Various types of accounting methods
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Added on 2020-06-05
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Management Accounting 2 INTRODUCTION 1 TASK 11 P1: Meaning of management accounting and their needs 1 P2: Various types of reporting methods 4 (b): Importance of collected information 5 M1: Benefits of using management accounting system 5 D1: Critical evaluation of accounting reporting method5 TASK 26 P3: Various types of costing method used to calculate total net profit 6 M2: Various types of accounting techniques9 D2: Analysis of data collected or reconciliation9 TASK 39 P4: Merits and demerits of
Various types of accounting methods
Added on 2020-06-05
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Management Accounting
Table of ContentsTable of Contents.............................................................................................................................2INTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Meaning of management accounting and their needs......................................................1P2: Various types of reporting methods.................................................................................4(b): Importance of collected information..............................................................................5M1: Benefits of using management accounting system.........................................................5D1: Critical evaluation of accounting reporting method........................................................5TASK 2............................................................................................................................................6P3: Various types of costing method used to calculate total net profit..................................6M2: Various types of accounting techniques.........................................................................9D2: Analysis of data collected or reconciliation....................................................................9TASK 3............................................................................................................................................9P4: Merits and demerits of various types of budget...............................................................9M3: Analysis of different planning tools..............................................................................11D3: Critical evaluation of financial issues............................................................................11TASK 4..........................................................................................................................................12P5: Balance scorecard method..............................................................................................12M4: Evaluating financial issues............................................................................................13CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONManagement accounting is an essential aspect for an organisation. By the help of thiscompany would able to manage and control their financial transaction in more effective manner.The main aims of Tech UK are to attain maximum gain through using resources in more properways. This project report is providing crucial information about various accounting and reportingsystems those are used for the purpose of recording transactions into their respective set format.Moreover, it will be discussing various costing methods that are used for calculating net profitfor the company. With the use of merits and demerits of various budgets managers of Tech UKwould be able to control their costs and future expenses. Apart for this, all those financial issuesthose are present in an organisation can be analyse by accountant and resolve them by usingbalance scorecard method in an effective manner (Amoako, 2013).TASK 1P1: Meaning of management accounting and their needsIn every business enterprises, management tried to manage their day to day financialtransactions through using appropriate accounting system. These are helpful for an organisationto increase the profitability for an organisation. The primary motive of every business is to makeuse of vital accounting systems that are always assists Tech UK Ltd to regulate their operationsin more effective manner (Klemstine and Maher, 2014). Management accounting is a systematicrecording of all financial transactions that are incurred in an organisation during a specific periodof time. by the help of a well organise accounting systems which is the only key to perform theiroperations at internal level. It is necessary to make evaluation of data through using appropriatetools and accounting standards. It will assist them to increase overall aims and objectives at thesame point of time. The manager’s main aims are to enhance profitability as well as efficiencyby proper allocation of organisation resources. It has been analyse that financial accounting andmanagement accounting are having certain kind of similarities. Those are being discussedunderneath:Management accounting Financial accountingAccording to this accounting system which isaid the internal and external department ofTech UK to provide all necessary informationWhile in case of this, all the policies and rulesthat are being made by organisation are usedfor the purpose of preparing specific financial1
to accountant so that overall aims andobjectives can be attain in reliable manner.statements during the time.All the data which is being provided byowners are always assists them to futureplanning and growth for the company.The main objectives of using this accountingare to provide essential information aboutfinancial position of Tech UK to theirinvestors.Every data and information are taken intoaccount those are related with financial aswell as non-financial at similar stage.Only financial data is taken into considerationto make accurate report for the company.This accounting only provides practicaloverview and information about the companyso that future decision making can be done.Only theoretical aspects are analyse throughusing reliable accounting rule and regulationfor the company.Some examples are: Cash flow management,sales tactics or budgeting are taken intoaccount.Examples are: Balances sheet, profit and lossstatements and cash flow statements.It often consists of companies total availablecash and recent sales earning and many more.Physical money and account receivableearned but not yet collected.Various types of accounting system:Cost accounting system: According to this accounting method which assists managersto control and operate their internal operations in effective manner. All the costs that are used forthe production of product and services are taken into account at the same point of time. There arecertain types of costing which are needed to be taken into consideration such as:Normal costing: It is said to be an appropriate costing methods which a company normalincurred at the time of production of products with the same resources.Actual costing: It is known as those costs that are actually incurred while production ofone unit by Tech UK Ltd in their daily course of business.Standard costing: As per this costing this charged as per the set standard by the ownerof the company. This seems to be used for the purpose of making comparison of actualresults to that with actual one.Examples of cost accounting systems is, it is the costing that is more appropriate for aspecific activities of an organisation, a niche furniture producers or formulation of high cost ofair surveillances system. Some other are auto mechanic repair shop rebuilding of any machine.2
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