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Management Accounting of Jupiter

   

Added on  2020-10-05

16 Pages4899 Words249 Views
Management Accounting

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1A. Management accounting and requirements of different types of accounting system............1B. Different types of accounting reporting systems....................................................................2C. Benefits of management accounting system..........................................................................4D. Analysis of integration of reports and accounting system.....................................................4TASK 2............................................................................................................................................51. Calculation by various costing methods.................................................................................52. Preparation of profit and loss statement by using tools..........................................................7TASK 3............................................................................................................................................8A Different budget with examples..............................................................................................8B. Advantage and Disadvantage of planning tools to control budget.........................................9Analysis of use of different planning tools and their application.............................................10TASK 4..........................................................................................................................................11A. Comparison with other organisation to adopt management accounting to deal withfinancial issues..........................................................................................................................11B. Analysis of ways to respond financial issues.......................................................................12C. Evaluation of planning tools for accounting respond for solving financial issues...............12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................13

INTRODUCTIONManagement accounting is a process of evaluating business costs and operations in orderto make internal financial reports, accounts and records which helps managers in decisionmaking process. As main focus of every company is to plan and manage their operation insystematic way so that goals of organisation can be achieved. Management accounting is veryhelpful for internal stakeholders on order to take better decisions for company. To betterunderstand concept of management accounting, Jupiter Plc a medium sized organisation is beingselected. The essential requirements of different type of management accounting systems isbeing discussed in this report. There are various management accounting reports which helpscompanies is being explained in this report. As management accounting has various benefits tothe companies which is also discussed in this project report. Apart from this, comparison amongother organisation for utilise of management accounting to deal with various financial problems.TASK 1A. Management accounting and requirements of different types of accounting system.Management accounting is a method that is used to prepare accounts and reports ofmanagement which gives actual and on time financial and non-financial data needed by managerand accountants. It presents accounting data so that they explicate the plans and policies followby management to operate regular activities to make short term and long term decisions. It is ainternal process help firm to execute the overall functions of management. Junior managementaccountant of Jupiter Plc used this system to improve accounts and finance of organisation. Andalso measure and assess the business process and risk efficiently and effectively to achieve goalsand objectives of company. The different types of management of accounting system that isrequired by junior accountant are mentioned below:Inventory Management System: Inventory management is a continuous process to moveproducts into and out of a firms location. This system is used to accumulate technology withoperation and process that monitor and manage the maintenance of furnished inventory likefinished raw materials or goods and supplies. This system used by Junior managementaccountant of Jupiter Plc to trace inventory continuously and optimise process of business byfinancing in cloud based software package. That assist them to maximize sales, productivity andget good investment returns (Moorthy and Yacob, 2013). And also help company to enhance1

transparency, improve relationship of employees, vendors and suppliers, reduce cost ofoverheads, labour and dead inventory and improve capabilities of forecasting and reporting. Price optimization: price optimization is the method used to identify price structures thatconsumers pay willingly. Junior management accountant of Jupiter Plc are using this system tomodify the price of consumer system by assuming their response at various levels of price. It isuseful for organisation that is based on their products manufacturing cost, demand of everyproducts and levels of competitors. It assist them to balance the profit and cost of goods. So, thatthey sales their product quickly into market and maximize profitability (Masztalerz, 2013).Cost System: Cost system is a structure used by company to attain cost of goods and theiractivities by various manufacturing process. It records cost that is occurred during business. Itevaluates the stock according to manufacturing price of products and services. This system isessential for Junior management accountant of Jupiter PLC as it determine their cost of productto examine stocks, control cost and analyse profitability. The data collected from this system fordifferent purpose such as developing tactical and strategical plans for future operations andmatching actual cost with budgeted cost levels to controlling function.Job Costing System: Job costing system is a method used to gather data related tomanufacturing cost of each product and services. It is a information of accounts that is used torecord expenditure of producing product. Junior management accountant of Jupiter Plc used thissystem so that they ascertain the standard of computing system from collected data. This systemcollect information from direct materials, direct labour and overhead cost which assist them toallot product cost that acceptable to achieve profitability. Process of job costing system followby company are receive enquiry, estimate job price, order receiving, production order and costrecording (Kaplan, 2012).B. Different types of accounting reporting systemsManagement accounting reports are crucial database for the companies as whichdetermines effective and efficient decision making within organisation. These reports assistcompanies in order to achieve their goals with proper efficiency. The reports plays crucial role inplanning, regulation, measuring of performance and decision making. As reports are beingprepared and generated through out the financial year because important decisions are beingmade in organisation after evaluating these reports. Managers evaluate reports and highlight thekey points from reports and convert them into important information for company. There are2

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