Management Accounting in UK Assignment Solved

Management Accounting

INTRODUCTION
In today's world, every company either big or small needs a systematic management
approaches and theories which help them to perform work in most profitable manner improving
the total productivity. The process related with the examining, managing, controlling, reporting
of essential financial data into accurate accounts that assess in day to operation to increase entire
profit of company (Burritt and Tingey-Holyoak, 2012). This gathering of information is help full
for internal supervisor to take valuable decision for increasing productivity and performance of
company. In this report, Excite Entertainment is selected that is located in UK. Company use to
deal in leisure and entertainment industry and have major activities to promote upcoming festival
at different location in entire United Kingdom.
The following reports, holds a detail description of various types of essential accounting
system and their benefits for company, several kind of management accounting reports are
discussed in this report. By applying various kind of costing techniques manufacturing cost per
unit, net profit during an accounting year. In addition, different kind of planning tool and
management accounting tool are discussed with their advantages and disadvantage also support
to resolve the problems of company.
TASK 1
P1 Several types of management accounting system and their requirements.
The concept of financial accounting is defined as the processes that is related with
determining, recording, grouping, summarising and reporting of useful data that is collected for
various financial dealing within an organisation. There is a little difference between the concept
of management and financial accounting such as, management accounting is defined as a
ongoing development procedure that assess in planning, developing, evaluating and managing all
financial and non financial information of companies during an accounting period. Whereas on
the other side, the financial accounting is special branch of accounting that is related with
maintaining a valid and authentic record of entire financial transaction by following specific
guidelines. The collected information is presented in financial reports or statements that is cash
flow, balance sheet and income statements (Cazier and et.al., 2015). As Excite entertainment Ltd
use to provide different types of valuable services and good to large number of customer thus
they apply different kind of useful management accounting system that are discussed below:

Cost accounting systems: This is one of the most valuable system as it asses to figure
out the total cost of production or expenses incurred by companies on developing and providing
a service. It usually involve in estimating the cost of their products for profitability, cost control
and inventory valuation. This system is essential to carry out in the Excite Company as it assists
to formulate strategic decisions for the growth of the business in the global market. This plays a
significant role in the firm as it improve organization's cost efficiency and overall profitability.
Due to which desired objectives are achieved on due time. Cost accounting is conducted in the
business working as it investigates possible inefficiencies and design tactics for improvement to
control cost. There are are two types of costing that are used in Excite entertainment Ltd that are
defined below:
Direct costing: This costing method is useful for company as it support to identify the
cost of services offered to customer with potential cost of labour, material and overhead that are
based on pre-determine production rate.
Standard Costing: This practice is related with substituting an additional costs that are
involved in production process or developing ways of promoting events.
Inventory Management Systems: This is adopted or carried out in the administration as
it aid to track inventory levels, deliveries, sales and orders (Hoque, Covaleski, Gooneratne,
2013). It is basically used in manufacturing industry to make bill of material, create a work order
and other production related documents. It plays a significant role in the Excite Company as it
assist to maintain right balance of stock so that emerging needs of the customers can be fulfilled.
Inventory is the most important part of the ongoing business operations in the cut throat
competitive world. Inventory management system helps business associates to eliminate
overstocking and tock obsolescence so that smooth functioning of the business can be carried out
easily in the market place.
FIFO: This is the best appropriate methods which is related with distribution of goods
that are brought first.
LIFO: It is an assets management and valuation techniques that assumes to produce or
acquire previous stock are need to be used first.
Job Costing Systems: It is a system adopted for collecting and assigning manufacturing
costs of an single person unit of output. This is widely used in the organization when
distinguished goods are produced and has significant cost. It aid the business associates to