Management Accounting Assignment - Crossroads Garage

Added on - 21 Jul 2020

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Management Accounting
Executive summaryAccounting management mainly focuses on the function of the internal cost for any of theorganisationalprocess, which helps in the business, individual or an organisation. This processeshelps in taking a proper decision which is connected to the investment, operation, and as well asproductions in the competitive market. All the organisation require accounting management toknow the ability of the budget of the organisation as well as the cost of the performance and thenallocating some of the funds as per the investment, sales as well as productions. In order to trackspecific selected ratios on daily basis, the organisation has the capability to maintain a accurateperception of the efficiency and effectiveness of its operations. Even though the industry relatedto the hospitality is exciting and dynamic, it faces competitive challenges such as, reliance ondiscretionary income, low profitability, capital intensive, and labor intensive and fluctuatingsales volume2
TABLE OF CONTENTSINTRODUCTION..............................................................................................................................4TASK 1............................................................................................................................................4P1. Explanation of accounting management and need of various types of managementaccounting systems..................................................................................................................4P2. Explanation of various methods applied for management accounting reporting that canapply for the chosen scenario...................................................................................................7P3. Explanation the difference between the two management accounting techniques.............9TASK 3...........................................................................................................................................11P4 Merits and demerits of planning tools..............................................................................11P5 Methods used by organization for resolving financial problems........................................14CONCLUSION:..............................................................................................................................17REFERENCES..............................................................................................................................183
INTRODUCTIONManagement accounting refers to the process where the accounting data are analysed aswell as interpreted through cost accounting. It helps a firm to take control over their decisionmaking and policies. Management accounting is solely based upon cost and financialaccounting. An organization like crossroads garage tries to adopt various tools for analyzingtheir costs in order to assess financial risks. In UK, Crossroads Garage is a leading carmanufacturing company. The company is known for their luxurious collection of cars. Thisstudy is going to deal with the types of management accounting procedures that assist anmanagement accounting officer to manage their costs. The study is also going to discuss aboutthe methods that are adopted by a manager while maintaining accounts. A number of tools aswell as techniques are used for taking control over the capital flow of a small organisation. It canbe said that an organisation like crossroad garage Ltd need to ensure success of their business byrelying upon an effective management accounting system. This study is trying to assess themethods and tools for resolving financial problems.TASK 1P1. Explanation of accounting management and need of various types of managementaccounting systemsThere are various different methods of the accounting management.Decision-makingThe requirement for making a decision occurs in Green core because a manager sufferedwith an issue and attentive study of action is present. In order to decide a particular option themanager will require all the information, which is appropriate to his decision; and he needs tohave some ideas based on which he can choose the best plan. According to Renz (2016), someimportant features that are, affecting the decision may not represent in economic value. Hence,the manager needs to make standard judgments, a decision, which is ‘quantitative’. On the otherside, it is possible when the various relationships and factors, among them, maintained. .Brief4
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