Assignment on Management Accounting (Docx)

MANAGEMENT
ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Management accounting and essential requirements of different types of management
accounting systems.................................................................................................................1
P2. Different methods used for management accounting reporting.......................................3
M1. Benefits of management accounting systems and their application within association. 5
D1. Integration of management accounting system and management accounting reporting.5
TASK 2............................................................................................................................................6
P3. Costing techniques to analyse profit and loss for organisation........................................6
M2. Range of management accounting techniques and produce appropriate financial reporting
documents...............................................................................................................................8
D2. Financial reports accurately applied and interpret data for a range of business..............8
TASK 3............................................................................................................................................8
P4. Advantages and disadvantages of different types of planning tools used for budgetary
control.....................................................................................................................................8
D3. Planning tools for accounting respond appropriately to solve financial problems........10
TASK 4..........................................................................................................................................11
P5. The way organisations are adapting management accounting techniques to respond
financial problems................................................................................................................11
M4. Responding financial problems management accounting can lead organisation to
sustainable success...............................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Management accounting (MA) refers to accounting that is utilised by manager of an
organisation in order to make effective decisions. These determinations are being made by
management in order to betterment of performance of controlling functions. This sort of
accounting can help administrators of a company so that they can frame structure of business in a
befitting manner depending upon hierarchical aims and objectives (Bradbard, Alvis and Morris,
2014). The present assignment is based upon AZIO which is a manufacturer of keyboards. This
firm is a manufacturer of electronic keyboard and having around 48 talented employees. Report
will also include cost perspective and different methods to measure the profitability of company
and losses that are being faced by them. Assessment will focus on advantages and disadvantages
of various types of planning tools used for budgetary control. Lastly, it will put light on
usefulness of management accounting techniques in order to reduce all the financial problems.
TASK 1
P1. Management accounting and essential requirements of different types of management
accounting systems
Management accounting
It is referred to as stipulation of financial information that are utilised by company in
order to develop business. According to Christ and Burritt, (2017), management accounting is
defined as a process in which preparation of report along with accounts which aid company in
becoming more accurate so that administration can take effective decisions for both long and
short term success. In other words, management accounting is a procedure that includes different
things like analysis of business costs, operation and preparation of company's financial report
which will help managing directors and managers in decision making process.
Management accounting system:
Managerial accounting system is defined as a process of analysing business costs as well
as operations require in order to prepare internal financial report, records, and statements which
will helps managers to take decisions for accomplishing business goals. It is an instrument that
has been made in order to deliver data which can be utilised by management of AZIO so as to
make effective strategies and policies which help company to accomplish set targets. It is being
found in modern world, most of business firms uses Management Accounting system which are
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having heavy manufacturing plants. This system may aid AZIO in reducing or measuring the
cost of manufacturing process. On other hand, it has also been examined internal MA systems
vary from company to organisation depending on sector in which are dealing in or operations
they are doing. With help of this, AZIO may easily make changes as per functionalities
depending upon numbers that has been computed in management accounting financial reports of
industry (Christopher, 2016). Some of the management accounting systems are Cost-accounting,
inventory management, job-costing and price optimising systems which helps company to
improve its financial performance.
Importance of integrating MA systems:
Modern business world is filled with high digital technology and if company may use
different traditional approaches in order to prepare financial reports then it may consume time of
them. There are certain traditional approaches, i.e. bookkeeping that cannot be afford by
companies. Main intent of MA within AZIO is to support rivalry determinations while looking at
collection, processing, and communicating information. This data is majorly e used by AZIO's
manager so that proper planning, control, and measurement of business can be done with the
help of different strategies.
Role and principles of management accounting:
Management accounting includes principles which aids in managing financial
performance and supports management to take imperative business decisions thus to obtain high
competitive edge (D'Onza, Greco and Allegrini, 2016). Some of the principles are given below: Influence: Effective utilisation of this tactic help manager in influencing staff members
so that they follow all the judgements that has been made by the company. Relevance: Financial information is gathered by managers of AZIO that can help
him/her in making right decisions at correct time. Value: Adequate acquisition of management accounting at AZIO will help them in
computing the current value of organisation.
 Trust: Formulating effective information will help AZIO in building trust among staff.
On the other hand, major role of MA is that it can help managers of AZIO in preparing
financial reports. By using financial reports, managers can easily measure operations and
manufacturing cost of business (Granlund, 2011).
Different types of management accounting systems:
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