Management Accounting and its Types Assignment

Added on - 18 Dec 2019

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MANAGEMENTACCOUNTING1
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1...........................................................................................................................................3P1 Management accounting and its types..................................................................................3P2: Different methods of management accounting reporting....................................................4Task 2...............................................................................................................................................6P3 Techniques of cost analysis to prepare an income statement................................................6M1 Benefits of management accounting systems......................................................................9D1 Management accounting system and reporting.....................................................................9TASK 3..........................................................................................................................................10P4. Advantages and disadvantage of Planning Tools used for Budgetary Control.................10M3. Preparation and forecasting of budget...............................................................................12Task 4.............................................................................................................................................12P5. Adaption of Management Accounting System during financial problem..........................12M4: Role of Management Accounting in an organization........................................................13D3. Accounting tools helpful in fixing financial problems.......................................................14D2. Role of Financial Report for a Company...........................................................................14CONCLUSION..............................................................................................................................15REFERENCES.............................................................................................................................162
INTRODUCTIONManagerial accounting played an important role on the collection and generation ofvarious financial information and data form various functional department of the company. It is aprocess of planning, analyses, interpretation and controlling all this information which can helpto make various decision making by the manager. There are various decision making at thedifferent level like strategic level, operational level and tactical level (Baldvinsdottir, Mitchell,and Nørreklit, 2010). The accounting system is measure the performance of the organization inan effective manner. The present report is based on the Unicorn grocery which is a cooperativestore in the United Kingdom. They provide a wide range of products to its customers which caninclude fruits, breads, packed food items, tea and coffee, fresh juices and other departmental andgrocery products. The cited business unit is owned by democratic members and use a concept ofcooperative model of business. The organization structure of the business in participative whichcan help to resolve a complex conflict in an effective manner. Apart from that the report alsoprovide the firm financial information which can help to make their decision more efficiently.TASK 1P1 Management accounting and its types.Management accounting is the process in which certain management reports and accounts arerequired to be made which will provide the organisation with accurate and timely statistical andfinancial information. This information’s are required by the managers to take day to day andshort term decisions. These reports are basically prepared on monthly or weekly basis to beprovided to an organisations internal audiences. They show the amount of cash and sales revenueand raw material and inventory, accounts receivables, outstanding debts and will also includevariance analysis, charts, etc. Management accounting mainly extends to three basic areas whichare strategic management, performance management and risk management (Bennett,Schaltegger,and Zvezdov, 2013).Different types of management accounting systems:Inventory control system:It is essential for a business organization is to maintained efficiencyin the company. The main aim of this system is to reducing time spend of inventory, monitortime consumption and increase profitability of the company.3
Price optimisation system: - This is one of the most usable modal which helps to calculate thedemand of a product at different price level. The main aim of this approach is to setting up aprice of a product where maximum profit will be gained and demand of such product is to bemaintained. According to the various principles that there is a direct relation between price anddemand for a product. This is essential for a company to set their product price which is not toomuch and should be affordable for a consumer with also provide profit out of them.Cost accounting system:This is one of the most significant tool in the management accountingrelated with the recording all operational and production activities. This approach is using invariety of industries specially in the manufacturing sector. The main aim of this system toidentify cost of a product or services, cost planning and its effective control and record allinformation for the managerial decision making. It will help to produce a product throughmaximum utilization of organizational resources in order to achieve their targets.P2: Different methods of management accounting reporting.The management accounting reporting was prevalent in in the 18 century as well.This many historian have said about this management accounting report in many different waysaccording to their views from time to time .Basically this system of accounting was used by thedifferent industries in past decade. They did not had the advanced ideas about this managementaccounting system. But in today's world this management accounting has evolved into adynamic and extremely important .Due to this management accounting on can be able to develophis carrier in this field (Christ, and Burritt, 2013).The developing business is being able to do hisaccounting work more easy and comfortable . The different method used in the managementaccounting reporting can be explained as given below.Performance report: This is important for every organization is to analyse and evaluate theirperformance on regular basis. For this, they need to compare their past performance andestablished target with the current figures. It will provide the actual position of the company andthey can carry out its work accordingly. For example, after evaluation of historical data managerfound that performance not up the mark. they can easily make corrective actions and improve inthe near future. For performance improvement manager can use variety of tools and helps toincrease staff motivation leads to increase productivity and profitability.Inventory management report: This report related with the various information which required tothe top management in order to control inventory. The main aim of this report is to maintain a4
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