Management Accounting Research Trends
Added on 2020-06-05
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MANAGEMENT ACCOUNTING
ReportFrom: Management Accounting Officer To: General ManagerSubject: To write a report to GM involving management accounting and its various systemtogether with different costing techniques and reporting to enable the organization implementthem.
Table of ContentsINTRODUCTION...........................................................................................................................1LO1..................................................................................................................................................1P1. Management accounting systems and their essential requirements......................................1P2. Various methods used for management accounting reporting..............................................2LO2..................................................................................................................................................4P3 Difference between income statement made through marginal and absorption costing........4LO3..................................................................................................................................................6P4 Advantages and disadvantages of planning tools..................................................................6LO4 .............................................................................................................................................8P5 Ways for responding financial problems ..............................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................102
INTRODUCTIONIncreasing number of challenges in the business world is forcing many organisations toadopt new and modern approaches of accounts. Management accounting is a process ofpreparing various financial and non-financial documents which can assist managers in makingcorrect decision (Bedford, 2015). Zylla Company is a multinational organisation as they arepresent in various countries. This assignment will discuss essential requirements of various kindsof management accounting. It will also explain different methods of reporting. Merits anddemerits of planning tools that are used for budgetary control will also become an important partof this file. An income statement will be made by using marginal and absorption costingapproach. Financial problems generate trouble for a company. This project will also includevarious tools of management accounting which can assist an organisation in overcomingdifferent hurdles. LO1P1. Management accounting systems and their essential requirementsMost of the multi-national enterprises know that they cannot rely on old techniques ofworking like financial accounting. The outer world is changing and the need of concepts likemanagerial accounts is rising. Management accounting focuses on forming the future plans andpolicies of company. Its different systems are used for interpretation of the financial data. Whenan enterprise starts their business in market, they have to deal with troubles relating to earningmarket share and profit (Cokins, 2013). The tools of this latest and modern accounting aim atmaking strategies which can solve the troubles of a firm. There was a time when finance division only concentrated on areas like taxation, costing,etc. But, now they have to consider other significant factors like plans of rivals and trends inindustry, etc. Profit of a company can be raised by lowering down the cost of business. This ismore of an internal process and it is a significant part of management accounting. Enhancingsales is another way of increasing profit. If an enterprise go with this approach then they have tomake decision relating to huge investment (Financial Reporting Center. 2017). Making callregarding ''where to invest'' is bit difficult and managerial accounting is adopted for making thesekinds of important decisions. Management accounting systems are mentioned as below:1
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