Management Accounting and Reporting Techniques for Iceland Manufacturing Ltd.

Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Explicate management accounting and give the necessary requirements of various kind of
administration accountancy systems.: ........................................................................................2
P2 Elaborate the various methods of management accounting report - ...................................3
M1. Evaluate the benefits of management accounting systems and its applications..................4
D1. Critically evaluate that how accounting systems and reporting linked with organizational
process.........................................................................................................................................5
P3 Calculate cost by using appropriate techniques of costs and analyse the income statement
by using marginal or absorption method.....................................................................................5
M2. Apply the range of management accounting techniques and produce financial reporting
documents...................................................................................................................................6
P4. Explain benefit or disfavour of various provision instrument which utilized in fund control
.....................................................................................................................................................6
M3. Examine the utilization of various designing tools and its utilize at the time of budget
prediction.....................................................................................................................................7
P5. Comparison the organise that how they trade with fiscal trouble by using appropriate
position accounting abstraction...................................................................................................8
M4. Analyse that how management accounting helps in resolving financial issues in order to
provide sustainable success.........................................................................................................9
D3. Evaluate that how planning tool help the organization to resolve their financial issues and
get sustainable success................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
APPENDICES...............................................................................................................................12

Absorption costing ........................................................................................................................12
Flexed Budget for the actual activity........................................................................................13
INTRODUCTION
Accounting is the process of recording the financial transactions in a books of accounting that
explains the yearly position of the business in market. It includes the analysing, summarizing
and reporting these transactions to supervision, authority, regulations and tax collection
bodies. It is a process of systematically and correct recording and controlling financial
accounting (Youssef, Moustafa, and Mahama, 2020). It consider the profit and loss accounting
is an activity that are being done in the process of managing the books of accounting. That is
done with the motive of analysing the profit of the enterprise. In this report considering the
firm Iceland manufacturing Ltd. The company is unique British food retailer having 900
outlets all over in UK. It is top named in supermarket for consumers satisfaction. The report
will cover meaning of management accounting and its essentials and in part 2 it will explain
various methods which is utilised for Mgt. Accounting moreover it will include the cash
baudget and other bugets that used in company.
MAIN BODY
Management accounting is the term which is used in organisation in order to record all the
transaction related to cash and bank in regards to examine the exact condition of the firm or to
increase the profitability and reducing overhead cost that is occurred with in the business. It is
the process of preparing reports about business operations that assist managers in building
short term and long term decisions. It aids institution to pursue its objectives by
determining, measuring, analysing, interpreting and communicating details to administration.
This can also be known as cost accounting. Main motive of this technique is to assist the
administration of a company in efficiently operating its features that are planning, organising,
controlling. It consist a various types such as product costing and valuation, cash flow analysis
and financial leverage metrics. These all are the several methods of operating various
accounting with in the organisation by accountants.
According to the Institute of Management Accountants (IMA) “Management accounting is
a profession that involves partnering in management decision making, devising planning and

performance management systems, and providing expertise in financial reporting and control to
assist management in the formulation and implementation of an organisation's strategy.”
P1 Explicate management accounting and give the necessary requirements of various kind of
administration accountancy systems.:
Management accounting system is the organized and synchronised approach of managing
to encourage administration in order to attain the institutional goals and objectives. This process
is commonly a system of analysing both financial and non financial details that is useful in
preparation and devising decisions for a company.
Different kinds of managerial Accounting system.
It is broad concept that has specific concepts that assist management take various
decisions for making the process smooth functioning. These types are listed below.
 Cost accounting system - This technique is used by the manufacturing industry in
regards to estimate the value of ware and other features that are related to inside the
organisation. Authorities of Iceland manufacturing LTD. Are utilising this structure
during producing the food products. It is necessary required by the company in relation
to measure value of their goods and services. With the assistance of correct price,
managers capable to make decisions relating to expenditures of the organisation.
 Inventory management system – It is a combination of procedure or automation
which requires to manage or monitor the stock or assets of the firm. It is important to
control food product and any other goods . It is also utilised to decrease the wastage
and increase the proper allotting of resource or usage. It consist various techniques to
handle stock which is listed below.
1. last in last out - In this kind of structure of stock management system, organisation
uses the last stock list for the producing procedures.
2. First in first out - This method explains the process which uses the material which
received first in the company in order to produce the goods.
3. Average cost - It is used on the basis of ordinary cost where concern measure goods
price on average basis.
From above elaborated techniques of stock management, Iceland Ltd. Adapts a FIFO method in
which they utilise the raw material which is available.