Management Accounting: Techniques, Systems, and Analysis

Management Accounting

Declaration
I certify that the work submitted for this unit is my own and the research sources are fully
acknowledged.
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TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
Part 1..........................................................................................................................................3
LO1............................................................................................................................................3
P1. Describing the meaning of MA and importance of its systems.......................................3
P2. Explaining different methods used for reporting under MA...........................................4
M1. Evaluating merits of different MA systems....................................................................5
Part 2..........................................................................................................................................6
Application of different types of MA techniques..................................................................6
Part 3........................................................................................................................................10
Different type of planning tool to construct budget in organization....................................10
Management accounting for resolving the financial issues.................................................12
CONCLUSION........................................................................................................................13
REFERENCES.........................................................................................................................14

INTRODUCTION
Management accounting (MA) is the procedure which is utilized with the aim of meeting
with the changing requirements of the business. This report provides an insight about eth
different types of MA techniques and reporting system along with the costing techniques for
cost analysis. It also includes various types of budgetary control tools which can be
implemented for exercising control over cost and at last a comparative analysis among two
companies is carried out in regard to MA techniques used by it for resolving tehri problems.
Part 1
LO1.
P1. Describing the meaning of MA and importance of its systems
MA refers to practice of assessing & communicating the financial information to the
managers who makes use of such information in making suitable business decisions. The
main purpose or objective of MA is to help the management of an entity in performing their
business operations in efficient manner. It helps in getting out maximum results through
minimum efforts by making optimum use of available resources within the work
environment. Moreover, it enables in providing improved & better services to the customers
that is been assured by such accounting systems. It helps in maintaining the higher degree of
the morale among employees which in turn helps in improving the productivity and financial
state of Tesco.
MA differs from financial accounting ion several different bases that are as follows-
Basis MA FA
Meaning It means as providing relevant
information to managers in
making strategies, plans and
policies for running the
enterprise in an effective way.
It refers to system that
emphasize on framing final
report of an entity in facilitating
financial information to
interested users.
Information It includes both types of
information that is monetary &
non-monetary.
However, it involves only the
monetary information which is
expressed in numbers.
Users It is been mainly used by
internal management.
It is used by internal as well as
external parties.