Management Accounting: Systems, Reporting, and Techniques

Management Accounting
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INTRODUCTION
Management accounting is defined as a process of analyzing financial statements which
includes net profit and loss account, balance sheet, cash-flow statement etc. so as to frame an
efficacious arrangement and argumentation for the achievement of an organizational goals and
verifiables. It gets supported by financial accounting who is liable to prepare final accounts on
annual basis. The concept of administration accountancy maneuver an essential role in
strengthening financial position of organizations by contributing efforts in improving financial
performance and sustain in agnostic market for long time period. The instant assignment
document is based on Excite Entertainment Ltd. which is occupied in leisure and entertainment
industry in the UK. The report discusses the various systems and reporting of management
accounting along with their application within an organization. Along with this, the report also
briefly explains different cost accounting methods and its suitability for an organization,
designing tools to control monetary fund in addition with this meritoriousness and deservingness,
application of administration accountancy methods for resolution financial issues faced by an
organization etc.
TASK 1
Section (A)
(a) Difference between management accounting and financial accounting system
Management accounting system : Management accounting system is the process of identifying
the value of the dealings and the activities which assist in formation of the fiscal reports. The
documents which are formulated helps the administration in determination devising.
Financial accounting system : It is a method which assist in analyzing the financial information
of the administration which will help them in preparing financial statement and decision making.
Comparison between management accounting and financial accounting system:
Basis Management accounting system Financial accounting system
Legal
requirement
There is no legal req1uirement to
follow this system in the organisation.
It is compulsory for the organisation
to follow the financial accounting
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system as it helps them in formation
of financial statements.
Format of
presentation
This accounting system do not have an
specific format in which the reports has
to be presented.
On the other hand, accounting system
requires to follow the specific format
which is been specified in the acts that
regulates them.
Types of data
used
The kind of data that is used in this
system includes both financial and non
financial information.
In this financial accounting system
only financial data is used to prepare
the reports.
.
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