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Management Accounting Report Tech (UK) Ltd

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Added on  2020-07-22

Management Accounting Report Tech (UK) Ltd

   Added on 2020-07-22

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MANAGEMENTACCOUNTING REPORT FOR TECH (UK) LIMITED
Management Accounting Report Tech (UK) Ltd_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P.1. Explanation of management accounting and the essential requirements of managementaccounting system.......................................................................................................................1P.2. Different types of managerial accounting reports................................................................3TASK 2............................................................................................................................................5P.3. Income statements of Tech (UK) Ltd organisation using marginal and absorption costingmethods.......................................................................................................................................5TASK 3............................................................................................................................................7P.4. Explain the advantage and disadvantage of different types of planning tools used forbudgetary control........................................................................................................................7TASK 4..........................................................................................................................................10P.5. Evaluation of Balance scorecard and some other financial approaches in terms of properaddress of financial issues in the organisation..........................................................................10CONCLUSION .............................................................................................................................11REFERENCES..............................................................................................................................12
Management Accounting Report Tech (UK) Ltd_2
INTRODUCTIONIn this documentation, it defines about several kinds of management accounting tools andtechniques by which organisational manager of Tech (UK) Ltd company can identify somefactors through which all monetary and non-monetary factor of the organisation is assessedsufficiently. Moreover, this study also describes about cost accounting system and inventorymanagement system in the company. This assessment also refers to preparation of incomestatements of Tech (UK) Ltd organisation by utilising marginal and absorption costingapproaches within the firm effectively. Apart from it, this investigation also refers to somemanagement accounting tools and mechanisms by which the firm could resolve their financialissues in an effective form.TASK 1P.1. Explanation of management accounting and the essential requirements of managementaccounting systemManagement accounting: This is a managerial accounting system in which the managerof the business needs to make a report which defines about internal management systemeffectively. This is a methodology of formation of a report at internal basis which defines aboutthe internal financial and statistical data required for the manager in order to make appropriatedecision concerning to business goals and objectives (Bennett and James, eds., 2017).Management accounting is used for making monetary and non-monetary information within theorganisation effectively. Management accounting used to for find out financial rations of the firmby which performance leverages could be figure out and financial standard performance could beset up by company's manager.Financial accounting: This refers to the process by which the business accountingofficer makes recording, summarising and reporting of proper financial transaction within agiven period, in which they need to make development in some areas by which effective decisioncan be made by accounting officer of Tech (UK) Ltd. within the industry effectively. This is usedfor monetary information within the business effectively (Otley and Emmanuel, 2013).Financialaccounting depends on debit and credit system. In case of debit, it increases of assets andexpenses and the decrease the liabilities and incomes. In the business cash is asset and capital isliability of the business.1
Management Accounting Report Tech (UK) Ltd_3
Importance of management accounting as decision-making tools for departmentalmanagerManagement accounting is the most vital part for each organisation which assists themanagement departmental managers in terms of making proper report within the business formaking internal analysis of the business functions and effectively managing them as well. In caseof Tech (UK) Ltd organisational manager, they have also needed to make use of sufficient toolsof management accounting at the workplace for identification of financial issues in theorganisation and making essential decision regarding increment in profitability and productivityof the business in the industry in more relevant form (McLellan and Moustafa, 2011). With theassistance of tools of management accounting in the enterprise, the department manager couldmake relevant analysis of costing within the business and effectively reduce them as well.Cost accounting systems:Cost accounting is a process which has a major goal to capture the organisation's costingof each production level and assessing them at each level in internal production level which iscapital equipment and depreciation as well. Cost accounting has first step to recording thecosting at individual level and then comparisons of input result figure to output actual reportresult in respect to measuring financial performance of the business entity in given period timewithin the organisational environment effectively. Cost accounting system helps the manager togiving prices for each job which is being done in manufacturing plants of the firm. Thus,. Itcould be said that, it assists the business manager to making pricing decision for each job in themanufacturing plant.Different types of cost accounting systems:Absorption costing system approach defines that all fixed and variable costs are allottedto cost unit and overhead in case of computing absorption costing system. Under the marginalcosting system, costa are separated into fixed and variable costs. Variable costs are charged tounit cost of the company.Job costing system: This is a costing system in the organisation which defines about thecosting of each manufacturing job which is being done in the business entity effectively. It is oneof major appropriate approach which can assist the manager of the company in order to makeengagement in terms of production of specific products and services within the organisation in aneffective form. In case of Tech (UK) Ltd organisation, the organisational manager requires2
Management Accounting Report Tech (UK) Ltd_4

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