Management Accounting

Management
Accounting
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Management accounting and essential requirements of management accounting system3
P2 Management accounting reporting....................................................................................4
M1 Management accounting benefits and their application within organisation...................5
Evaluation of management accounting system and management reporting system within
organisation............................................................................................................................6
TASK 2............................................................................................................................................6
P3 Cost calculation.................................................................................................................6
M2 Application of techniques for engage management accounting......................................9
D2 Production of financial report for apply and interpret in different range of activities.....9
TASK 3............................................................................................................................................9
P4 Advantages and disadvantages of different types of planning budgetary tools................9
M3 Planning tools and their use...........................................................................................11
TASK 4..........................................................................................................................................12
P5 Compare of two organisation on the basis of adoption of management accounting system
for overcome from different financial problems..................................................................12
M4 Financial problems analyse............................................................................................13
D3) Evaluation of planning tools.........................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Management accounting is the use of different accounting provisions, techniques and tools
which supports an organisation for formulation of effective decisions which improve or
maximise the organisation productivity. With right decisions an organisation enhance their
profitability that is used for formulation of competitive-edge in market. The report is written
from perspective of Snooker England Limited, an organisation that produces goods and
equipment for snooker industry (Charifzadeh and Taschner, 2017). Management accounting
system and management accounting reporting with their integration among organisation process
will be highlight in this report. Formulation of financial report to interpret information from
different range of activities will be included in this report. In the last, evaluation of planning
tools to solve financial problems is undertaken within the report.
TASK 1
P1 Management accounting and essential requirements of management accounting system
Management accounting is explained as a set of accounting system which is used for
completion of work with induce of right decisions. Snooker England Ltd. use management to
achieve their goals and objectives with no issue.
Management accounting system and its essential use are mention as follow:
 Cost accounting system- Cost of products is managed and controlled through use of
right techniques and methods of cost accounting system. This aids an organisation and
also, England snooker Ltd. to accomplish its goals within decided budget.
Essential requirements
Cost accounting system is used for minimise the overall cost by controlling variable
expenses related with business and it results in increase of organisational profits.
With monitoring overall operational cost and manufacturing cost of Snooker Ltd.
management improve their cost controlling system by removing unessential cost factors
(Chiarini and Vagnoni,, 2015).
 Inventory management system- All resources are utilised by manager in an organised
manner through induced of appropriate inventory system. Along with this Snooker Ltd.
organisation ensure to utilise all inventories with a proper system.
Essential requirements
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Inventory management system tracks the use of inventories so it helps organisation for
manage and utilise all inventories in an organised manner.
The inventory management system also control the number of resources and it helps to
manufacture snooker equipment with no problems (Flachère, 2014). Example- lack of
resource stop production system but inventory management systems help to overcome
from this.
 Price optimisation system- The price optimisation system is utilised by organisation for
decided right and actual price of its products and services. Moreover, management of
snooker limited ensure that it profits are margins are maintained properly.
Essential requirements
Price optimisation system is required for decide right price of services and products that
help to cover operation cost and then add appropriate profit margin within business.
Profits are required by the organisation to increase their business size so it is essential for
Snooker ltd. to engage price optimisation system in proper manner.
 Job costing system- This is primarily used by the organisation which performs their
roles in the manufacturing system. Snooker England Ltd. manufactures equipment so it
helps them for managing all jobs in a coordinated manner and also in minimum time-
period (Ghasemi and et. al., 2019).
Essential requirements
Job orders ensure all task are managed and completed in an effective manner and it helps
them for managing jobs in proper manner.
On the other side, another important requirement of job costing is used for satisfying
customers and clients needs in proper manner by improving values in products.
P2 Management accounting reporting
Management account reports are used by organisation for analyse as well as interpret all
information in an appropriate manner. On the other side, Snooker Ltd. interpret all data to
perform their task with no issue and problems with use of various management accounting
reporting system that are mention as follow:
 Budget report- This report is based on the various segments that relates with budget and
it includes production budget, master budget, cash budget, etc. Snooker Ltd. improves
.