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Management Accounting - Sample Assignment

   

Added on  2021-02-20

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Management Accounting

Table of ContentsINTRODUCTION................................................................................................................................3MAIN BODY.......................................................................................................................................3LO 1 .....................................................................................................................................................3P1 Meaning of Management Accounting and Different types of accounting systems....................3P 2 Different methods of accounting reports prepared by Abeam consulting Ltd ..........................5LO 2......................................................................................................................................................6P 3 Calculation of net profit or loss under Marginal costing and Absorption costing ....................6LO 3....................................................................................................................................................10P 4 Advantages and Disadvantages of Planning Tools Used for Budgetary Control.....................10P 5. Different management accounting system assisting in solving financial problem.................11REFERENCES...................................................................................................................................15

INTRODUCTIONManagement Accounting is the system where all the transactions related to the financialtransactions are analysed, summarizes and recorded in the various to prepare the financialstatements for the organisation (Chenhall, 2015). Accounting helps in recording all the monetarytransactions of the company in order to know the financial position of the organisation. AbeamConsulting is the medium sized financial consulting firm founded on 1st April, 1981. At present,company is having 5915 employees all over the world. Company is having its headquarters inTokyo, Japan. The main business of the company is management consulting, business processconsulting, IT Consulting etc. Company is having 33 countries and 65 offices all over the world.Total capital of the company is ¥6.2 Billion and net sales as per year 2019 is ¥85.8 billion. Thisreport consists of presenting the management accounting and the various methods of accountingaspects of the company. It also covers the cost accounting systems and valuation methods ofinventory and financial problems and how resolve all the problems using various techniques.MAIN BODYLO 1 P1 Meaning of Management Accounting and Different types of accounting systemsManagement Accounting is the process where the company analyses, summarizes andrecords all the transactions related to the financial transactions for preparation of financialstatements of Abeam consulting Ltd. Management Accounting is prepared for internal and externalstakeholders of the company. Financial Statements of Abeam consulting helps in taking variousdecisions for the company. They help in make trend analysis and forecasting for the companythrough the various financial statements of the company.Management Accounting systems are the systems which consists of measures and evaluatingthe financial statements of Abeam consulting Ltd. Various elements of the accounts are comparedwith each other in order to know where the extra cost has been allocated and how to eliminate theextra cost from the company (Schmid, 2019). These are systems are important to integrate withinthe organisation because the systems help the company in evaluating the financial statements ofAbeam consulting Ltd. Management Accounting covers the various other accounting such asfinancial accounting, cost accounting and managerial accounting. Origin of Management AccountingManagement Accounting was first emerged at the time of industrial revolution and rose after

the financial accounting. The two leading industries played main role in bringing managementaccounting i.e. Textile industry and railroads. These industries were having large cash receipts fromnumerous customers because of which both financial and management accounting was raised inorder to measure the efficiency of moving passengers and freight. Role of Management AccountingThe main role of management accounting is to measure and evaluate the financial statementsof Abeam Consulting Ltd. This helps in decision making for the company and also helps inelimination of extra cost of the company. The another main role of management accounting is toprepare the reports for the company which shows the financial position of Abeam consulting Ltd. Principle of Management AccountingPrinciples of Management Accounting are disclosure of financial statements withtransparency and disclosing all the facts and figures related to the financial statements of AbeamConsulting Ltd. The another principle of management accounting is to compile all the financialstatements of company as per the accounting standards (Pearce, 2016). The other two principles ofmanagement accounting are causality and analogy. Causality Principle states the relation betweenthe quantitative output and quantitative input which has been consumed to achieve the output forthe company. Analogy principle is to use the past outcomes for forecasting the future targets forAbeam consulting Ltd. It mainly focus how the user of information best uses the information offinancial statements. Different types of Management accounting systems areVarious types of management accounting system are as followsCost- accounting systemsCost Accounting systems is also called product costing system. It calculates the cost per unitobtained in production of one unit of good for Abeam consulting Ltd. These systems also obtainsthe information related to the total cost of the company and where the extra cost had been allocatedand how the cost can be eliminated within the different department where the extra cost is notbenefiting (Pearce, 2016). The system helps in preparation of cost reports related to raw materials,work I progress and finished goods. Inventory Management systemsInventory Management system is the method where all the events related to the inventoryare recorded in order to know the sales and production budget for Abeam consulting Ltd. Thesystem helps the company in managing all the transaction related to the inventory in the system so

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