Management Accounting: Essential Requirements and Techniques

Management Accounting

Contents
INTRODUCTION...........................................................................................................................................3
PART 1.........................................................................................................................................................3
P1. Explain management accounting and evaluate essential requirement of different management
accounting systems (MAS).......................................................................................................................3
P2 Different methods used for management accounting reporting........................................................4
P3 Calculation of cost by using appropriate technique...........................................................................5
PART 2.........................................................................................................................................................7
P4 Advantages and disadvantages of different planning tools for budgetary control.............................7
P5. Compare how organizations follow management accounting systems to resolve their financial
issues.......................................................................................................................................................9
CONCLUSION.............................................................................................................................................12
REFERENCES..............................................................................................................................................13

INTRODUCTION
Management accounting is a word that refers to the process of identifying, measuring,
analyzing and conveying information about the business that is necessary to run the firm and
establish how much revenue the organisation is making. Management accounting is distinct from
financial accounting in that it contains guidance to individual management to identify
opportunities for improvement and sustain performance. The goal of utilizing management
accounting is to upgrade the effectiveness of knowledge that management receives about
company operating indicators. An accountant is a person who analyses data, income, and costs
linked to a company and assists in gaining a competitive advantage. It has been observed that all
nations are affected by the Covid-19 epidemic, which has resulted in the closure of most
companies and the unemployment of many individuals. This is becoming a major challenge for
business owners who want to manage and govern their company efficiently. This study is based
on Innocent Beverages, a medium-sized company that sells a wide range of juices, drinks, and
other products. Such an organization's management makes plans and evaluates financial
statements to assist operate the firm and increase productivity. This study covers a variety of
subjects, including management accounting systems, reporting, planning tools for financial
management, and financial difficulties that may be handled by correctly employing accounting
systems.
PART 1
P1. Explain management accounting and evaluate essential requirement of different management
accounting systems (MAS)
Management accounting: It may be understood as an accounting approach in which
subjective data is usually processed and applied in terms of generating management data.
Management accounting is important in a variety of ways, including strategic strategy, decision-
making, and improved quality of management efficiency. The administrators of Innocent Drink
UK use a variety of accounting systems, which are detailed below:
Different management accounting systems: