Management Accounting and Reporting: Essential Requirements, Methods, and Cost Analysis

Management
accounting

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain management accounting and give the essential requirements of different types of
management accounting systems................................................................................................3
P2 Explain different methods used for management accounting reporting................................5
TASK 2............................................................................................................................................7
P3 Calculate costs using appropriate techniques of cost analysis to prepare an income
statement using marginal and absorption costs...........................................................................7
TASK 3............................................................................................................................................8
P4 Explain the advantages and disadvantages of different types of planning tools used for
budgetary control........................................................................................................................8
TASK 4 .........................................................................................................................................12
P5 Compare how organizations are adapting management accounting systems to respond to
financial problems.....................................................................................................................12
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15
Books and Journals:..................................................................................................................15

INTRODUCTION
Management accounting is a system of structured form of managing business operations
and its financial funding. It considers the facts and figures of accounts an organisation prepare to
make easy with monetary flow into organisational activities. Management of accounting is an
integrated part of management system through which a manager clearly formulate strategies
and evaluate decision making process to records and make reports of accounting standards. It
does include various tasks such as preparation of budgets, income statement, audits , journals
and books of accounts, these documents are necessary to prepare for organisation run in a long
run and have good revenue optimisation. An accounting method is a broad concept that
accumulate organisational functions and cost into an easier way. These functions are
incorporated under several governmental regulations and legal provision that bound the business
to prepare reports and data to ident8ify actual positions of the company. According to the legal
standards of CMA institution of cost management accounting, London considers an appropriate
structure of handling data and money policies within the organisation (Aaltola, and Manninen,
2021).
This report is covering the facts and figures of management accounting by
acknowledging operations of Prime furniture, a well recognised UK based firm established in
2021, as a newly appointed on the post of junior accountant, it is the duty to prepare management
reporting which shows all the essential criteria in order to teach new interns to make them well
versed with accounting principle, standards, techniques by showing clear differentiation of
different accounting methods as well as significance of reporting (Aaltola, and Manninen, 2021).
TASK 1
P1 Explain management accounting and give the essential requirements of different types of
management accounting systems.
Management accounting is the standards and approach for making accounts of company
and get clear position of company into wider terms. It includes various activities that an
accountant manager performs by thoroughly understand internal environment of business.
Basically, through managing accounts and making report gives a mangers pool of resources
towards taking effective decision for firm's durability. It consist different methods as per the
scope of business and requirement to take considerable accounting technique.