ACCOUNTING SYSTEM .....................................................................1INTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Management accounting and essential requirements of its different types..........................1P2. Methods of various management accounting reporting........................................................4M1: Advantages of management accounting .............................................................................5D1: Critical evaluate management reporting system..................................................................6TASK 2............................................................................................................................................6P3: Calculations of net profits by using methods of costing methods........................................6M2: Methods of accounting........................................................................................................8D2: Analysis of income statements.............................................................................................8TASK 3............................................................................................................................................8P4: Merit and demerits of using planning tools..........................................................................8M3: Analysis of planning tools.................................................................................................10D3: Tools used to overcome financial issues............................................................................11TASK 4..........................................................................................................................................11P5: Comparison with other company's in order to solve financial issues.................................11M4: Analysis of financial problems..........................................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
FROM: MANAGEMENT ACCOUNTING OFFICERTO,GENERAL MANAGERUNICORN GROCERYSUB: MANAGEMENT ACCOUNTING SYSTEM INTRODUCTIONA field of accounting that provides financial and non-financial information for managersand other users, who are playing important role in internal development of an organisation.Information regarding financial transaction is very useful for the future planning. It assists themanagement in development of various policies and use of techniques in its daily businessoperations (Ahmad and Kamilah, 2013). Accounting information is considered as the primeobjective for management that will be useful for making future decisions in order to attain longterm objectives. The managers of an organisation used to record various transactions which arecollected from respective sources. The purpose of accounting data is to increase efficiency and profitability of company.The present report consists of various tasks that provide necessary information about differentaccounting systems and their essential requirements in an organisation. Various costing methodsare also highlighted here to determine the profitability of company. Different planning tools inbudgetary control process are discussed in this report as well. The manner in which variousissues are resolved by carrying out comparison among two companies will also be discussed inbelow presented report.TASK 1P1. Management accounting and essential requirements of its different typesAccounting is collecting, summarising, recording and analysing various financial data inorder to get positive results in the future. While management of accounting is the planning,organising and providing right directions to attain short and long term objectives. It providessystematic guidelines to managers to implement accurate techniques and system so that betterresults can be attained in the future. It is also useful for the preparation of report variance1
analysis by the ways to compare differences in between actual performance and standard. It isrelated with primary part of accounting system that helps them to make effective decision so thatprofitability can be higher (Becker and et. al, 2011). This project report consists of variousaccounting techniques that are related with effective planning, organising and controlling offinancial transactions. It is considered as one of the important tools that is projected to solve dayto day problems in an organisation. These are the issues faced by top management while makingeffective decision in terms of making maximum profit for company. In the current scenario, accounting is an effective source of utilising resources so thatprofitability can be enhanced. It can be affected by various factors such as internal and externalfactors. Basically, it is related with financial data that is used by the managers during planningand managing various activities used during the year. Unicorn Grocery requires essentialaccounting services that can help them to make their business more effective. The target ofmanagers of Unicorn Grocery is to modify the future performance of organisation. A managerwould need to collect necessary information about the sales trends, inventory position andevaluation of salesperson (Management Accounting, 2016). All these are managed by usingperfect accounting systems. Management accounting is associated with implementing accountingdata for the purpose of taking crucial decisions regarding development of an organisation. It willbe helpful in attaining individual as well as organisational goals and objectives. The significanceof using management accounting is stated as follows:It is responsible for providing accounting information by which top management can takecritical decision in the favour of company.Another analysis is related with cause and effect analysis that is used to determine theloss occurred in organisation. In case of profit, all the related factors such as expenditure,current assets and share capital are determined. Use to taking valuable decision regarding performance of Unicorn grocery during pastand current year time.There are various accounting systems which are needed to be followed by the managersin formulation of plan and strategies (Bodie, 2013). Some of them are:Cost accounting system: It is considered as an effective design used by company inorder to identify the total costs incurred over production of products and services. These are donewith respect to profit analysis, cost control and inventory management. In relation to attain2
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