Management Accounting Report of Nisa Ltd

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) Management accounting and essential requirements of different types of systems.............1
P2) Management accounting reports...........................................................................................2
TASK 2............................................................................................................................................4
P3) Cost calculation using different techniques..........................................................................4
TASK 3............................................................................................................................................8
P4) Critical evaluation on different types of planning tools used for budgetary control............8
P5) Significance of management accounting systems for responding to financial problems...11
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14

Illustration Index
Illustration 1: Income statement through marginal costing method................................................5
Illustration 2: Income statement through absorption costing method..............................................6

INTRODUCTION
Management accounting is a multidisciplinary approach that is essential for decision
making process regarding business operations. It includes different tools for analysing
organization's performance and further preparing plans for proper management of all activities.
The present report is based on understanding different aspects of management accounting for
improving service qualities of Nisa Ltd. It is retail scale entity of UK that provides services of
groceries, food items and clothes to customers. However, concept of management accounting
including planning tools are to be described for decision making process. Including this, various
methods for management accounting report and costing is to be understood through this
assignment. Moreover, planning tools used for budgetary control can be presented that involves
its positive and negative both aspects. However, several management accounting systems to
reduce financial problem is to be introduced that affects effectiveness of entity. Thus, learners
are able to acquire knowledge about management accounting and its aspects for preparing
planning and decision making through this project.
TASK 1
P1) Management accounting and essential requirements of different types of systems
Management accounting can be defined as procedure that helps in preparing the reports
and accounts of company. This document contains facts and figures about financial and
statistical information of business operations. That helps management in making sound business
decisions for the development of the corporation. It is an essential business function that helps in
keeping the detail about product and services so that managers can allocate funds to each activity
effective and can gain high return over its investments (Otley and Emmanuel, 2013). Report of
management accounting shows amount of cash availability in the firm, raw material,
outstanding, debt, sales revenues etc. By this way managers can forecast the returns and can
make sound decision so that it can meet with the objectives.
Different types of management accounting system
There are many management accounting systems that can be used by Nisa for making
sound business decisions. These are described as below: Traditional cost accounting: It is the traditional approach that is used by most of the
firms. It involves direct cost, labour cost and overhead expenditures of the company in
order to identify the cash flow in the workplace. Nisa can take support of this system
1