Management Accounting: Methods, Techniques, and Planning Tools

Management accounting

Executive summary
Accounting management mainly focus on the function of the internal cost for any of the
organisational process, which helps in the business, individual or an organisation. This
processes helps in taking a proper decision which is connected to the investment, operation,
and as well as productions in the competitive market. All the organisation require accounting
management to know the ability of the budget of the organisation as well as the cost of the
performance and then allocating some of the funds as per the investment, sales as well as
productions. In order to track specific selected ratios on daily basis , the organisation has the
capability to maintain a fairly accurate perception of the efficiency and effectiveness of its
operations. Even though the industry related to the hospitality is exciting and dynamic , it
faces competitive challenges such as, reliance on discretionary income, low profitability,
capital intensive, labor intensive and fluctuating sales volume. Greencore assures that it has
the ability to face the challenges so that it can develop and improve the value.

Table of content
Introduction.................................................................................................................................. 4
Task 1:......................................................................................................................................... 4
P1. Explanation of management accounting and need of different types of management
accounting systems..................................................................................................................... 4
P2. Explanation of different methods used for management accounting reporting that can be
applied for the chosen scenario..................................................................................................7
Task 2:......................................................................................................................................... 8
P3. Explanation the difference between the two management accounting techniques..............12
Task 3........................................................................................................................................ 14
P4. Explain the advantages and disadvantages of different types of planning tools that can
be used for budgetary control for the chosen scenario with the help of the chosen
organisation............................................................................................................................... 14
Advantage of using of management of tools:.............................................................................15
P5. Comparing ways in which organizations could use management accounting to respond
to financial problems.................................................................................................................. 15
Conclusion:................................................................................................................................ 16
References................................................................................................................................ 18

Introduction
Accounting management mainly focuses on the function of the internal cost for any of the
organisational process, which helps in the business, individual or an organisation. This
processes helps in taking a proper decision which is connected to the investment, operation,
and as well as productions in the competitive market. All the organisation require accounting
management to know the ability of the budget of the organisation as well as the cost of the
performance and then allocating some of the funds as per the investment, sales as well as
productions . The major role of the accountant of the management is very crucial for the
profit of the organisation. His main responsibilities and role are so big that even a single
mistake or any complaint against him related to any business plan can put the organisation
future in risk.
Task 1:
P1. Explanation of management accounting and need of different types of management
accounting systems
There are various different methods of the accounting management:
Analysis of the financial statements: This analysis of the financial statements further helps
in the company in order to understand the all over income as well as different types of
accounting. In the house of the organisation, this supports the company and helps them to
take decision and maker various types of forecasting and assessment related to the upcoming
opportunities and risk. In the words of Baldvinsdottir (2013), the analysis of financial
systems involves the aspects of the income statement cash flow statement and other different
accounts of the organizations.
Standard costing: This act therefore involves deciding and setting up about the standard cost
that is proper in various aspects of the activities that has been taken up by Harvey and
Palmer. According to Banerjee (2014), this also involves the actual conversion of the cost
that taken by the organisation with the standard cost that was pre determined. The appropriate
actions are there to solve them out of the current deviations.
Budgetary control: Harvey and Palmer apply budgetary control to handle various types of
expenses, which done by the organizations. According to Bodie (2013), The different types
of activities are controlled and monitored, in order to resolve with any kind of the wastage of