Management accounting.

Management
accounting

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK1.......................................................................................................................................3
P1 Management accounting and its essential requirements of different types of
management accounting systems.......................................................................................3
P2 Methods used for management accounting reporting.......................................................5
TASK2.......................................................................................................................................6
P3 Calculating costs using suitable methods of cost examination to make an income
statement using marginal and absorption costs................................................................6
TASK 3......................................................................................................................................7
TASK3.......................................................................................................................................7
P4 Discuss advantages and disadvantages of different types of planning tools used for
budgetary control...................................................................................................................7
TASK4.......................................................................................................................................8
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................11
Books and journals...............................................................................................................11

INTRODUCTION
Management accounting can be defined as the process which includes financial
information and resources which are provided by manager for decision making. It can also
define internal part of organisation and it makes it different from financial account. It
includes identification measuring analysis interpretation and communication of accounting
information for achievement of organisational goals. In the context of the organisation is
Tesco. It is a largest British retailer witch is operating in UK. Tesco is operating globally
where it has more than 10000 stores in number of nations. Company is also listed in stock
exchange. And its operations are in UK, Asia, Australia and US. This report there will be
analysis on management accounting which includes explanation of management accounting
and its different type of system. Methods in management accounting will also be included in
this report. In the middle of this report there is a practical registration which shows the
technique of cost analysis and income statement. In end of this report there is evaluation of
advantages and disadvantages of different tools for planning and budgetary control
comparison with an organisation adapting managing accounting system to response financial
problems (Aouni, McGillis and Abdulkarim, 2017).
MAIN BODY
TASK1
P1 Management accounting and its essential requirements of different types of management
accounting systems
Management accounting refers to providing information to manager about the
financial accounts of a company which can be used for identifying the performance of
company in a way of its goals and objectives analyzing the performance for decision making
process.it also includes analysis of cost accounts which can help firm in decreasing cost of
firm products and also helps in determination of process according to revenue genrated by
firm (Bierma, Waterstraat and Ostrosky, 2017).
According to Institute of management accounts (IMA) “A management accounting is
a profession that involves partnering in management decision-making devising planning and
performance of management system and providing expertise in financial report and control to
assist management in the formulation and implementation of an organization strategy”.

Tesco also use management accounting India function where they get number of
benefits from this which is stated below:
Increase efficiency: management accounting helps form in increasing efficiency of its
operation this is because everything is done in management accounting with some technical
system which evaluate and compare the performance of organizations activities. This will
help us identify the division and performance and taking decision according to its which will
increase the efficiency of firm and motivate employees toward work.
Maximize profitability: this is also benefit of management accounting to test so that it
can increase it profit this is because management accounting help in budgetary control and
capital budgeting tools which help in decreasing the capital and operating explain the features
of and this will increase the net revenue inform of super profit (Bolt-Lee and Monte Swain,
2016).
Simplification in financial statements: management accounting use number of tools
which help in simplification of final statement of organization. This will also benefit Tesco as
it can use please tools in decision making and providing information to speak holders of firm.
This also help firm in getting advantage in long sun as firm can get knowledge of long run
and can evaluate its performance accordingly.
System use in management accounting
Inventory Management System: It is in system which include combination of
hardware and software which process and procedures that can help in monitoring and identify
products of company which are categorised in company assets, raw material and finished
product. Inventory management system consists of identifying inventory item and its
associate information which can help in identification of product details. Talk to include
hardware tools for reading the labels and barcodes which are prescribe on a product
identification of IPS qualification. Company also used in inventory management software
which provide a central database system for organisation to identify it’s a stock and with the
demand of product.
Price Optimisation System: Price of atomisation is a mathematical tool which is used
in management accounting by a company to determine the response of customers two
different price of its products and services with different channels it help company to
determine the prices that the company can use to meet its objective and maximizing its profit