Management Accounting Essay

Added on - 21 Jul 2020

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MANAGEMENT ACCOUNTINGID:College Name:Lecturer Name:Unit Handler Name:Date of Submission:
Executive SummaryThe management accounting is an important part and concept of an organisation. Anorganisation needs to manage their financial resources in order to achieve success in the market.It has been found that there are some organisations that are unable to understand the significanceof using accounting tools. Such organisations have encountered loss in their businesses.Management accounting helps an organisation to analyse the profit reports and financial reportsfor gaining sustainability in their business. In order to analyse business performance,management accountant is required to analyse the data that are obtained from financial reportsfor making effective decision. This study is going to focus on the tools and techniques that canbe adopted by a firm to analyse accounts and finances for improving business.2
Table of contentsIntroduction......................................................................................................................................4Task 1...............................................................................................................................................4P1 Explaining different types of accounting.................................................................................4P2 Methods for managing accounting reports...............................................................................6Task 2...............................................................................................................................................7Task 3...............................................................................................................................................8P4 Advantages and disadvantages of budgetary control tools.......................................................8Task 4...........................................................................................................................................10P5 Comparing ways in which organisation are adopting accounting systems............................10Conclusion.....................................................................................................................................12Reference List................................................................................................................................133
IntroductionManagement accounting can be defined as the methods by which an organisation tries tomaintain their financial as well as accounting reports in the form of statistics. An organisation isable to understand the total capital that is required by them in a financial year. It assists amanager to make decision regarding a company's finances. Management accounting generallypublishes financial report on a weekly basis and this report is only meant for internalstakeholders. This study sheds light on the various types of accounting systems that are used byan organisation like Sollatek for managing their finances. A number of accounting tools areavailable like cost analysis, absorption costing and profit analysis. There is an attempt to evaluatetool related to budgetary controls and the control measure ensures success of a business. Thisstudy is going to discuss about the methods or ways with the help of which an organisation isable to adopt adequate technique for managing accounts.L.O.1P1 Explaining different types of accountingManagement accounting helps an organisation to represent financial reports based onplanning and analysis of financial data. Managers are able to take financial decision based uponthis data. As opined byAlsharariet al.(2015, p.500),accounting management is a reflection offinancial health of an organisation. The accounting systems include computerised and manualways of record keeping. It is the responsibility of the accounting manager to supervise theprocess offinancial statement of a company.Figure 1: Types of Accounting4
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