Management Accounting Report of Zylla Company

MANAGEMENT
ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
P1 Meaning of management accounting and requirements of different types of management
accounting...................................................................................................................................1
P2. Methods of management accounting reporting.....................................................................2
P3 Techniques of cost analysis to prepare an income statement using marginal and absorption
costing.........................................................................................................................................3
P4 Advantages and disadvantages of different types of planning tools used in budgetary
control.........................................................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Zylla is a large multinational organisation, it has undergone a multiple changes over a
period of time. These modifications results in expansion of a business into new markets and
locations. It also results in restructuring and acquisitions.
In this report, recommendation for changes have been explained through explaining about
management accounting systems, techniques and planning tools have been explained. Also
financial problems in applying tools and techniques has been described by using management
accounting concepts.
The purpose of this report is to conduct a research on developments in management
accounting and also to recommend changes in accounting system of Zylla company.
TASK
P1 Meaning of management accounting and requirements of different types of management
accounting
Management accounting are all set of provisions related to accounting information which
is to be followed by managers to decide issues within organisations (Ward, K., 2012). Overall it
is the provision of financial and non-financial decision making informations which is useful for
managers. The main users of management accounting are Investors, creditors and operational
managers. Each users have different motives to use accounting informations.
Some of the essential requirements of different types of management accounting are as
follows:
 Traditional Accounting: This accounting system records overall costs through job order
and process costing methods (DRURY, C.M., 2013). Job order costing is used for giant
projects where its easy to record all costs related to individual projects on the other hand
process costing method is suitable for those projects which is producing homogeneous
goods. It is essentially required for Zylla to follow traditional management accounting
system because by following these methods company can determine how it allocates its
costs which is related to Cost of goods sold like raw materials, direct labour and
manufacturing overhead expenses.
 Lean Accounting: This type of management accounting, uses revolutionary techniques
by focusing on strategies to reduce costs. Accounting managers in this system provides
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