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Various types of accounting systems and their applications

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Added on  2020-07-23

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Management Accounting INTRODUCTION 1 TASK 11 P1: Various types of accounting system and its necessary requirements 1 P2: Different method of accounting reporting system3 M1: Benefits of management accounting systems and their application 4 D1: Critical analysis of reporting system 5 TASK 25 P3: Various costing techniques used to determine net profit5 M2: Utilisation of accounting techniques 6 D2: Critical evaluation of income statement 7 TASK 37 P4. Use of planning tools in budgetary control 7 M3: Evaluation of planning tools

Various types of accounting systems and their applications

   Added on 2020-07-23

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Management Accounting
Various types of accounting systems and their applications_1
Table of ContentsINTRODUCTION..........................................................................................................................1TASK 1............................................................................................................................................1P1: Various types of accounting system and its necessary requirements...............................1P2: Different method of accounting reporting system ..........................................................3M1: Benefits of management accounting systems and their application...............................4D1: Critical analysis of reporting system ..............................................................................5TASK 2............................................................................................................................................5P3: Various costing techniques used to determine net profit ................................................5M2: Utilisation of accounting techniques...............................................................................6D2: Critical evaluation of income statement ........................................................................7TASK 3............................................................................................................................................7P4. Use of planning tools in budgetary control......................................................................7M3: Evaluation of planning tools.........................................................................................10D3: Tools used for resolving financial issues.......................................................................10TASK 4..........................................................................................................................................10P5: Various measures to resolve financial problems............................................................10M4: Analysis of financial problems.....................................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
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INTRODUCTIONManagement accounting is an important measure use by an organisation in order toanalyse financial statements of the company. Various reports related with financial data as wellas other parts of information are intendant as primarily to assist accountant in attaining objectivesof an organisation (Arjaliès and Mundy, 2013). Generally, a accounting system is an essentialfacet those are helpful in controlling operations that are being perform on regular basis. Someaccountant describe MA to be the perfect application that is based on certain principles in orderto create, control, protect and enhance value for shareholder. It needs identification, preparation and interpretation of useful data in order to takevaluable decision making. Use of accounting and reporting system as important tools are moreeffective for the company. In order to analyse net profit during the year are generated by usingspecific costing method. Understanding of planning tools those are helpful at the time ofbudgetary control. Further, this report will examine certain financial issues those are arises in anorganisation and measure to rectify them are clearly explain under this particular project report.TASK 1P1: Various types of accounting system and its necessary requirementsIn every business organisation whether small or medium size needs to have specificaccounting systems. This will be helpful in order to maintain their every day financial transactionin more systematic manner. Management accounting system is one of the types of systems whichis use to record financial data. A single entry system under which only one entry is recorded forevery financial transaction which is the most simplest form of accounting. This is mainly said tobe perfect techniques for mid size organisation such as Zylla Ltd (Bebbington, Unerman andO'Dwyer, 2014). Because there is very less amount of transaction and assets to be recorded. It iscrucial for the purpose of making future forecasting of estimated profits. It has been seen that managing the accounting data and reports in such perfect manner isthe primary aim of accounts managers in order to make crucial decision regarding futuresustainability of Zylla operations. If company is using corrective system to record transactionthey are at very good position to operate business in more effective and efficient manner. Allthese are primarily essential for make proper balance among past and previous yearperformances. It is the responsibility of managers to contribute their valuable efforts in proper1
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allocation of resources. They need to analyse and monitoring every accounting data in order tominimise risk of uncertainty and make plan for incurring maximum profitability. However, roleof accountant is to make use of proper accounting systems in order to make success of Zyllacompany in order to attain long term objectives for an organisation. In order to take decision-making for the purpose of controlling cost and all those expenses which are incur by companyduring the period of time. It is necessary for managers to make financial reports on the basis ofselected information. It will be crucial for making certain improvement in current technologiesand implement modified techniques in accordance to get better results in coming times.Purpose of management accounting is to make use of accounting system while recordingof various financial transactions those are incur by the company during the time (Cadez andGuilding, 2012). The information collected by managers can helpful in order to make crucialdecision-making regarding enhancement of performance and growth of the company. Types of accounting system: There are certain accounting system which is helpful inrecording of financial transaction of the cited company. Likewise, managers needs to make useof those while recording of entries into accounts statements. Some of them are:Cost accounting system: It is known as a systematic design used by an organisation inorder to estimate total cost of their goods for the purpose of profitability analysis. According tothis particular system, managers use to record all those income and cost that are incur by Zyllacompany during production of product and services. In this accounting system, accurate cost ofproducts is analyse and recorded in order to determine total gain from the operations. Inventory management system: According to this particular system which is use for thepurpose of keeping proper record of stock level in the company. The primary objectives ofmanagers is to control and maintain total cost of stock for the purpose of incurring highprofitability. It the managers who look all the records whether to order extra stock and total costof ordering. By the help of this, excess of wastage and cost can be control up to an extent.Job costing system: Under this particular accounting system Zylla company use toanalyse total cost of manufacturing each units are determine. It is the primary role of managers todevelop a job cost which is use only when the products that produce are entirely different fromeach other. It is mainly use for the purpose of allocating costs to an individual projects of acompany.2
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