Management Accounting: Tools, Reports, and Techniques

Management accounting

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.................................................................................................................................................3
P2.................................................................................................................................................4
M1................................................................................................................................................4
D1.................................................................................................................................................5
TASK 2............................................................................................................................................5
P3.................................................................................................................................................5
M2................................................................................................................................................9
D2.................................................................................................................................................9
TASK 3............................................................................................................................................9
P4.................................................................................................................................................9
M3..............................................................................................................................................13
TASK 4..........................................................................................................................................13
P5...............................................................................................................................................13
M4..............................................................................................................................................15
D3. .............................................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Management accounting (MA) is defined as the particular process which includes the
certain process such as identifying, analysing, processing, measuring the financial data and
information in order to make the futuristic decision by the management of the business
organisation. It manages the financial performance of the by setting up new objects and plan in
the business. For the better understanding of this particular topic company continental clothing
Ltd. is selected that is engaged in fabrication of the clothing at the various location of UK. The
reports content the various topic such as management accounting system (MAS), reporting,
different problem established in the business, various budgeting techniques and control that used
by business as planning tools (Schaltegger, Burritt, and Petersen, 2017).
TASK 1.
P1
Management accounting includes the different kind of accounting tools that devising the
plan and object of the business in respect to providing the expertise in the financial statement and
reporting and assist the manager regarding formulation the business strategies and objectives and
implement it into business for earn more profit in future. Here, the different kind of management
accounting are mentioned as under:
Stock management system: It is also called inventory method that related with the
handle the overall cost of the product at processing unit of business. It manages the inflow and
outflow of the stock at warehouses. The company continental clothing Ltd is using this method
to ensure the stock at the warehouse.
Cost accounting system: This is the system that is defined as the overall cost that incur
at the different level of the manufacturing the goods. It consists the the total cost from stage of
raw material to finished goods. Continental clothing uses this method in the business to know the
overall cost at the time of manufacture.
Price optimisation system (POS)- In the method, business sets the price to its products
at the certain level. It is totally based on the cost of production and the review of the customers.
In respect to selected company, management are applying particular system to set the amount to
its products.

Job costing system- This is the method that is defined as the transfer the cost to its
particular products and job. It measure the cost incurred from direct material, labour and
overhead. Company is using this tool to make effective decision in the business regarding
allocation of the cost to its projects and job.
P2
These reports are the basic statement of the business that represent the monetary item in
the statement to its management of the company. The main object behind it to provides all the
detail regarding the business to make the internal planning and policy. The different kind of
reports are as follows:
Budget reports: This is the reports that is defined as the statements of the future income
and expenditure at the different level of manufacturing. This report play a major role in analysing
the standard data with actual performance. Continental clothing company is using this tool of
MAR in the business to identify the cost at various level of the production (Santini, 2013).
Account receivable ageing report- In this report, it show the total amount due with the
debtors. This reports is only for those business which deal in the credit to its customers. The
management creates this reports to know the balance amount with the customers. In the company
continental clothing business uses this reports to know the credit business transaction with
customer.
Cost accounting report- This is the report that is accompanying the information
regarding the overall cost of the manufacturing the goods and product. It covers the various cost
of production such as direct material, certain overhead like fix and variable cost. The company,
continental clothing Ltd is making this particular reports in the business to measure the
incurring in their operation.
Performance report- This reports is all about the measuring the specified business
activities and operation in concern with the business performance and employee contribution
towards the business organisation. Company is using this report to make analysation in the
business regards the whole performance of the business.
M1
Every management system have its own role and function in the business that play a
major role in handling the business activities. Here, some of the benefit are as under :