Management Accounting Assignment | Merlin financial consultancy

Added on - 21 Feb 2021

  • 18

    Pages

  • 3956

    Words

  • 4

    Views

  • 0

    Downloads

Trusted by +2 million users,
assist thousands of students everyday
Showing pages 1 to 4 of 18 pages
ManagementAccounting
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting and essential requirements of its systems.................................1P2 Various methods used for management accounting reporting..........................................3M1 Determine the benefits of management accounting system.............................................4D1 Integrated organisational process with in management accounting system and accountingreports.....................................................................................................................................5TASK 2............................................................................................................................................5P3 Calculation of cost using different costing techniques......................................................5M2 Apply a range of management accounting techniques....................................................9D2 Produce financial reports to accurately apply and interpret data......................................9TASK 3..........................................................................................................................................10P4 Merit and Demerit of several planning tool used for budgetary control.........................10M3 Different planning tools and their application...............................................................11TASK 4..........................................................................................................................................12P5 Comparison of the way in which organisation are adapting management accounting system..............................................................................................................................................12M4 Management accounting can lead organisation to sustainable success by responding tofinancial problems:...............................................................................................................13D3 Planning tools respond appropriately respond to solving financial problems:...............14CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15
INTRODUCTIONManagement accounting mention about the utilization of the professional knowledge,techniques, and concept in preparing the accounting information in a specific manner (Chenhalland Moers, 2015). It will help to top management in the executing plans and policies, controllingthe business functions, decision making, optimizing the use of resources, disclosure tomanagement and safeguarding assets. In other words, management accounting can be defined asthe processing and presentation of financial and economic data. It would help to determine theperformance of management to implement different types of strategies, making a comparison,budgeting, and forecasting. To understand in detail about management accounting selectedMerlin financial consultancy, which was established in 1988 and is based in London, UnitedKingdom. The company provides financial reviews and Claritas reports as well as advisoryservices in the field of mortgages and more on. It provides financial advice to manufacturing andretail companies such as Airdri Limited, which is an Air Dryer manufacturer.This report covers several topics like management accounting, systems, it is reporting, use ofvarious costing methods to calculate net profit. Along with, merit and demerit of planning toolsof budgetary control. Additionally, the way in which the management accounting system appliedto sort out of different financial problems.TASK 1P1 Management accounting and essential requirements of its systemsManagement accounting– It is a process of determining and communicating financialdata within an organization. The manager of the company evolute the performance of a businessand their strategies to intensify it. Management accounting act of preparing a sense of financialand costing data and translating that data into useful information for management and officerswithin an organization. Marlin financial consultancy helps Airdri limited to applying it on a dailybasis so that the actual performance of an organization can be measured(Fullerton, Kennedy andWidener, 2014).Management Accounting System– It is connected to an internal system which can useby a company to measure and determine their processes for the management of an organization.These systems are used by the manager in order to track the record of several functional andoperational sections of a business. There is mention about different types of management1
accounting system which are used by Marlin financial consultancy in the reference to providehelp of stakeholders of Airdri limited to understand the actual status of an organization. All ofthem are as follows:Cost accounting system– The particular system can help a manager for determining variouscosts in reference to several activities like manufacturing. Marlin financial consultancy providesadvise to Airdri limited to apply the system to keep elaborated information regarding expensesthat are connected to Air dryer manufacturing and other services. It is essential for a business totrack the record of the direct and indirect cost of business(Honggowati and et.al., 2017). It isbeneficial for enterprises due to provide help it information in reference all the expenses can begathered. The system mainly used as a framework for the analysis of profitability, stock and costcontrol. To forecast the right cost is quibbling for profitable operations.Inventory management system– It is mostly used by a manufacturing company tomanage stock inappropriate manner. This system is applied by Marlin financial consultancy fortheir client of Airdri limited in order to keep the track record of all types of raw materials that areused for production. With the help of a particular system get all detailed information and analysisof each level of production to know the status of stock. There are three different types ofinventory management systems such as LIFO, FIFO, and AVCO.LIFO – In this system recently obtain stock is used for manufacturing activities.FIFO – The particular system earlier bought items are used for production activities.AVCO – There are goods are used on the average cost basis for manufacturing.Airdri limited the applied FIFO system in reference to the preparation of the hand air dryer. Itis essential for all types of businesses to provide help to keep detailed information on inventorywhich is utilized for business operations.Price optimisation system– It is applied by every organization to set optimal prices oftheir different types of product which are produced by the company. The system applied byMarlin Financial Consultancy to prepare the record for Airdri limited to provide help to amanager to set price structure in an effective manner and arrange everything. Different types ofproduct have different prices which are set according to their quality and usage that will able tomeet the expectation of customers or not.Job order costing system– The particular system is assigned with accretion cost ofevery manufactured unit of a business. Through the job order costing system, Marlin financial2
desklib-logo
You’re reading a preview
Preview Documents

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Download This Document