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Management Accounting INTRODUCTION 3 P1 Essential Requirements of Different Accounting Systems

   

Added on  2021-02-21

16 Pages4722 Words264 Views
ManagementAccounting

Table of ContentsINTRODUCTION...........................................................................................................................3P1Explanation of management accounting and essential requirement of various accountingsystems.........................................................................................................................................3P2. Explanation of various kind of methods of management accounting reporting....................5TASK 2............................................................................................................................................6P3 Costing Techniques for preparing the financial statements....................................................6TASK 3..........................................................................................................................................10P4 Benefits and drawbacks of different planning tools:............................................................10TASK 4..........................................................................................................................................13P5 Management accounting in response to overcome financial issues:....................................13CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16

INTRODUCTIONIn trading and business context, management accounting concerned with presenting andcirculating, organisational and business information to different related or interested parties.Managing key task of business to generate information is main motto of managementaccounting. Decision-making task of managing officials is easily done by adoption ofmanagement accounting's different systems (Ahrens and et.al., 2017). It provide a coreframework for strategic planning and effective actions plans while achieving pre-estimated goals.It's planning tools are used by managers to recognise fiscal issues within entity. The studycontains a discussion on management accounting's definition and systems, its principles,reporting and planning tools in context of Williams Performance Tenders. It is a SME, engagedin manufacturing of boats in UK. Company aims to increase its revenue by expanding businessoutside its current territories . Study also evaluates role of cost, analysis of different costs,financial planning and use of tools or techniques to sort out such problems. P1Explanation of management accounting and essential requirement of variousaccounting systems.Management Accounting: It is a classified and systematic branch of management, which alsocombines accounting with aims to presenting the most relevant and considerable informations tostakeholders. It can be defined as cognitive processes focused on presentation of information toprovide easiness in process of planning and actioning (Bromwich, 2012). Management accounting system: In business entities management accounting is adopted asdifferent systems to cover different areas of operations. These systems facilitates procedures toattain efficiencies in organisational processes. They are frameworks which defines purpose ofeach organisational process. Every task in company is classified in these different systems toimplement them effectively. Important to integrate these within an organisation: Organisation's processes are implemented by different department and process heads toconduct operations. To achieve effectiveness in trade and manufacturing processes, integrationof management accounting' systems is vital. As manufacturing heads manages inventory storage,processing and handles different variety of stocks, which sometimes seems difficult for them. Somanagers integrates inventory management's system in inventory processes by collecting basis

stock information to effectively manage inventories. In Williams Performance Tenders, accountsdepartment operates accounting tasks and processes to provide accounting and fiscal relatedinformations for systems. Origin, role and principles of management accounting: The concept of management accounting was originated with the time of revolution of businessindustries in England around 1960s. The term in initially regarded as cost accounting which isfurther differentiated by different authors and committees (Origin of management accounting.2019). There are wide number of principles are proposed by different people but basicallyprinciples are classified as: Influence:Information should be effective and mustcontain power to influence organisationalprocesses. Relevance:Relevant information should be circulated inmanagement accounting's processes.Values:Results, informations and outcomes shouldcontain some values to business entity.Trust:processes must generate informations whichhas creditworthiness and build trusts in entity. Distinction between management and financial accounting:Management AccountingFinancial Accounting It emphasises on presenting and directing theflow of information for task of taking instantdecisions. It emphasises on presentation of data fordifferent stake holder parties. No legal formalities are required undermanagement accounting.Here legals rules and procedures required to befollowed.It focuses on qualitative and numerical orquantitative elements.It focuses on singly numerical terms andelements.Management Accounting Systems:Inventory Management System: It supports the whole process of inventory holding orstorage of stocks. In Williams Performance Tenders, inventory's of boat manufacturing processis managed applying this system (Chapman and et.al., 2016). Company can assess the actual cost

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