Management Accounting - Unicorn Grocery Ltd
Added on -2020-07-23
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Management Accounting
Table of ContentsFROM: MANAGEMENT ACCOUNTING OFFICER..................................................................1TO,...................................................................................................................................................1GENERAL MANAGER..................................................................................................................1UNICORN GROCERY LTD..........................................................................................................1SUB: MANAGEMENT ACCOUNTING SYSTEM .....................................................................1INTRODUCTION..........................................................................................................................1TASK 1............................................................................................................................................1P1: Various types of management accounting system and its application.............................1P2: Different methods of management accounting reporting.................................................3M1: Benefits of using management accounting ....................................................................6D1: Critical analysis of reporting system ..............................................................................6TASK 2............................................................................................................................................6P3 Marginal and absorption costing.......................................................................................6M2: Analysing management accounting tools.......................................................................8D2: Critical analysis of income statement .............................................................................8TASK 3............................................................................................................................................8P4: Advantages and disadvantages of different types of planning tools used for budgetarycontrol.....................................................................................................................................8M3: Evaluation of planning techniques................................................................................11D3: Critical analysis of financial problem............................................................................11TASK 4..........................................................................................................................................12P5 Various financial problems and measure to remove it....................................................12M4: Analysis of financial problems.....................................................................................14CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16
FROM: MANAGEMENT ACCOUNTING OFFICERTO,GENERAL MANAGERUNICORN GROCERY LTDSUB: MANAGEMENT ACCOUNTING SYSTEM INTRODUCTIONManagement accounting is an essential aspects for an organisation to manage there everyday financial transactions (Christ and Burritt, 2013.). It consists of collection of statements fromvarious sources of the department. The primary motive of accounting is to record entries in moresystematic manner in order to attain long term objectives of an organization. Both accountingand management are related with each other. The accounting is the measurement, processing andevaluation of financial data regarding economic enterprises. Whereas, planning, organising,controlling and providing right direction to the company is the primary role of administration. Basically, it is a practical application of management tool to report financial position ofan organisation. The report present useful information about various types of accounting andreporting system to Unicorn grocery Ltd. The company is having very small business operationwith total 70 employees. Evaluation of net profit that are determine by using various costingmethods. Use of planning tools in budgetary control and there benefits in delivering positiveoutcomes for the company are discuss under this project. Examination of financial tools whichare use for the purpose of removing financial problems those are arises in an organisation. Theoverall analyses helps in getting positive outcomes for the company in order to make betterfuture. TASK 1P1: Various types of management accounting system and its applicationIn every business organisation, it is necessary to have perfect accounting system in orderto achieve short and long term objectives (Dillard and Roslender, 2011). MA is well organiseapplication of positive tools and concepts in order processing historical and projected economicinformation of an entity. It generally produce certain record about Unicorn grocery finance1
department whether they are using right kind of system to record there every day transactions.Accounting produce complete image of cash flows those are require to manage economicresources of an organisation. It is profession that consists partnering in decision making, futureplanning and performance evaluation system. These aspects are use prepare various accounts that are control in order to assistperformance of the company. It provide fast data collection to managers in respect to analysecurrent position in front other competitors. It is helpful for recording transactions in systematicmanner so that chances of mistakes can be minimise. The target of the company is to controlextra cost of unicorn grocery so that profitability can be increase. Hence, it is the primaryresponsibilities of managers save and protect costs of company by using certain tools andtechniques (Morales and Lambert, 2013). It will be easy to maintain future sustainability andbalance in performance of every departments in more effective and efficient manner. Accountofficer is primary parties those are responsible for analysing proper financial statements of thecompany so that future investment decisions can be made. With this, certain risk can be mitigate those are affecting productivity at large scale.However, management accounting plays crucial role in delivering positive outcomes byimplementing correct and reliable systems. In order to take valuable decision-making in respectto reduce expenditure for the company by this growth can be enhance. They prepare reportstaking necessary information about every departments. These particular reports are presented infront of shareholders and other investors those are one of the responsible parties involve ininvestment decision-making.Importance of MA:The main aims is to control total cost of production and at the same point of time helps inincreasing efficiency of employees.There are various techniques of management accounting those are having perfect validity,reliability by which better decision can be done.It is crucial for the managers to make certain decision regarding future sustainability.Types of Management accounting system:There are various types of accounting system those are effective for manager to analysevarious aspects of an organisation (Granlund, 2011.). It is mostly relies on normal financial2
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