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Management Accounting - Sample Assignment

   

Added on  2021-02-19

16 Pages3977 Words28 Views
MANAGEMENTACCOUNTING
Management Accounting - Sample Assignment_1
Management Accounting - Sample Assignment_2
INTRODUCTIONThe term MA is a important part of accounting which is associated to preparation ofinternal reports with help of monetary and non monetary information about companies (Quinnand Jackson, 2014). This part of accounting is very crucial for companies because it helps toorganisations in making important decisions. The role of MA is becoming important as financialaccounting. In project report, Prime furniture limited company is selected which is involved inmanufacturing process. In report different management accounting systems, techniques as wellas role of planning tools is described in an broad sense. Along with in the end part of projectreport, comparison of organisations is included to solve the financial problems. TASK 1.P1. Management accounting and essential requirement of management accounting systems.Definition of MA- The management accounting is a process of assessing business costand operation to produce internal financial reports for managers (Bennett and James, 2017). Theaim of this accounting is to helping managers in decision-making. Functions of management accounting system:Provide data- This is key function of management accounting system that provides dataincluding financial and non financial information. Modifies data- Another function of this accounting is to updating recorded information asper the changes in business activities.Analyse and interprets the data- The management accounting system, analyse andinterprets the recorded data so that managers can take crucial decisions.Mean of communication- This is a way of communication in an organisation becausewith the help of it, managers can aware about actual position of company. As well as onthe basis of it, they can communicate with employees.Financial and non financial information- The MAS contains financial and non financialinformation that become basis for preparation of internal reports (Moser, 2012).Types of accounting systems:.
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Financial accounting system- It is related to an accounting system that involves onlyfinancial information and produce financial statements. The financial accounting systemconsists different kind of rules and procedures that are required to be followed. Such aspreparation of financial statements at the end of an accounting period. As well as it isessential for companies to conduct auditing of prepared financial statements so thataccuracy can be evaluated. For example in Prime furniture limited company, theyproduce various financial statements(balance sheet, P&L account) as accordance toaccounting rules and procedures.Cost accounting system- It includes information for cost of various activities. It is mainlycategorised into two parts that are product costing and activity based costing( Spraakman, Askarany and Akroyd, 2015). Like in selected furniture company, theyestimate and calculate cost of their manufactured products as well as compute eachactivities' cost separatelyMAS- As per the above description of management accounting system, it is helpful fordecision-making, controlling activities as well as in investment management. Like inPrime furniture limited they use it in process of further decision-making on the basis ofprepared reports. Tax accounting- This accounting can be defined as an accounting that contains variouskind of rules which must be followed by companies during preparation of tax returns.There are various kind of taxations rules and standards for individuals, partnerships,corporations. Along with, it contains Her majesty's revenue and goods service tax forthose companies who computes tax returns. Like in Prime furniture limited, they use it atend of year when they need to calculate total payable tax to UK government.P2. Different methods of management accounting reporting.MA reports:Cost accounting report- Under this report, information related to direct material cost,labour cost, indirect cost is included. It is prepared on the basis of total financialtransactions done for their operations and activities for a specific time. It helps tocompanies for future cost estimation. For example in above prime furniture limited
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