Management Accounting Systems and Reporting Methods

MANAGEMENT ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION....................................................................................................................................................................................................... 4
TASK 1........................................................................................................................................................................................................................ 4
P1 Management accounting system and essential requirements of different management accounting systems.......................................................4
P2 Different method use for management accounting reporting..............................................................................................................................9
P3 Calculation of cost using appropriate methods.................................................................................................................................................11
P4 Advantages and disadvantages of different planning tools used for business control.......................................................................................13
P5 Way in which organization adapt management accounting systems to respond to financial problems.............................................................16
CONCLUSION......................................................................................................................................................................................................... 17
REFERENCES.......................................................................................................................................................................................................... 18

INTRODUCTION
Management accounting is the one of the important area which has significant importance for the business firms. In the current
report, management accounting systems are explained in detail in terms of their essential requirements and suitability. Apart from this,
in the report reporting systems are explained in detail and along with this marginal and absorption costing method are explain in detail.
At end of the report, different ways that can be adopted to respond to financial problems are explained in detail and in this way entire
research work is carried out in research report.
TASK 1
P1 Management accounting system and essential requirements of different management accounting systems
From: Budgeting officer
To General manager of White elephant restaurant
Subject: Management accounting system
Management accounting is the domain that encompasses varied tools and approaches that are used for calculation of cost in
proper manner. It is basically an important tool that is used to compute overall cost of production in the business and measuring
firm performance in terms of cost control in the business. Business managers use number of techniques of management
accounting in their business so as to control cost in the business. Usually it is observed that firms face lots of difficulty in
controlling cost in their business (Zainun Tuanmat and Smith, 2011). There are number of reasons behind this and one of them is
that fluctuation remains consistently in the business and due to this reason it becomes very difficult task to control cost in the
business. In order to solve this problem there are number of tools and methods that can be used in the business. One of these
methods is variance analysis and budgeting. Under budgeting method some of important parameters are determined and firm
target to make its real expenditure within these determined standards. By doing so it is ensured that cost will remain in control in