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Management Accounting of Hungry house company - Case Study

   

Added on  2020-01-07

17 Pages4764 Words176 Views
MANAGEMENTACCOUNTING

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Explain about the management accounting as well as its different systems and theirpotential requirements in the Hungry house company...........................................................1P2 Explaining different reports of the management accounting reporting.............................5TASK 2............................................................................................................................................5P3 Formulating income statement using marginal and absorption costing tool.....................5Segregation between two tools of costing like as marginal and absorption...........................8TASK 3............................................................................................................................................9P4 Different planning tools of budgetary control along with its several benefits and demerits.9TASK 4..........................................................................................................................................11P5 Comparing different kinds of management accounting systems which used by Hungryhouse to overcome financial shortfalls.................................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................14

INTRODUCTIONManagement accounting is very supportive for the each business organisation in order toframe the business and financial plan for the current and future period of accounting. When anentrepreneur will not implement and adopt the management accounting process and method atthe working environment then it will not capable to operate in the segment and improve its figureof revenue. For analysing about various concepts which are associated with the managementaccounting there are is a small business firm is selected which is such as Hungry House companywhich operates in the UK. The chosen firm provides food products and services to the consumersusing online place. By reading the report reader can know about various systems and tools usedby the company for make the financial plan better and effectual. Further, he can analyseregarding the reports which are supportive to the management accounting reporting. Beside this,various tools of planning as well as costing are to be shown with the help of current report.Moreover, the report which studied on the Hungry house is to looks or focuses upon severalmethods and techniques for analysing as well as overcoming financial constraints comes intoconsideration within workplace.TASK 1P1 Explain about the management accounting as well as its different systems and their potentialrequirements in the Hungry house companyBusiness ReportTo,General Manager,Hungry House companyDate: 21st September 2017Subject: Management accounting systems and their essential requirementsExplaining management accounting and its benefits for the cited company:The process of accounting in which various small reports are prepared, analysed,interpreted and decisions are taken on the basis of it is known as management accounting. Atthe particular accounting system the company able to make those kinds of decisions which are1

complex as well as typical. When complex situations are resolved then business of Hungryhouse can easily overcome financial problems and become more financially sound. The current company is operating in the industry of retail in the UK and provide itsproducts and services at the national level. The company allow and offer food products andservices to the local community of UK using the online portal and websites (Otley, 2016). TheHungry house company operates at the small level and not having offline stores and shops inany area. Due to the respective reason the company is highly able to sell more number of fooditems because in the current market there are very fewer consumers who not want to gophysically at the stores. It is the best and profitable company in the sector of online foodordering. In context to this, the Hungry house business entity use lesser amount of the capitaland then manufacture or cook the food items at the broad level and generate higher profit. Asper the respective analysis it can be clearly said and states that the Hungry house managing costlevel as well utilize the financial and other resources efficient way. Further, optimum utilisationof the available and new several resources is also significant for the firm and a system orapproach of the management accounting.In the accounting segment there are different methods are included and among them twoare mostly used by the companies which are like as financial and management. The current casestudy is based on the management accounting at where the Hungry house easily divide andsegregate the overall business in small parts. The narrow parts of the entity in whichmanagement accounting supports to divide are such as process, division, functions, structures,departments, accountability etc. At the workplace to manage whole firm there are smallresponsibility or accountability centres are to allocated such as profit, investment, expense,costs etc (Boyns and Edwards, 2013). On the basis of expenses and cost the company derivetotal and unit cost further price to sell the each and every food item is to be determined. Inaddition to this, the costs are carried out by the profit centre and then calculated that at the yearend how much amount of margin is generated. Further, responsibility to take decision formaking investment is to given to the investment centre.In the management accounting, there are wide range of systems as well as methods areincluded by which the Hungry house able to manage the overall business and cooking processin adequate manner. Various systems are elaborated as below:2

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