Management Accounting - Vectair Holdings

Unit 5 Management
Accounting

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1...................................................................................................................................3
(P1) Discuss management accounting and give the requirements of different types of........4
management accounting systems in an organisation.............................................................4
(P2) Discuss the methods used for management accounting reporting..................................7
P3 Measuring the data set on the basis of various techniques for Vectair Holdings............10
P4 Presenting the merits and demerits of planning tools and budgets.................................13
P5 Comparing the responses of firms to over come financial problems..............................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
APPENDIX....................................................................................................................................20

INTRODUCTION
Management accounting is required in the organisation as through this accounting
information managers are able to take enhanced decisions which helps organisation to increase
overall productivity. The enclosed report deals with Vectair holdings which provide hygienic
products to customers. Management accounting is useful as it provides them with useful
information by which they are able to take better internal decisions for organisation. Moreover,
various types of management accounting is used by company to control its expenses and costs in
the best possible way (Otley and Emmanuel, 2013). It helps them to be efficient in carrying out
the production process in the effectual manner. Apart from this, various budgeting tools are also
used by it so that it may be able to forecast and make effective decisions. Moreover, marginal
and absorption costing is also used by management which makes overall production process in
the most proficient way. As such, management accounting imparts useful information to
managers to take effective decisions in the best possible way.
TASK 1
To: General Manager
Vectair Holdings
From: Management accounting officer
Subject: Require writing a report to General Manager in Vectair Holdings
Introduction:
In accordance with improving the internal efficiency of the organisation to meet the financial
stability there is need to implement various management accounting techniques. The
management accounting will help Vectair Holdings to flourish.

(P1) Discuss management accounting and give the requirements of different types of
management accounting systems in an organisation
Management accounting is the branch of accounting which is quite useful for managers
as it guides them in making better and enhanced decisions which are helpful for organisation.
The Vectair holdings also uses management accounting as it provides them useful insight to take
decisions for it growth and prosperity in the market. It is available for management only as they
take decisions which are based on financial statements provided by accountants. It is quite
important for organisation as internal factors needs to be sorted out so that organisation may be
able to perform well in the market. Management accounting information is not available to
external users of accounting information as it is for managers only to guide them to take better
decisions for the company in the best possible way (Parker, 2012). Management accounting is
not required by law as it is not statutory and as such, Vectair holdings prepare this for regulating
internal factors of organisation in the most proficient manner. By improving internal factors
within organisation, it may be able to fulfil demands of customers and may also satisfy them
with better services. As such, management accounting is useful for organisation as it guides them
to be efficient so that it may flourish in the market by satisfying customers and earn reasonable
profit in the effectual manner (Schaltegger and Zvezdov, 2015).
The requirements of management accounting is wide and is required by organisation to
manage its day to day operations with much ease. The management accounting help organisation
to produce effective operational results which increases its efficiency in the most proficient way.
As such, different types of management accounting are as follows: