Management Accounting reports for Excite Entertainment Ltd Assignment
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Added on 2021-02-22
Management Accounting reports for Excite Entertainment Ltd Assignment
Added on 2021-02-22
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Management Accounting report for Excite Entertainment Ltd
Table of Contents INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 P1 Management Accounting and its different type of systems:..................................................3 P2 Different methods for management accounting reporting......................................................5 M1................................................................................................................................................5 D1................................................................................................................................................6 TASK 2............................................................................................................................................6 P3 & M2 Costs using appropriate techniques of cost analysis to prepare an income statement using marginal and absorption costs:...........................................................................................6 D2................................................................................................................................................8 TASK 3............................................................................................................................................8 M3..............................................................................................................................................10 TASK 4..........................................................................................................................................10 P5...............................................................................................................................................10 b) Organisations adapt management accounting systems.........................................................10 Compare how organisations are adapting management accounting systems to respond to financial problems.....................................................................................................................12 CONCLUSION..............................................................................................................................13 REFERENCES..............................................................................................................................14
INTRODUCTION Management accounting is considered as an important function which is mainly used to analyse the company’s data, for maximising profitability of business operations. This would help in preparing the management reports which can be used to make short-term to manage operational activities efficiently(Lavia López and Hiebl, 2014). An assignment is made to analyse the importance of management accounting system in a company, by differentiating this concept with financial accounting. For this purpose, Excite Entertainment Ltd is chosen that deals in event industry of UK. In order to carry out various operations like budget planning, respondingtowardsfinancialcrisesandmore,howthiscompanycanusemanagement accounting system is being discussed under the present report. For this purpose, various types of reporting, planning tools with benefits and limitation are also analysed by comparing the business strategy of chosen company with one of its competitor. TASK 1 P1 Management Accounting and its different type of systems: Management accounting refers to a process of preparing reports to provide statistical information to a company, in order to take appropriate decisions of business on regular basis. It helps a firm in making future plans by preparing managerial information, which includes entire company’sdatarelatedtofinancialandnon-financialactivities(Leitner,2013).Excite EntertainmentLtd.dealsineventmanagementbusiness,whosemajoractivitiesincludes promotion of concerts and festivals at particular locations, in creative manner. To apply the concept of management accounting in increasing profitability ratio and estimating different costs required for completing a project, it becomes highly essential for this company what is main difference between financial and management accounting, as explained beneath :- Difference between management and financial accounting Basis of comparisonManagement accountingFinancial accounting ObjectivesProvide entire information of company to set goals, mission and plan activities. Disclosetheendresultor financial state of a company on a particular date. AudienceIt is used by managers and otherauthoritiestotake Financial information is mainly used by stakeholders, investors
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