Concept of Management Accounting - Report
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Added on 2020-07-23
Concept of Management Accounting - Report
Added on 2020-07-23
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Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting and essentials requirements of various type of managementaccounting systems......................................................................................................................1P2 Various methods used for management accounting reporting...............................................3M1 Merits of using management accounting system..................................................................5D1 Integration of management accounting system and reporting with organisational process..5TASK 2............................................................................................................................................5P3 Calculate cost using marginal and absorption costing...........................................................5M2 Use of management accounting techniques..........................................................................9D2 Financial reports that apply for interpret business activities.................................................9TASK 3............................................................................................................................................9P4 Advantages and disadvantages of different types of planning tools......................................9M3 Evaluation of planning tools...............................................................................................11D3 Planning tools for respond financial problems....................................................................11TASK 4..........................................................................................................................................12P5 Adaption of management accounting system to respond financial problems......................12M4 Evaluation of financial issues.............................................................................................13CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................15
INTRODUCTIONManagement accounting is an effective process of identifying measuring, analysing andcommunicating information to attain organizational goals in appropriate time period. It includemanagement decision making, performance management system and controlling which help informulating as well implementing organisation strategy in systematic way. Basically concept ofmanagement accounting is effective aspect which used by manager to gather relevant accountingdata. With the help of this manager easily attain effective control in over the operation whichdirectly contribute in attaining its goals and objectives in appropriate manner (Abrahamsson,Englund and Gerdin, 2011). It is significant part of every type of business whether a businesssmall, medium and large. By using this concept company easily execute their operationalactivities in an effective way which leads in enhancing overall growth of the business. Alongwith this, it make the manager aware towards the actual financial report in which they easily takeall the relevant decision. Present report is based on Zylla, which is a small business organisationin which less than 50 workers work over there. This report discussed about concept ofmanagement accounting and requirement of various accounting system. Along with this,different methods of management accounting is also mentioned under this assignment. Inaddition to this, various benefits and disadvantage of planning tools is also mentioned in thisreport.TASK 1P1 Management accounting and essentials requirements of various type of managementaccounting systemsPreparing financial reports is an effective process for manager to take best as well as rightdecision is called as management accounting. One of the main benefit of this report is to controlentire business operation in effective manner which aid in enhancing company growth at marketplace. Along with this concept of management accounting help manager in preparing effectivereport of employee performance. In this various sources of data like internal and external areused by manager to analyse collected data in most effective manner. Basically concept ofmanagement accounting is related with gathering information of financial terms of the businessorganization such as variation in stock, raw material of the company (Boyns and Edwards,2013). In context of Zylla, the main objective of this company is to attain sustainability and at1
the same time execute all the operational activities of the company in minimum cost. With thehelps of management accounting company easily improve their financial condition and attaincompetitive advantage at market place (Chenhall and Moers, 2015). To attain benefits of thisconcept, it is essential for company to hire good accountant to gather as well as maintainfinancial record of the company in effective manner. Various number of issues arise at the time of executing business activities in whichmanagement accounting is an effective process which helps in removing all the problems andimprove overall performance level of the company. Along with this, it is important for Zylla tomaintain a record of their financial activities to attain set goals and objectives. In this contextthere are some importance of management accounting system which can be understood by somepoints are as follows:Qualitative data: It is an effective way for executing all the business operations in aneffective manner which helps in controlling. For attaining better results, it is importantthat all the collected data must be relevant. Along with this, management accountinghelps in attaining evaluating as well as finding appropriate solution of all the problems inmost effective manner and also implement in business to attain positive outcomes. Ongoing training and information: It is also important for selected company to organizeeffective training programs for their workers so that they can easily understand aboutmanagement accounting concept. Provide relevant data: It is one of the biggest advantage of management accountingconcept which help manager in collecting as well as analysing the relevant data in orderto take right decision towards the business activities in appropriate manner.Along with this, there are some type of accounting system are as follows:Cost accounting system: This type of management accounting is more effective formanager in which they estimate the product and service cost by using various approacheslike cost control, profitability analysis and so on (Chiwamit, Modell and Yang, 2014).For attaining profitability level, it is important for company to estimate the right cost ofthe products by using all these methods because it is more difficult for Zylla to set rightcost of their products. Inventory management system: It is also an effective approach which help manager inmaintaining a better le of cost which leads in reducing the overall cost of the company2
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