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Computation of Management Accounting Using Different Methods

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Added on  2020-07-23

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Management Accounting FROM: MANAGEMENT ACCOUNTING OFFICER 1 TO,1 GENERAL MANAGER 1 4Comp PLC COMPANY1 SUB: MANAGEMENT ACCOUNTING SYSTEM 1 INTRODUCTION 1 TASK 11 P1: Management accounting and its essential requirement 1 objective P2: Methods used for management accounting reporting 3 M1: Merits of MA and its applications5 D1: Critically evaluate accounting reporting system5 TASK 25 P3: Computation of net income by using various costing techniques5 M2: Different management accounting methods 8 D2: Analysis of

Computation of Management Accounting Using Different Methods

   Added on 2020-07-23

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Management Accounting
Computation of Management Accounting Using Different Methods_1
Table of ContentsFROM: MANAGEMENT ACCOUNTING OFFICER..................................................................1TO,...................................................................................................................................................1GENERAL MANAGER..................................................................................................................14Comp PLC COMPANY................................................................................................................1SUB: MANAGEMENT ACCOUNTING SYSTEM .....................................................................1INTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Management accounting and its essential requirement....................................................1P2: Methods used for management accounting reporting......................................................3M1: Merits of MA and its applications..................................................................................5D1: Critically evaluate management reporting system..........................................................5TASK 2............................................................................................................................................5P3: Computation of net income by using various costing techniques....................................5M2: Different management accounting methods...................................................................8D2: Analysis of income statements........................................................................................8TASK 3............................................................................................................................................9P4: Merits and demerits of planning tools used for budgetary control process.....................9M3: Critically evaluation of planning tools..........................................................................10D3: Effective use of tools to reduce financial issues. ..........................................................11TASK 4..........................................................................................................................................11P5: To resolve financial issues with the use of MA.............................................................11M4: Evaluation of financial issues.......................................................................................13CONCLUSION .............................................................................................................................13REFERENCES..............................................................................................................................14
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FROM: MANAGEMENT ACCOUNTING OFFICERTO,GENERAL MANAGER4Comp PLC COMPANYSUB: MANAGEMENT ACCOUNTING SYSTEM INTRODUCTIONManagement accounting information are an important aspect of any business organisationin order to manage their daily financial transactions. A financial manager is held responsible formanaging different organisational activities as well as capital in effectively. In order to do so theyprepare various reports by using accounting systems. “4Com” company uses a variety ofaccounting tools and techniques to control and maintain their operations. As, an accountingofficer I have been required to make a report which can provide necessary requirements of usingaccounting systems in an organisation. The project research carries analysis of different costing methods which can help them todetermine positive and negative results. This will help to make valuable decision in order to getfuture profitability (Routledge, 2014). This project explains how 4com company is usingbudgeting process in accordance to manage their cash-flows and other operating expenses inorder to manager their financial statements. In that context, different methods of budget and itsmerits and demerits are discussed under this particular report. The purpose of this project is toanalyse performance evaluation by comparing financial issues with the other company.TASK 1P1: Management accounting and its essential requirementMA is a technique that belong to integration of financial and non-financial statements topresent valuable information to the top management. It is responsible for taking an effectivedecision for the betterment of an organisation. MA plays a crucial role in delivering necessaryinformation to the people of organisation. They nature and scope of accounting is wide because itconsists of different types of accounting data related to the 4com company. It will be lead topositive decision making if the data provided to the authority is more relevant and accurate. In1
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the other words, all the data that are related to the administration can affect the decision makingif the information is not according to the set standard (Ward, 2012). The management accountantmust consider the belongings of shareholders and also, they are accountable for guiding thecompany in right direction. All are done in order to increase the profit and performance of 4com in coming year. Themain purpose of using accounting system is to make proper utilisation of resources which areused by the company during the year. It will be more effective to determine the total costincurred by company in producing a product and services. The MA will be essential aspects inplanning process as it provides right ways to invest in new venture. However, managementalways tries to get more profit from its limited resource by using appropriate techniques. In thisprocess, they incur heavy funds in achieving their target that will be controlled and managedwith the use of different accounting systems. MA help to control costs and losses which areincurred during production process in 4com plc (Gates, Jean-Louis Nicolas and Paul Walker,2012). As an account officer, it is my important role to use right accounting system to managercompany financial transactions. 4Com plc is a small business organisation which is associatedwith production of electronic products so they need a perfect system to record their dailytransactions. Some of the accounting system which can be used by 4com company are asfollows:Inventory management system: It is said am automatically controlled inventory systemthat is used in order to manage, locate and control objects and material. The main objective ofthis accounting system is to track stock levels, order summary, sales report and delivery timing.It is mostly related with those company which deal in large-scale production of units, 4com isone of them. Cost accounting system: It is simply related with the process of collecting, recording,analysing and evaluating different alternative course of action. The main role of this system is toprovide managers necessary information that are based on cost efficiency and performancecapabilities. In order to determine the cost of a product there are several costs which are usedsuch as normal, standard and actual costing.Price optimisation system: It is considered as numerical analysis by an organisation toestimate how customers will react to various prices for its goods and services through other2
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