Management Accounting

Management
Accounting

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Section A................................................................................................................................1
Section B................................................................................................................................3
TASK 2............................................................................................................................................5
TASK 3............................................................................................................................................7
Part A......................................................................................................................................7
TASK 4..........................................................................................................................................10
Part B....................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Management accounting is regarded as the application of professional skills as well as
knowledge into formulation of accounting information in such a manner so that this assists firm's
manager to develop policies as well as plan and control their operations (Management
Accounting – Meaning, Advantages & Functions, 2020). As per the given scenario, this report is
based on Excite Entertainment LTD. It operates into leisure as well as entertainment industry and
its vital practices is promotion of festivals and concerts in all over United Kingdom. The topics
which are going to described in this report are distinguish among financial and management
accounting, inventory management system, job costing system, advantage of many kinds
managerial accounting report, integration of managerial accounting system and report into firm's
operational procedures. Moreover, preparation of financial report using costing techniques and
comparison among three planning tools are explained. Apart from this, comparison among ways
the two entities applied management accounting system for preventing from financial issues are
also discussed in this report.
MAIN BODY
TASK 1.
Section A
a) Differences between Management Accounting and Financial Accounting.
Management accounting is differing from financial accounting as this rendered data to
person into entities. On other side financial accounting is basically for outside peoples like
shareholders (Biemans, 2018). So, differences among two are described underneath:
Basis Management accounting Financial accounting
Purpose The management accounting is
utilised for internal purpose.
Financial accounting is utilised
for external report mainly.
Regulation This is not regulated or governed
through any legislation.
This has been represented
according to the standards.
Contents This consists both financial as well as
non financial information.
This consists only financial
information.
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b) Cost accounting systems
This regarded as a system that is mostly applied into entities for an intent of ascertaining
exact cost that is incurred during implementing the operative practices. Therefore, manager of
Excite Entertainment LTD are applying this for an intent of identifying reasons of whole
expenditures that are taking place because of their operations. This is vital for their business as
this may direct its managers to ascertain the aspects that are outcomes into more cost. In is of
two kinds such as direct as well as standard costing. Both of them are explained below: Direct costing: Whole expenditures that are directly associated to practices of enterprises
are considered as the part of direct costing (Brunswicker and Vanhaverbeke, 2015). So,
this type of cost is incurring into Excite Entertainment LTD during the promotion of
festival as well as concerts. The example of this costing are direct labour cost,
commission etc.
 Standard costing: This is considered as the kind of cost accounting system that is utilised
into various firms like Excite Entertainment LTD for collecting information related to
factors that outcomes into deviation among actual as well as standard cost. The example
of this costing as companies estimate cost of different operations under it.
c) Inventory Management Systems
This is regarded as a managerial accounting system which is usages through business
concern for managing whole products that are utilised aspects to perform practices in efficacious
way. Therefore, the manager of Excite Entertainment LTD utilised for maintaining the whole
records so that they can able to know that where is usages through staff for rendering leisure to
customers. In this accounting system different techniques are used in order to do better
management of stock such as LIFO, FIFO and many more. Under Last in first out method, stock
that comes in last is used first for production. While in the first in first out method, stock that
comes first is used for production.
d) Job Costing Systems
It is regarded as managerial accounting system that is mostly applied into large entities
for segregating overall expenditure that outcomes from several jobs (Carayannis, Sindakis and
Walter, 2015). Therefore, manager of Excite Entertainment LTD apply job costing system to
track the record of each and every jobs that are done based upon particular consumers. This is
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