logo

Management Accounting - Ever Joy Enterprises

14 Pages4700 Words327 Views
   

Added on  2020-10-04

Management Accounting - Ever Joy Enterprises

   Added on 2020-10-04

ShareRelated Documents
Management Accounting
Management Accounting - Ever Joy Enterprises_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting system and its types.......................................................................1P2 Methods used for management accounting reporting............................................................3M1 Benefits of management accounting systems.......................................................................4D1 Management accounting system and its reporting is related to organisational process........4TASK 2............................................................................................................................................5P3 Calculation of cost using appropriate techniques..................................................................5M2 Application of management accounting techniques.............................................................6D2 Data interpretation.................................................................................................................7TASK 3............................................................................................................................................7P4 Advantages and disadvantages of different planning tools used for budgetary control........7M3 Use of planning tools in preparing and forecasting budgets................................................8P5 Adopting of management accounting system to respond financial problems.......................9M4 Use of management accounting system to deal financial problems...................................10D3 Application of planning tools to deal financial problems...................................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
Management Accounting - Ever Joy Enterprises_2
INTRODUCTIONManagement accounting is a techniques which is used by manages of an organisation togather and formulate accounting information in an appropriate manner so that internalstakeholders may analyse actual situation of business (Management accounting, 2018). This mayalso guide managers, owner and other concerned persons of company to make strategicdecisions. In management accounting various reports are generated in order to keep track recordof each activity of enterprise. Company taken in this report is Ever Joy Enterprises (UK) whichis a client of an accountancy firm.This report consists various informations regarding management accounting system,methods of its reporting and benefits, application of costing techniques and advantages anddisadvantages of different planning tools that are used in budgetary control. The way in whichorganisations are adapting management accounting system to respond financial problems in alsodiscussed under this report.TASK 1P1 Management accounting system and its typesManagement accounting: It is process of monitoring and controlling managerialinformations of business so that all the operations can be controlled by managers. In Ever JoyEnterprises (UK) management accounting is used to analyse business performance in order tomake strategic decisions.Difference between management and financial accounting:BasisManagement accountingFinancial accountingStakeholdersReports generated undermanagement accounting arepresented to internalstakeholders only.All the statements generatedunder financial accounting arepresented to externalstakeholders. CompulsionIt is not compulsory forcompanies to conductmanagement accounting.It is essential for theorganisations to conductfinancial accounting every.Monetary or non monetaryinformationsAll the monetary and nonmonetary informations areOnly monetary informationsare recorded in the financial1
Management Accounting - Ever Joy Enterprises_3
recorded in the reports ofmanagement accounting.statements.Legal requirementAccording to the lawmanagement accounting is notrequire for the company.It is required for the companybecause it helps to identify thatorganisation is performing wellor not.Time periodIt is based on existent andprogressive looking period. Financial accounting is basedhistorical records.Management accounting system:It is a system which is used by organisations in orderto record and analyse all the valuable information to analyse organisational performance. In EverJoy Enterprises (UK) different management accounting systems are followed (Banerjee, 2012).These systems are explained below:Cost accounting systems: This system is mainly used by manufacturing companies torecord all the costs involved in the production activities. In Ever Joy Enterprises (UK) thissystem is used by the managers to record cost of their activities that are performed by theiremployees. It is also used to analyse cost of equipments, labour and other overheads. This systemis very important for company as it can help to determine actual costs. It is mainly used todetermine direct costs and standards costing is an example of cost accounting system. Both ofthem are explained below:Direct cost: Such type of cost is directly related to the product or service provided byorganisation. In Ever Joy Enterprises (UK) various direct costs are recorded by managersthese costs are labour, commissions, rendering expenses etc.Standard costing: It is a costing method which is used to analyse the variances betweenactual and budgeted costs. In Ever Joy Enterprises (UK) this method is used to analysedifferences between standard and real cost which has been bear by the organisation.For example, if Ever Joy Enterprises (UK) want to analyse cost of service which isprovided t each employee than cost accounting system is very beneficial for the same purposebecause it helps to analyse exact cost.Inventory management system: It is used by various companies in order to keep arecord of stock which is used to perform all the operational activities (Bodnar and Hopwood,2012). In Ever Joy this system in implemented to analyse that what resources and equipments are2
Management Accounting - Ever Joy Enterprises_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Management Accounting Technique - Doc
|19
|5292
|120

Management Accounting - Ever Joy Enterprises Assignment
|17
|5502
|466

(PDF) Managerial Accounting | Assignment
|17
|5443
|144

Management Accounting in Ever Joy Enterprises
|17
|4757
|225

Introduction to Management Accounting - Assignment
|16
|4431
|79

Financial Accounting and Management Accounting
|13
|3761
|478