Management Accounting Systems & Techniques

Management Accounting Systems &
Techniques

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Definition of management accounting and explanation of various system of this technique 1
P2 About managing accounting report........................................................................................1
M1 Benefits of management accounting system.........................................................................1
D1 Importance of alignment of management accounting reporting with system........................2
TASK 2........................................................................................................................................2
P3 Marginal costing and absorption costing statement...............................................................2
M2 Range of management accounting techniques......................................................................2
D2 Financial report which define management accounting techniques......................................2
TASK 3........................................................................................................................................2
P4 Planning tools and its advantage as well as disadvantage......................................................2
M3 Brief explanation of management accounting planning tools and its relevance in budgeting
forecasting....................................................................................................................................3
TASK 4........................................................................................................................................3
Explanation of financial problem and techniques use for solve this issue..................................3
M4 Use of management accounting tool for responding financial issue.....................................3
D3 Evaluation of how planning tools for accounting respond appropriately to solving
financial problems to lead organisations to sustainable success.................................................3
CONCLUSION................................................................................................................................3
REFRENCES...................................................................................................................................3

INTRODUCTION
Management Accounting this term is used to provide accounting information in systematic
way which help in taken future business decision. To understand this concept XYZ limited has
been taken it is a manufacturing industry. This report has been contain specific information
regarding relevance of various Management Accounting system and their use of former dating of
accounting reports it is a country in usefulness of marginal as well as absorption costing method
to calculate the value of profit and cost this report also define use of planning tool for taking
business decisions as well as various methods which help in overcoming financial problem.
TASK 1
P1 Definition of management accounting and explanation of various system of this technique
Management accounting: Accounting it is essential part of every business organisation.
On the basis of using techniques in system of accounting business organisation able to record
their transaction related with business activities Management Accounting is a part of accounting
this term has been combination of two words one is management and the other one is accounting
the term management define planning organising running controlling and monitoring business
activities and on the other hand accounting is the procedure of recording collecting and represent
entering financial transaction for relevant stakeholders (Fiondella, Macchioni, Maffei, and
Spanò, 2016).
Management Accounting is the procedure which help in represent information in
systematically wave which help in attending business objective within given time period this is
useful for take decisions there will be various branches of accounting financial branch is also
important.
Difference between financial and management accounting
Financial accounting Management accounting
Financial accounting is related with recording
transaction which only affected by cash related
transaction.
Management Accounting on the other side
record cash as well as other than cash
transactions for example depreciation and
amortization and adjustment of intangible
assets.
Main purpose of financial accounting is Information relevant regarding with
1