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Management Accounting Sample Assignment

Added on - 29 Dec 2020

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Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Explain Management Accounting and different type of management accounting system....1P2 Different methods of management accounting reports..........................................................3M1 Evaluate the benefit of management accounting system......................................................4D1 How management accounting system or management accounting report integrated witheach other.....................................................................................................................................5TASK 2............................................................................................................................................5P3 Various costing techniques to prepare an income statement................................................5M2 Range of management accounting techniques......................................................................9D2 Financial reports which applies to interpret many business activities..................................9TASK 3..........................................................................................................................................10P4 Various kind of planning tool with its advantages and disadvantage..................................10M3 Analyse different planning tools and their applications......................................................12TASK 4..........................................................................................................................................12P5 Adapting of management accounting systems to respond to financial problems................12Comparison between TESCO and LOREAL............................................................................14M4 Management accounting response to financial problem can lead organisations tosustainable success.....................................................................................................................14D3 Various Planning tool to resolve financial problems...........................................................15CONCLUSION..............................................................................................................................15REFERENCES................................................................................................................................1
INTRODUCTIONManagement accounting is process of analysing the cost of business and prepare financialstatements for the operational work. It include various reports, financial transaction which helpthe manager to take decision that further help to achieve their business objectives & goals(Sisaye and Birnberg, 2012). Management accounting used for the internal purpose and it is notregulated by law or it helps the manager to take internal or important decision. To be understandbetter, Equilibrium Assets Management (EAM) is charted wealth management company and it'sheadquarter in Wilmslow. This company established in the year 1995 and they provide experts totheir client regarding wealth and investment management. This report include the managementaccounting, it's requirement or different types of management accounting system and themethods used by the manager for preparing management accounting report. Along with this, itincludes approaches of cost analysis, planning tools and other accounting system with help theorganisation to solve their financial problems.TASK 1P1 Explain Management Accounting and different type of management accounting systemManagement accounting used by the manager of the company for the identification oftransaction, recording and analysis which help the organisation to take effective decision inrespect of business goal & objectives. It helps the manager to collect financial information tobuild different policies which help the management to manage their day to activity in theEquilibrium Assets Management organisation.Difference between management accounting and financial accounting.Management accountingFinancial accountingIt is a part of management level and seniorlevel.It is one of the mandatory system that isrequired to adhere by every organisation forbetter financial management.It assist managers in assessing the requirementsin decision-making.There are rules related to financial reportingand accounting principles used in effectivemanner.It is not mandatory to enterprises to implymanagement accounting system with in theIt is essential for organisations to maintain thefinancial records as income statement, balance1
organisation.sheet and cash flow statement.Different Type of management accounting system:Management accounting system help the organisation to perform their duty effectively inall department such as It, Finance, Marketing etc. Basically it is useful for the internal analysisby use of financial information. It is focused on preparing strategies regarding operationalfunctions, cost of product & services or in decision making process (Sedevich Fons, 2012).There are some different types of management accounting system which adopt by the manager ofEquilibrium Assets Management company that further helps in decision making process.Inventory management system:It is a software which help to track inventory level or itis very complex system to manage their inventory in the organisation but it help the business toregularly track. It is beneficial for the medium or large size company. Manager of EAMCompany follow this system to manage their products through regular tracking of their supplychain. This system help the business to identify the availability of their financial products. So itis beneficial for the manager of EAM company to follow inventory management system orsoftware. For example: Company can manage their products such as investment, retirement, tax,intergeneration planning etc. Manager of EAM follow this system to manage their productinformation and provide their clients when it required. Inventory management system required tomanage the whole service products through this software which provide the accurate informationregarding this.Cost accounting system:It is a costing framework which help the organisation toidentify the cost of each unit or it is beneficial or the business of not. Cost accounting systemhelps in inventory valuation, profitability and cost analysis. It help the manager to identify theaccurate cost of product which further helpful for the decision making process or develop variousstrategies. Manager of EAM company follow this cost accounting system for controlling cost andincrease the profit margin (Schneider, 2015). For example: Manager prepare a retirement policyfor their clients so they fix the monthly premium of that particular plan and identify that whetherit is beneficial or not for the both parties. Manager identify that cost of policy can recover frompremium amount paid by the customer. Cost accounting system required to identify the product& service cost which further helps in fixing product price of their financial services.2
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