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Management Accounting of Base Build Services Ltd | Report

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Added on  2020-01-28

Management Accounting of Base Build Services Ltd | Report

   Added on 2020-01-28

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MANAGEMENTACCOUNTING
Management Accounting of Base Build Services Ltd | Report_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK1.............................................................................................................................................1P1 Explain management accounting and different types of management accounting systems. .1P2 Explain different methods used for management accounting reporting................................3TASK 2............................................................................................................................................5P3 Calculate costs using appropriate techniques of cost analysis such as marginal andabsorption costs...........................................................................................................................5TASK 3............................................................................................................................................9P4 Explain the advantages and disadvantages of different types of planning tools used forbudgetary control........................................................................................................................9P5 Compare how organisations are adapting management accounting systems to respond tofinancial problems.....................................................................................................................11CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
Management Accounting of Base Build Services Ltd | Report_2
INTRODUCTIONManagement accounting is the process that is used to identify, interpret and communicatethe financial information with other members of the firm. On the basis of this, manager will beable to achieve their goals in an efficient manner so that their profitability level can be achieved.Through this, higher authority will be able to prepare management report with an appropriatefinancial information so that day to day operations can be managed in an efficient manner. Anenterprise will be able to minimise their risk by using these accounting data and that will leadtowards the success (Baldvinsdottir, Mitchell and Nørreklit, 2010). The present report is basedon Base Build Services Ltd which perform their operations in construction industry. They aremanaging their accounting data so that their overall performance can be improved. In thiscontext, report explains the different types of management accounting and their benefits for anentity. Along with this, cost can be calculated on the basis of absorption and marginal approach.It focused on different types of planning tools and budgetary control techniques. Further, itexplains that how problems can be resolved by using the effective accounting techniques.
Management Accounting of Base Build Services Ltd | Report_3
TASK1P1 Explain management accounting and different types of management accounting systemsManagement accounting is a particular area in which financial manager prepare accountsand reports that is helpful for them in making decisions regarding any investment. Through this,company will be able to manage their operations and activities in an efficient manner. This is aprocess which includes some of the steps such as identifying, analysing, interpreting andcommunicate the important information with the managers of the other functional area.Management accounting is based on the past performance of enterprise as through this they willbe able to do planning and forecasting in an efficient (Contrafatto and Burns, 2013). Throughthis, they will be able to achieve their future goals so that success can be achieved and theirfinancial growth can be enhanced. There are some of the benefits of management accounting like through this company willbe able to enhance the efficiency of their different functional areas so that overall growth of Basebuild services Ltd can be improved. It is beneficial for the firm in terms of price fixing, decisionmaking and so on. On the basis of these, an enterprise will be able to accomplish their plannedobjectives in an effective manner. It is useful for the construction industry as through this theywill be able to control their wastage and other operations. The cost can be controlled by the firmin an efficient manner as through this an entity will be able to enhance their profitability level.The financial report is flexible in nature so company can make this on monthly basis as per theirrequirements so that they can improve their overall performance. There are different types of management accounting system and these are essential for anenterprise so that their overall cost can be controlled in an effective manner (Dillard andRoslender, 2011). Some of these are:Throughput managerial accounting system: It is a management accounting approachwhich helps the manager in order to make the decisions so that overall profitability canbe achieved. Through this, higher authorities of Base Build Services Ltd. will be able toidentify the factors which may affect their performance. Due to these factors, anenterprise will not be able to enhance their profits. So, by using this approach anenterprise can make their decisions in an efficient manner and that will lead towards thesuccess.
Management Accounting of Base Build Services Ltd | Report_4

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