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Management Accounting - Assignment (PDF)

   

Added on  2020-11-23

17 Pages4294 Words153 Views
Management Accounting

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Meaning of management accounting and different types of management accounting systems.1different methods of management accounting reporting........................................................3Benefits of management accounting system with organisational context..............................4Integration of management accounting system and management accounting report inorganisational process............................................................................................................5TASK 2............................................................................................................................................6a.) marginal costing................................................................................................................6b.) absorption costing.............................................................................................................6TASK 3............................................................................................................................................9Advantages and disadvantage of different types of planning tools used in budgetary control9Use of different planning tools for preparing budget ..........................................................10TASK 4..........................................................................................................................................11Adoption of management account systems to responds to financial problems of theorganisation..........................................................................................................................11Factors which leads to develop organisational growth by use of management accounting12Response of planning tool for solving financial problems in achieving sustainable success13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15

INTRODUCTIONManagement accounting is the term which is used in decision making to managers withthe provision of financial and non-financial accounting. This present report will cover definitionof management accounting with its essentials requirements, its different methods and its benefits.Further, in this report calculations is to be provided of management accounting techniques.Different types of planning tools in budgetary controls and also for preparing forecasting budgetsexplanations are to be provided in this report. Further, in this report adoption of managementaccounting to solve financial problems is to be discussed.TASK 1Meaning of management accounting and different types of management accounting systemsManagement accounting is the process of recording accounting information which is usedby managers before they take any decision for organisation operations. Management accountingused to measure performance and functions of day to day activities of business organisation(Woodruff, 2018). Therefore, it helps management to perform activities like planning,organising, staffing, directing and controlling. `different types of management accounting systemsTo measure financial information and regular activities of the company, management accountingis created. Different types are as follows-scopeTo measure typical financial data of the organisation management accounting used in all thedepartments of the organisation. Departments may be finance, IT, marketing, human resources,operations and also sales.Product costingManagement accounting also used to identify actual costs, profits and also cash flow of goodsand services of the organisation. Main motive to create management accounting is for productcosting. For allocating overhead expenses to drive true cost of products this accounting isdeveloped by managers.Cost analysis1

To identify actual cost from results of the operations, executives use this performance report(Nishimura, 2018). This is also known as variance analysis accounting which used to measurenon-performing areas of the organisation.Constraints analysisAnother importance for developing management accounting is to analyse workflow of theproduction process and sales process of the organisation. Therefore, to prevent obstacles orconstraints this management accounting is prepared. Trend analysis and forecastingManagement accounting is created by organisation to overlook the future of the organisation. Forforecasting future managers will use trend lines in their accounting process which includesbudgets, administrative expenses etc.different methods of management accounting reporting2

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