Importance of Management Accounting Assignment - Marine Construction & Engineering company

MANAGEMENT
ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY.......................................................................................................................................1
Part (A).........................................................................................................................................1
Part (B).........................................................................................................................................5
ANNEX (A).................................................................................................................................5
Q2.................................................................................................................................................5
ANNEX (B) ................................................................................................................................6
Q1.................................................................................................................................................6
ACTIVITY 2....................................................................................................................................9
PART (A).....................................................................................................................................9
ANNEX C..................................................................................................................................10
PART (B)...................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
Accounting is mathematical calculation of the different accounts that is used to define the
profit in an organisation through running business activities. Management is the coordination of
activities that help to achieve goals which is defined by the organisation. It includes planning,
organising, staffing and controlling the business activities in order to run a business speedily
(Abdelmoneim Mohamed and Jones, 2014). To understand the importance of management
accounting Bristol Marine Construction & Engineering company has been chosen that provides
number of services containing structural, civil and mechanical engineering. It was established in
1994 to provide the construction services. This report discusses about management account and
its system, planning tools and how it helps to control in budgetary control and management
accounting system that helps to solve the financial problems by maintaining the accounts and
accept the management techniques.
ACTIVITY
Part (A)
Management accounting system and its essential requirement
Management accounting is the internal work of any organisation that plays a vital role in
each enterprise. It used to get important information which relates to business activities and
make it profitable. The manager of the company prepares different types of report that gives full
information and give ideas what need to do in order to run a business effectively. Basically,
management accounting helps to analysing, monitoring and understanding the financial data
which is used to take most appropriate decision in business organisation. Moreover, accounting
system does not require any specific audit to get the profits from industry. The Marine
Construction & Engineering company uses accounting system to manage properly that helps to
complete the civil and construction projects (Armitage, Webb and Glynn, 2016). The difference
between management accounting and financial accounting is defined below-
Financial Accounting Management Accounting
This accounts are prepared with a specific
format that is used to compare with other
organisation.
No specific format is used for management
accounting system. It prepares with the help of
past information.