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Management Accounting INTRODUCTION 3 TASK 14 P1 & M2 Explain management accounting system and application

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Management Accounting INTRODUCTION 3 TASK 14 P1 & M1 Explain management accounting along with the essential requirements of the different type of the system which are related to management accounting and application of management accounting system 4 P2 Different methods used for management accounting reports6 D2 Critically evaluate management accountingsystem available |resources reporting in the organisational process 8 TASK 28 P3 & M2 Calculation of cost using different tools and techniques 8 D2 Interpretation of the financial data 11 TASK 312 P4

Management Accounting INTRODUCTION 3 TASK 14 P1 & M2 Explain management accounting system and application

   Added on 2020-02-03

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Management Accounting
Management Accounting INTRODUCTION 3 TASK 14 P1 & M2 Explain management accounting system and application_1
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................4P1 & M1 Explain management accounting along with the essential requirements of thedifferent type of the system which are related to management accounting and application ofmanagement accounting system..................................................................................................4P2 Different methods used for management accounting reports................................................6D2 Critically evaluate management accounting system and management reporting in theorganisational process.................................................................................................................8TASK 2............................................................................................................................................8P3 & M2 Calculation of cost using different tools and techniques.............................................8D2 Interpretation of the financial data......................................................................................11TASK 3..........................................................................................................................................12P4 & M3 Different planning tools which are included in budgetary control and its advantagesand disadvantages......................................................................................................................12D3 Planning tools and sustainable success...............................................................................14P5 How organisation should adapt management accounting system to respond to the financialproblems....................................................................................................................................14M4 Analysis of management accounting for the sustainable success.......................................15CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16
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INTRODUCTIONCost management is the one of the main branch of accounting that is used to do costcomputation for products and services at the workplace.It is a form of approach that is used torecord transactions which assist in allowing the business to predict the impending expenditureswhich aid in reducing the chance to check that budget is properly made or not. Managementaccounting includes the different type of functions which company have to use and the functionsare forecasting as well as planning, organising, coordinating, performance should be controlledin a proper manner (Baldvinsdottir Mitchell and Nørreklit, 2010). Along with this evaluation ofthe financial statements also be done in a effective manner, effective communication, protectionof the business assets along with the tax policies. Supervisor of the business entity have to doproper supervision which help them in attaining goals and objectives. The present report is basedon Guildford Tyre Company which is tyre retailer and enterprise having less than 50 employeesas well as annual turnover is £500,000. In the below mentioned assignment, determination is tobe done on the concept of management accounting on the basis of chosen scenario (Significanceof Management Accounting Techniques in Decision-making: An Empirical Study onManufacturing Organizations in Bangladesh. 2011). Along with this discussion on the differenttools and techniques used for supervising accounting reporting. Further, calculation of costaccording to different techniques. TASK 1P1 & M1 Explain management accounting along with the essential requirements of the differenttype of the system which are related to management accounting and application ofmanagement accounting systemToThe Board of Directors of Guildford Tyre company Date: 5th Octomber 2017Subject: Essential requirements of management accounting systemsAs a general manager of Guildford Tyre Company, they have to use the concept of managementaccounting which helps in gathering, evaluating as well as analysing the information along withthe data so that all the operations as well as financing activities of a business. These reports ofthe business entity are directed by the managers of a business rather than any external entitieswhich includes shareholders as well as lenders (Bennett, Schaltegger and Zvezdov, 2013). The
Management Accounting INTRODUCTION 3 TASK 14 P1 & M2 Explain management accounting system and application_3
main objectives of the management accounting is measuring performance and it can measure thetwo type of performance which involves the employees performance and another one isefficiency measurement. In both the type of the performance management the employees of thecompany have to make corrective actions so that they can improve the performance in the marketplace when they are facing high competition. Along with this it helps in assessing the risk withthe allocation as well as utilisation of the available resources so that the staff members ofGuildford Tyre Company generate maximum profits. For doing the proper and appropriatemanagement, appropriate presentation of the various financial statements is necessary and on thebasis of that they can accomplish success in the market (Busco and Scapens, 2011). Along withthis management accounting having some advantages which includes as it assist in tracking,recording and reporting the financial review. It assist in reducing the expenses so that the cost of the economic resources along withthe other business operations. Another benefit is to improve or increase the cash flow. It helps inmaking the appropriate budget so that proper expenditure should be done. Management accounting is a profession decision is made in perspective of managementof Guildford Tyre Company. Along with this they have to devise the planning as well asperformance management system which assist in doing the supervision (Christ and Burritt,2013). Moreover, they can take advice from the experts in the financial reporting along with thecontrolling which helps in doing the formulation of the different strategies. Different systemsare:Cost accounting systemIt is a system which helps in managing the cost of the productby producing more merchandise and on the basis of that theycan do profitability analysis, inventory valuation and costcontrol. It estimating the cost so that they can earn maximumprofits. M1Main benefit of cost accounting system is that in it all sort ofexpenses related to all products are added to compute overallcost of products. Managers can easily obtain overall overviewof cost of production of all products. It is applied in businessfirms whose product lines are concise.
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