Management Accounting Assignment - “Unicorn Grocery Ltd”
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Added on 2020-10-22
Management Accounting Assignment - “Unicorn Grocery Ltd”
Added on 2020-10-22
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Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: About management accounting and their essential requirement......................................1P2: Different types of accounting reporting system...............................................................3M1. Evaluating benefits of accounting system.......................................................................5D1. Critical evaluation of management accounting systems and reporting...........................5TASK 2............................................................................................................................................6P3: Explain Marginal and Absorption costing methods.........................................................6M2: Analysis of various accounting techniques.....................................................................8D2: Interpretation..................................................................................................................8TASK 3............................................................................................................................................8P4: Advantage and disadvantage of using types of planning tools for budgetary control.....8M3: Application of the planning tools for preparing, forecasting and analysing budgets...11TASK 4..........................................................................................................................................12P5: Comparison with other companies regarding respond to financial issues.....................12M4: Analysis of management accounting techniques..........................................................13D3: Evaluation to deal with planning tools used to resolve financial issues........................13CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................15
INTRODUCTIONManagement includes interlocking operation of creating corporate policy and overallplanning, organising and directing an organisation resources in respect to attain its aims andobjectives in more quick time. While accounting is systematic process of summarising, recordingfinancial transaction that are done by the company within an organisation. Overall recording andformulation of policies and plans are implemented in respect to get more benefits in comingperiod of time. The role of manager in “Unicorn Grocery Ltd” is to organise all essentialrequirements those are needed to increase growth and stability of the company. This project module aims to focus on effective utilisation of various types of accountingsystems and reporting. Apart from this, different types of costing those are reliable forecalculation net profit and loss of the company. Likewise, some planning tools for budgetarycontrol are discussed under this report (Tappura and et. al., 2015). At the end of this report,comparison with other companies those are adopting management accounting systems to respondto financial issues are mentioned properly.TASK 1P1: About management accounting and their essential requirement In current era, it has been seen that managers are playing vital role in formulating varioussystems those are helpful in recording various financial and non-financial transaction those aredone within an accounting period of time. This will assist manager of Unicorn Grocery to makeeffective decision those are crucial for future planning and sustainability of the company. Inpresent business environment, business wants to overall all performance data that goes beyond asper the basis of cost based information. Better management accounting consists of vital role andresponsibility to managers at a wide scale to get more reliable and effective outcomes in comingperiod of time (Groot and Selto, 2013). A good accounting consists to a responsibility to managea large range of critical management data and their techniques such as cost volume analysis,budgetary control and cash budgets etc. It is a provision that influence effective decision makingand provide expertise in areas of financial reporting during formulation and development oforganisational strategies. Mainly, it seems to be the effective activity of preparing andimplementing financial data regarding all that information those are collected with the help offinancial accounting. 1
Definition: Management accounting is the process of formulating management reportsand account that used to provide reliable and timely financial and numerical data by themanagers to make every day and short-term decisions. It used to generate monthly or weeklyreports for an organisations internal people such as department managers and other higherauthorities.According to J. Batty: Management accounting is known as vital term which used todescribe the accounting techniques with special knowledge and ability in their task of increasingprofit or loss period.Types of Management accounting systemCost accounting system: It is a vital system for an organisation which is being used forthe determining the forecasted cost for their product, profitability evaluation, stockvaluation and to control overall additional cost. In order to get profitable operation innear future, they need to make proper estimation of cost that are used during productionof product and services. There are various types of cost systems which are taken intoaccount while analysing cost for a product. Such as standard costing, normal and actualcosting (Schäffer, 2013).Inventory management system: It is said to be valuable quantity of product owned andkept by an organisation that is intended either for resale or as new material and elementsthat is being used to producing product for the company. There is an effective systemwhich is being used in stock management is Just-in-time (JIT). It is the strategy ofcompanies that employ to enhance overall efficiency and reduce waste through receivingproducts only as they are required in manufacturing process. This seems to be helpful forproducers to estimate demand in reliable manner.Price optimisation system: It seems to be utmost important strategies which a company,after collecting information from various customer regarding the products they makecertain decision. It is uses as numerical analysis in respect to analyse how clients willreact to other prices for their products and services. It is used to estimate the prices that acompany used to examine would be best suitable for their objectives such as increasingoperational gains during the time. This seems to be formal methods to invent pricingstructure that optimise goal such as earning or customer procurement. 2
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