Management Accounting Assignment - Rowlinson knitwear

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Concept of management accounting and their essential requirement in an organization......3
P2: Various types of accounting reporting method......................................................................6
TASK 2............................................................................................................................................7
P3: Various types of costs that are used to calculate net income.................................................7
TASK 3..........................................................................................................................................10
P4: Various types of planning tools that are used to control budget..........................................10
TASK 4..........................................................................................................................................12
P5: Various ways to overcome all financial issues....................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Management accounting is utmost crucial aspects that can assist an organization in order
to plan their operations in more reliable and accurate manner. This aim of managers is to make
continuous planning regarding regulation of financial transaction that is done within an
accounting year. This module used to target future goal and objectives which will be set by
Rowlinson knitwear after making all analysis regarding their overall business functions.
Accounting information is consider more crucial aspects for the investors and other shareholders
that are responsible for making valuable investment planning in their ongoing project (Klychova
and et. al., 2015).
The project report is all about various types accounting systems and reporting that are
needed for making crucial decision making in near future time. While all types of costing method
which are needed for calculating net profit for the company are discussed under this report.
Examine advantage and disadvantage of using planning tools that are needed to control budget
for the company. Lastly, comparison of various management accounting systems in respect to
overcome all financial issues that are arises in an organization is discussed under this report.
TASK 1
P1: Concept of management accounting and their essential requirement in an organization
In the present scenario, it has been determining that companies are producing maximum
number of products within an accounting period of time. During this process, they are incurring
various amount of transactions, whether related with financial or non-financial at the same point
of time. The role of managers is getting vaster as they have to make continuous planning for
recording all those transactions that are incurred in a single day. They are held responsible for
managing and controlling all vital aspects which are helpful for Rowlinson Knitwear company in
order to attain their future aims and objectives in more effective manner. Management
accounting plays a vital role in any business organization in current time and henceforth, they
can make sufficient decision making in context of future growth of the company (Klemstine and
Maher, 2014). It has been found that business in present time need to go with all kind of business
wants through analyzing overall performance information that are goes beyond using
management accounting system and other reporting methods those are valuable for the company
for the longer period of time. The role of management is to provide all necessary services and

standards those are crucial for an organization to increasing overall productivity of the
department. While accounting deal with recording, summering and analyzing all financial
information that are generated within a financial period of time. Mangers uses the provision of
accounting data in respect to make better inform themselves before they make any decision
within their organization. It is looks at those events that are going to be happen in and around a
business while considering the needs of enterprises. By using this, data and predication gets
emerged in proper manner.
Definition: Management accounting is the one of the systematic process of analyzing business
costs and data to formulate internal financial statements, records and account to assist managers
to make decision more effective (JOSHI and et. al., 2011). This will help them to attain their
aims and objectives in more crucial decision in coming future. In other words, this act of making
sense with financial and costing information for management officers can be more reflex to get
healthy return in near future period of time. There are certain important aspects which is needed
to be taken into account. Some of them are discussed underneath:
 For planning: It is an important part of planning which is needed for the future
estimation and budgeting process. It would make relevant contribution to the company’s
cash forecasting and long term financial planning.
 Controlling: On of the major role of financial managers is to gather all vital information
those are needed for planning. The management accounting system assist in setting
standard performance of Rowlinson with the actual outcomes and make analysis all those
variances out of them (Brewer, Sorensen and Stout, 2014).
 Decision making: The function of management accounting is to make valuable decision
in order to get reliable outcomes in coming period of time. These are capable enough to
make use of all resources those are crucial for the betterment of the company in near
future.
Types of management accounting system:
Cost accounting system: It is known as one of the effective system which is design by firm to
estimate the cost of their product for making profitability analysis, stock valuation and control all
those additions cost that are incurred by the company. The proper estimation of cost can be
major aspects for attaining profitable operations. It is mainly used by produrcers to record all