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TASK 11 P1 Management accounting and its different system

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Added on  2021-01-03

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Management Accounting INTRODUCTION 1 TASK 11 P1 Management accounting and its different system 1 P2 Explain different method of management accounting and reporting 2 M1 Evaluation of benefits that various management accounting system 3 D1 Management accounting systemand management reporting systemare integrated with process of organisation 4 TASK 24 P3: Calculation of cost using different costing methods 4 M2 Management accounting technique and financial reporting documents5 D2 Financial report which apply to interpret business activities 5 TASK 36 P4 Advantage and dis-

TASK 11 P1 Management accounting and its different system

   Added on 2021-01-03

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TASK 11 P1 Management accounting and its different system_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting and its different system.............................................................1P2 Explain different method of management accounting and reporting................................2M1 Evaluation of benefits that various management accounting system .............................3D1 Management accounting system and management reporting system are integrated withprocess of organisation...........................................................................................................4TASK 2............................................................................................................................................4P3: Calculation of cost using different costing methods........................................................4M2 Management accounting technique and financial reporting documents..........................5D2 Financial report which apply to interpret business activities...........................................5TASK 3............................................................................................................................................6P4 Advantage and dis-advantage of different types of planning tools used for budgetarycontrol.....................................................................................................................................6M3 Usage of different planning tools to prepare and forecasting budget..............................8TASK 4............................................................................................................................................8P5. Organisations are adapting management accounting systems to respond to financialproblems.................................................................................................................................8D3 Various planning tools to resolve financial problems....................................................10M4. Management accounting in response to financial problems can lead organisation tosustainable success...............................................................................................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
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INTRODUCTIONManagement accounting refers to the process of recording, summarising and evaluatingthe financial information so as to make corrective decision for the betterment of an organisation.It assist the management to formulating an effective plans and strategies which help company inretain their financial position among their rivals in competitive market. Analysis of financialinformation such as profit and loss a/c, Balance sheet, Cash flow statement etc. help managementin using various management accounting and reporting systems to achieve stability in market.The present assignment report is based on Excite Entertainment Ltd. which operates in leisureand entertainment industry in the UK. It is engaged in conducting activities related withpromotion of concerts and festivals throughout the UK. The report discusses the differentmanagement accounting and reporting systems along with their benefits to an organisation. Thereport also includes different costing methods and budgetary control tools, financial resolvingtools etc.TASK 1P1 Management accounting and its different systemManagement accounting is well-defined process that work for recognising, presentingand summarising of different financial transaction of an organisation. For record of financialtransaction different account are need to be maintain such as balance sheet, profit & loss accountand cash flow statement. This concept is useful to tracking the future cost of company that willbe bear by company in future to operate their business operation (Ax and Greve, 2017). The management of Excite Entertainment Ltd. use different accounting system tomaintain their financial records. As management accounting system help an organisation to takedecision by which company achieve their desired goals and objective. Some accounting systemthat can be adopted by Excite Entertainment Ltd. are as follow:Cost accounting system- This accounting system help to analysis cost of goods orservices which include variable as well as fixed cost of a company. For Excite EntertainmentLtd. it is beneficial because it provide estimated cost that is invested by company to manufacturedifferent products and net profitability that is invested by company for future. Job costing system- 1
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With job cost accounting system Excite Entertainment Ltd. can calculate the total cost ofcompany that is incurred to manufacture different goods and services. This will be useful forExcite Entertainment Ltd. because with this system financial department of company computeestimated cost that is endure for making single unit product (Garrison and et. al., 2010).Price optimisation system- With price optimisation system Excite Entertainment Ltd.identify their different potential customer that will buy products from company in future. For thisresearcher are hired by management which help company to find out satisfaction level of theirexisting customer. It help company to secure their estimated profits for future.Inventory management system- With this system company find their current position ofasset that are stored or present in company warehouse. For Example- Excite Entertainment Ltd.use this system to ensure that essential goods that are demand by customer are present in thestock. Example- IF any firm want to identify or track their loan’s then this system help to checkcurrent status for company (Management accounting and its importance, 2019).Difference between management accounting and financial accounting1.The term management accounting is useful for company to develop long term plans andpolicy for a company. As they contain necessary information and relevant informationthat is used by company to make effective decision. While the term financial accountingis used to prepare financial accounts for company such as balance sheet, fund flowstatement etc. IT help company to ensure their current financial position in finance sectoror market (Gibassier and Schaltegger, 2015). 2.Management accounting is use by the internal department and top management ofcompany. As they are authorize and responsible to make strategy for business. While infinancial accounting the role of external parties is included like investor, banks andstakeholders of company.3.With management accounting company focus for future perspective while in financialaccounting company approach present and historical approach for business.P2 Explain different method of management accounting and reportingThere are different type of management accounting reporting system which facilitatemanagement to identify their current position in present scenario. With this an organisationprepare different plan and policy which help company to accomplish their objective. Severalmanagement reporting systems that are implement by Excite Entertainment Ltd. are as follow:2
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