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Management Accounting Assignment MA

   

Added on  2020-06-06

17 Pages4644 Words24 Views
MANAGEMENTACCOUNTING

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Analysing the management accounting system with determining various terms ofaccounting...............................................................................................................................1P2 Determining the financial information..............................................................................3TASK 2............................................................................................................................................6P3 Measuring the financial information of September month with the disclosure of incomestatement.................................................................................................................................6TASK 3............................................................................................................................................7P4. Use of budgets in organisation.........................................................................................1TASK 4............................................................................................................................................4P5 Presenting the management accounting approaches to overcome with financial problems inorganisation............................................................................................................................4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................7

INTRODUCTIONManagement accounting is the most beneficial tool in terms of enhancing the internalenvironment of the organisation. It will be fruitful for the professionals to analyse the internalperformance on the basis of various reports and financial statements which in turn helps inpresenting the most adequate solutions to the business operations. In the present report there willbe discussion over management accounting tools and techniques and their importance in terms ofenhancing the operations of Tech (UK) Limited retail stores. The report is consisted of variousreporting techniques, budgetary control methods and planning tools that will used byprofessionals to improve internal performance of the organisation. There will be variousaccounting approaches that will be helpful to overcome with the financial problems in Tech UKLimited. Further, there has been presentation of income statements on the basis of two costingtechniques such as marginal and absorption on which the net profit will be analysed and themanagers will be facilitated with the adequate method to be implicate in the operations.TASK 1P1 Analysing the management accounting system with determining various terms of accountingManagement accounting: This technique is consisted with various components offinance, management and accounting. It will be beneficial for big financial decisions, monitoringthe business risk as well as planning the appropriate business strategies. These informationhelpful for the managerial and accounting professionals in terms of allocating the costs in Tech(UK) Limited retail stores as well as making the adequate changes in the operations (What ismanagement accounting?, 2018). The use of such technique will help in improving or provokingthe internal financial health of the entity as well as enhances the efficiency to have favourablerevenue gathering in the future.Difference between management accounting and financial accountingBasisManagement accountingFinancial accountingMotive and objectivesThe data set will be used inplanning and decision makingThere will be communicationof financial positionUsersInternal stakeholders such asmanagers, board of director,auditing committee and riskThe information are being usedby external stakeholders suchas investors, shareholders,1

management committee.government, banks etc.Regulations/ GuidelinesNo regulations everyone canprepare and present the dataset.Standard regulations andguideline facilitated by GAAP,IFRS, IASB etc.FocusInformation gathered fromeach department in theorganisation as to have betterdecisions making for the futureoperations.If focuses over the past recordsand transactions held for thebusiness operations.Cost accounting system:In accordance with the cost accounting system it can be said that there will be fruitfulgains as if Tech (UK) Limited retail stores have better cost monitoring techniques. These will bebeneficial for the professionals in terms of having the most adequate and appropriate cost stage-management systems which will be helpful in revenue gathering (Cost Accounting Systems,2013). To attain the goals of entity and have the profitable gains for long period of than there isneed to have effective decisions that will help them in satisfactory level of utilisation of fundsand resources.Actual costing: This is necessary that the managerial professionals and the accountantsin Tech (UK) Limited retail stores must make the record of all the fixed assets on their costprices (Wachira, 2017). Therefore, it can be said that it follows the actual costs and the historicalvalue of such items. This will be beneficial in terms of analysing the costs of the products,services which will be required in cost allocation.Normal: These are the costs which are mainly used for the production of the units.However, these are the costs which normally incurred while performing the operational tasks ofthe organisations such as direct labour, direct material, overhead costs etc. Tech (UK) Limitedretail stores have to make payments of such costs and expenses in the accounts which will behelpful for thee activities in the industry (Wei and Xima, 2017).Standard costing: These are the difference or variance between the costs which areactually incurred in Tech (UK) Limited retail stores operations with the estimated costs.2

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