Management Accounting Report - Putney

Added on - 06 Jun 2020

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MANAGEMENT ACCOUNTING
INTRODUCTIONManagement accounting is the process of decision making techniques which will help tobrig mte organization accurate and better management of accounts for their effective investmentmade for the long term ad short term period. It will help to management to analysis the effectivesituation for the future planing related to the finance. Management accounting is the backbone ofevery organisation which is interconnect with each every division of the firm. The report coveredon the Putney is an small and medium size firm in the UK. Putney is an organisation which isdeal in the generic prescription of drugs for pet and earning revenue of across £19.2 millionhaving 57 employees are associated with the firm. Management accounting and its importancewith the various types of management accounting system and Method used while reporting it.The benefits and implication of the accounting systems. As the calculation cost to prepare theincome statement of the cited organisations. Application of management accounting techniquesad financial reporting documentation and its Interpretation of correct applicable of reports on thePutney enterprise. The favourable position and hindrances of arranging instruments utilized forbudgetary control. Utilization of different sort of arranging devicesin producing adequate budgetfor Putney Enterprises. Comparing methods adapted to respond to financial problems.Task 1P1 Management accounting and its essential requirement of different types of managementaccounting system toManagement accounting is an internal report which can be access by the stakeholders ofthe firm and employees which are working in the finance division. It is the type of reportingwhich gives the clear picture to made decision for the log term and short term planning for thebetterment of the organisation. It will help to maximise the cost and increase the profitability ofthe firm with is various measurement.Types of management accountingTheir are different types of management accounting which will help to manage finance ofthe cited firm. The types of management accounting are used by cited firm describe as below:1
Cost accounting system:There are different kind of cost which is obtain by the firm atother level of their operations. It is a frame work which can be used by the Putneyenterprise to assuming the cost of their goods for the analysis of profits, to know theactual value of inventory and control firm cost(Cadez and Guilding, 2012). It difficult toassume the actual cost of goods for effective profitability operation. Each everyorganisation know their profit incurring goods and loss making products. To give bettersolution for such issues cost accounting system will help to estimate the correct. Themost important aspect of these system is to help in estimating the overall valuation of rawmaterial or inventory, product which are work in progress and completed productsinventory which will help for preparing the financial statement of the firm. There are twotype of cost accounting system such as: Job order costing and process costing. Thereforethe job order costing will help to accumulated the manufacturing cost individually foreach job. While the process costing will help to accumulate the manufacture costindividually for each process. As these system is effective for the goods which are used inthe process of production involving various division and cost flows form one division toother.Job Cost system:This type of system will help to minimise the cost of each and everyjob, division or work allocated in various manner. The overall cost of production and theselling of various product are determined individually so that top management bring the2
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