Management Accounting and Methods of Management Accounting Systems

Management
Accounting
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Describe management accounting & different methods of management accounting systems
......................................................................................................................................................3
P2. Different methods that is used for administration accounting reporting...............................5
M1. Benefits/ Advantages of management accounting systems..................................................6
D1. Assessment of accounting systems & management accounting reporting...........................7
TASK 2............................................................................................................................................7
P3. Calculate costs through appropriate techniques of cost analysis...........................................7
M2. Application of diverse tools of management accounting & producing appropriate
financial reporting documents......................................................................................................9
D2. Financial reports assists in increasing understanding regarding operational activities........9
TASK 3..........................................................................................................................................10
P4. Explain benefits & drawback of different types of planning tools......................................10
M3. Adopt planning tools..........................................................................................................11
TASK 4..........................................................................................................................................12
P5.Compare how company adopts management accounting systems to offer response related
to financial problems..................................................................................................................12
Comparison between Engineers India Limited &other manufacturing company.....................13
M4. Management accounting solve issues related to finance that can results in sustainable
success........................................................................................................................................13
D3. Planning techniques to solve financial problems................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
INTRODUCTION
Management accounting signifies process connected to financial credentials which
considers different procedure connected to research and management of information that is

related to finance that helps organisation to make appropriate plan for future period of time. They
also make policy that help in proper control over overall activity of organisation. In assistance of
this, the utility connected to accounting help administration team for increment in company
during the period of time. It is not significant for company to accept accounting related to
company as its need is based on goal of company. To manage administration accounting, the
chosen company named as Engineers India Limited. It is considered as a manufacturing sector
and provides different kind of services to its user. This assignment offer discussion in respect of
administration connected to system in addition with its importance, need connected to reporting
process adopted for proper method related to cost analysis which assist in maintaining income
statement by adopting amalgamation and subsidiary cost. In assistance of this, they also focus on
enhancing involvement related to planning tools in addition with its benefit or drawback in using
management accounting that assists in offering solution to financial problem which help in
providing direction to achieve sustainability (Alaeddin, 2019).
TASK 1
P1. Describe management accounting & various methods of management accounting systems
Management accounting
It is considered as a strategy which determines accepting, analysing and also record
financial and non-financial data & information that assists in taking proper decision for
achieving aim & objective of company. There are various types of factor which help in designing
and also they emphasize on presenting appropriate financial statement. In assistance of this, it is
used by administration team of selected company while increasing short and long determination
of time to organise familiar process of organisation without any type of hurdle or issues
(Denison, 2018).
Management accounting system
This concept connected to management accounting is considered as an activity and also it
involve larger scope which assists in reaching to different division of company. The description
connected to various type of accounting system in context of selected company which is given
below:
Inventory administration system determines collection of goods that is adopted at
different places to produce specific good for aim of marketing and administration of inventory
during the period of time. The appropriate records are handled by using this type of method
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signifies date and also time of overall amount connected to catalogue of company. In addition to
this, the primary purpose is to fulfilling needs and requirements of customers during the period
of time. In reference of selected company, the administration team use various method of
administration in reference of tracking inventory and gathering significant information which is
linked with prevailing catalogue which aids assistance in proper determination for need of
inventory in future time period. The appropriate need of inventory administration system is
handling overall record connected to inventory that assists in removing various type of issue
connected to overstock as well as under stock in context of manufacturing (Fuzi, 2019).
LIFO determines stock which is come last that is used in procedure related to production
of goods and services.
FIFO in reference of inventory management system, the goods received and used by
company for first time in relation to production process.
Average cost this method related to inventory management is used for bringing inventory
for fundamental cost as per average price.
As per overall system connected to inventory management, the management team of
company can adopt FIFO tool as it is significant for manufacturing Pharmaceutical item which
provide satisfaction by offering superior goods or products to them (Kamordzhanova, 2019).
Price Optimisation system is considered as a numerical assessment by which
dissimilarity related to instruction is planned at different extent of cost that is considered
as a price optimisation system. In assistance of this, the tool is adopted by management team to
manage price connected to input origin. In selected company, the administration team can
analyse response of customer in context of different process of product that is manufactured by
them. It assists in setting price of goods that is manufactured by company by which result is
achieved in future period of time. It is needed to assign product & price in an appropriate manner
that assists in accomplishing outcome in future time period.
Cost accounting system this aids assistance in anticipation connected to different product
of company and determine factor that is related with productivity, analysing stock and
controlling costs. It is important for management to assess appropriate price that is connected
with goods and proper opinion in context of procedure that is related to commercial purpose. In
assistance of this, in reference of selected company, the administration team can implement this
type of method to assess final inventory, value of whole stock of goods in assistance with