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Management Accounting | Managerial Accounting | Assignment

   

Added on  2021-02-17

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Management Accounting
Management Accounting | Managerial Accounting | Assignment_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1A. Management accounting and requirements of different management accounting system.....1B. Various accounting management reports used by Ovation system and importance of suchreports..........................................................................................................................................2C. Benefits of types of inventory management and job costing system.....................................3D. Integrated features of management accounting system and management accounting reportsin organization.............................................................................................................................4TASK 2............................................................................................................................................4A1. Absorption and marginal costing methods...........................................................................4A2. Preparation of income statements........................................................................................6C. Significance of Prepared Financial Statements....................................................................10D. Interpretation of Financial Reports for Ovation Systems.....................................................11TASK 3..........................................................................................................................................12A. Advantages and disadvantages of various planning tools for budgetary controlled............12B. Application of planning tools for analysis, forecasting and preparation..............................13C. Comparing methods of management accounting systems with regard to financial problems...................................................................................................................................................14D. Analysis of management accounting techniques for financial problems.............................14E. Evaluation of management accounting techniques for financial problems..........................15CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................17
Management Accounting | Managerial Accounting | Assignment_2
INTRODUCTIONManagement accounting is analysis of business costs and operations that help inpreparation of internal financial reports, accounts, records which aid managers in makingdecisions. It is an important responsibility and its financial data is required in order to determinevarious information which can be beneficial for management of an organisation. This report willgive an understanding of management accounting systems and their different methods that arebeen used. It will evaluate its benefits and application in Ovation systems, an SME which has 23employees and is located in UK. Calculations of costs with the help of appropriate cost analysiswill be done and determine income statements using marginal and absorption costs. It will alsoexplain uses of planning tools, its application while preparing forecasting budgets and theiradvantages and disadvantages. Comparison of methods that can solve financial problems andhow they respond to them will be done, which will lead organisation in sustaining its growthsuccessfully. TASK 1A. Management accounting and requirements of different management accounting systemManagement accounting is a tool used by managers to manage financial position of theenterprise and provide accurate report of financial and economic status of a company.Management refers to advising company for the best use of provision of financial data. In simplewords it is also defined as identifying company's cost and operations and preparing financialreport (Quinn and et.al., 2018). Management is analysing, identifying, planning and managingactivities according to needs of the business.Accounting management has a selective nature of selecting the limited information out ofwide range of data.It emphasis on future planning and growth of business.It only provides large amount of data but no decision.Wide variety of options available to solve a particular problem. Reports focuses on preparing a financial information for external parties, such asstockholders, public regulators etc. Requirements of Management accounting system are:1
Management Accounting | Managerial Accounting | Assignment_3
Inventory management: Managers of Ovation system requires lot of information regarding themanagement of accounting. Inventory is also a kind of management which needs to be managedproperly to get the correct financial reports of the business. Inventory management refers tokeeping the records of production and sale of goods. Stock management identifies theavailability of raw material and finished product in company (Otley, 2015). It deals with demandand supply of products. Stock of the Ovation system required to be properly managed. Inventorymanagement consists of keeping information about sale of products and services and stock whichis still available in storage.Job costing system: It is termed as assigning different cost structure to different products. Thissystem focuses on the cost of individual product. In small companies like Ovation system, costof product and their selling rate plays an important role in generating the profits of the company.So this costing system ultimately affects the activities which are involved in managing thefinancial reports of the business entity. This system is concerned with manufacturing cost of theproduct. Different types of products vary in their costs and this variation in costs effects jobcosting system of the organization.B. Various accounting management reports used by Ovation system and importance of suchreportsBusiness entity uses different types of reports for the company. These reports provideinformation regarding cost of product, performance of an employee and budget stated for theproduction. The managers of Ovation system require Accounting management reports becausethis provides them information’s about various kinds of financial activities (Melnyk and et.al.,2014). Such reports can be concluded from various departments of an organization. This ishelpful in decision making of the management. Different reports provides comprehensive viewabout the management of financial status in business. Following such reports are describedbelow: Cost report: This report gives a view about the total cost incurred of a product. This includescost of raw material, labour expanses and extra costs in manufacturing the product. Cost reportgives an extracted orientation of all this information in respect with a manufacturing ofcommodity. This report is used to ascertain the actual cost of the commodity. This report tellsabout the overhead expanses of a product. 2
Management Accounting | Managerial Accounting | Assignment_4

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