Management Accounting Systems and Reports for Eastern Engineering Co. Ltd

Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Management Accounting Systems:........................................................................................1
P2 Management Accounting Reports:.........................................................................................3
M1 Evaluating benefits of discussed MA systems:.....................................................................4
TASK 2............................................................................................................................................5
P3. Computation of certain costs with the help of applying suitable methods related with cost-
analysis to formulate important financial statements:.................................................................5
M2. Accurately application of various of management accounting techniques along with
producing essential types of financial report...............................................................................7
D2. Produce financial report by apply along with interpret activities of business activities.......7
TASK 3............................................................................................................................................8
P4. Explaining major advantages addition to disadvantages of different types of planning tools
which are used for the purpose of budgetary control:.................................................................8
M3: Analyses about certain uses of planning tools/methods addition to their application in
reference to preparing and forecasting of budgets in the company:............................................9
TASK 4..........................................................................................................................................10
P5 Comparing about multiple ways that shows how financial managers are effectively
working with MA systems so to respond towards multiple financial problems in real world. .10
M4 Analysing the ways in which companies respond on financial problems in which
management accounting will be effectively leading towards sustainable successes:................11
D3 Evaluating about the ways through which various planning tools can help in responding
effectively for resolving financial problems that takes the venture to sustainable success:......12
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Management accounting refers to an aspect of finance in which is there to identify,
analyse, evaluate, interpretation with expressing information to the managers in order to achieve
goals and objectives. This is there to refer over the cost that is there to make accounting of
information which has been helping over making decision more effective. It is referred to as cost
accounting and information which has been helping to make decision making mechanism
provide effectiveness. Managing of firm work related to accounting is different from various
other method. It assists managers to frame rational decisions to attain strategic objectives
promptly. This assignment is based over Eastern Engineering Co. Ltd that is popular as medium
sized venture in the field of manufacturing.
Things to be covered in this report is based over various kinds of managerial accounting
system. Further various approaches is being used in order to handle reporting has to be
explained. Along with benefits and drawbacks that is planning mechanism which is being used
to maintain budgetary control. Final cost is there to make determination for using correct method
in reading income statement through marginal and absorption method.
TASK 1
P1 Management Accounting Systems:
Management accounting system is there to provide accounting information for
development over strategies which has been implementing managers for supporting day-to-day
operations. In simple words, this allows management for conducting all tasks, with plaining,
scheduling, hiring and regulating with managing. Management is there to include process of
making a task happen through plaining, scheduling, hiring, managing and regulating. Managing
of accounting has to be focused over particular kind of accounting method which is there to play
significant role through various kinds of business establishment possible. Various accounting
system that can be used by Eastern Engineering Co. Ltd are explained as follows:
 Cost accounting system: Under this kind of managing system it is reference is majorly
focused over costing system of production. This method is being used by the organization
for improving efficiency of multiple costs and maintaining them, lighting on profitable as
well as non-profitable practices, setting up product prices, guiding employees for
reducing prices and generating information about proper planning of using available
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resources.. The cost accounting method helps to measure the cost of goods that are
essential to the organization of sustainable operations. This is helpful in monitoring of
manufacturing cost related activities. Eastern Engineering Co. Ltd is required to be
incorporated through method that has been practising to help tracking of expense for
manufacturing of operations.
 Inventory management system: This has been forming accounting framework that is
related over creating effectiveness within management of an organization's stocks like
raw materials, finished products and within an organization. Also it helps in assisting of
inventory within the management system and decisions should be taken regarding
procuring of raw materials with the capacity of production. Since it helps to recognize
the quality of inventory in stores. The correct accounting system will assist the company
in determining the supply of raw materials, finished products and other inventories
decisions. As in Eastern Engineering Co. Ltd company, inventory accounting system is
essentially required to determine the quality of materials and also finished products
within the organization (Johnstone, 2018).
 Price optimisation system: In this kind of system accounting mechanism has been
helping for assessing price of good and services to be provided. Price management is that
method which is helpful in assessing of customers response over various price rates. As
there is no price management program within Eastern Engineering Co. Ltd it becomes
hard for determining of correct prices of its products. In correspondence accounting it is
very much essential for an organization to have correct price of product and services.
Thus, Eastern Engineering Co. Ltd 's requires price optimization system to allocate
effective products' prices within the corporation.
 Job costing system: As per this MA system it has been helping over assessing separate
job costs over various operations. Job costing is that kind of framework which is used in
providing of accurate details within the job costs and within the capacity of business
organizations for making sensible decision. Generally accounting system has an very
important role for controlling job costs. In other words method through which labour
costing uses within the business sector this is used for evaluating production of cost to be
surpassed the prices of materials which increases profit within an organization. In Eastern
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