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Management Accounting Role in an Organization
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Added on 2020-02-17
Management Accounting Role in an Organization
Added on 2020-02-17
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Management Accounting
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1 ...........................................................................................................................................3P1 Explain management accounting and its types.................................................................3P2 Different types of management accounting reports..........................................................5M 1 benefits of management accounting system...................................................................6D1: Critical evaluation of accounting reporting system ........................................................6TASK 2............................................................................................................................................7P3 Explain the difference between the two management accounting techniques..................7M2 Application of range of management accounting tool.....................................................9D2 Financial report and interpretation of the data................................................................10TASK 3..........................................................................................................................................10P4 Benefit and limitations of budgets and how they are helpful in planning......................10M3 Different planning tools.................................................................................................11D3 Evaluation of manner in which planning tools solves the financial issues....................12TASK 4..........................................................................................................................................12P5 Comparing among two different organisations accounting system ...............................12M4 Analysing the financial problems .................................................................................15CONCLUSION .............................................................................................................................15REFERENCES .............................................................................................................................16
INTRODUCTIONManagement accounting means a concept which means the process of preparing reportand accounts that are responsible to provide accurate and timely financial and statisticalinformation that are required by the managers to make day to day and short term decisions.Management accounting plays an important role in organization because it generates monthly orweekly reports for an organization. Management accountant of company is responsible tocomply all the rules regarding accounting systems (Financial information and decision making,2016). There are different types of management accounting systems. Also, different methodsused for management accounting reporting which has been used by company. Concept ofbudgetary control is also discussed in the report. There are various advantages and disadvantagesof budgetary control. a good management system involves a responsibility to manage a widevariety of critical management accounting information using management accounting system andtechniques such as cost volume profit analysis, marginal costing and absorption costing toproduce relevant management report for informed decision making. Management accountingtechniques should be adopted with effective knowledge and analysis. Management accountinghas functions like; budgetary control, performance indicators and variances. also, there aredifferent advantages and disadvantages of budgetary control.TASK 1 P1 Explain management accounting and its typesAdministration bookkeeping is a term which implies it is a calling that includescooperating in administration basic leadership, conceiving arranging and executionadministration frameworks and furthermore giving aptitude in money related revealing andcontrol to help administration in the detailing and usage of an association's procedure. It stretchesout to 3 essential regions: Strategic management: Vital administration in this, it is mindful to propel the part of theadministration bookkeeper as a vital accomplice in the association (Hansen and Otley, 2003). Performance management: Execution administration it includes to build up the act ofbasic leadership of business and furthermore deals with the execution of the association.
Risk management: Hazard administration structure for rehearses and furthermore itdistinguishes, measures, oversees and report dangers to the accomplishment of the targets of anassociation. The individual who is in charge of readiness and introduction of budgetary and other choicearranged data in such an approach to help administration in plan of strategies is known asadministration bookkeeper. Administration bookkeeping is in charge of giving point by point anddisaggregated data about items, singular exercises, divisions, plants, operations and errands. itdoesn't centers around the organization all in all. Administration bookkeeping is in charge ofadministration of the business group and furthermore report connections and obligation to thecompany's back association. There are diverse sorts of administrative bookkeeping frameworksthat are utilized by the organization in particular; Cost accounting system: It is a structure utilized by organizations to gauge thecost of their items for benefit examination, stock assessment and cost control. As,assessing the exact expenses of items is basic for gainful operations,so a firmshould think about which results of the organization are productive for and whichones are not (Harris and Mongiello, 2012). It can be just discovered when it hasthe right cost has been evaluated of the item. This is critical kind of administration bookkeeping framework since cost bookkeepingframework encourages the organization to gauge the end estimation of materials stock, work inadvance and completed products.This is important type of management accounting system because cost accounting systemhelps the company to estimate the closing value of materials inventory, work in progress andfinished goods. ▪Inventory management system – it is the continuous procedure of moving partsand items into and out of an organization's areas. Administration of organizationsdeals with their stock once a day as they put in new requests for items requestedby clients and ship requests to the clients. It is important for the company because the company, for solving an issue of proper inventorymanagement. The companies turned to software that can help them keep tracking regarding alltheir inventory, orders, vendors and more. All inventory are compiled in the software so that itwould be easy for them to keep a eye check on their inventory.
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