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Various types of accounting information techniques for management accounting reporting system

   

Added on  2020-10-22

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Management Accounting
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TABLE OF CONTENTSTable of Contents.............................................................................................................................2INTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Concept of management accounting and associated requirement of various types ofsystems...................................................................................................................................1P2: Different methods used for management accounting reporting.......................................3M1: Benefits of using management accounting system.........................................................4D1: Critical evaluation of accounting reporting system.........................................................5TASK 2............................................................................................................................................5P3: Various types of costing method which are used to calculated net profit for the company................................................................................................................................................5M2: Analysing accounting information techniques...............................................................7D2: Critical evaluation of using of costing method................................................................7TASK 3............................................................................................................................................8P4: Various types of planning tools which are uses for the purpose of controlling budgets.8M3: Evaluation of using planning tools.................................................................................9D3: Critically analyse the financial issue...............................................................................9TASK 4..........................................................................................................................................10P5: Comparison of using management accounting is order to overcome financial issues...10M4: Analysis of various financial problems........................................................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
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INTRODUCTIONNowadays, it has been huge issues that management is not able to analyse their financialtransaction in proper manner. They want an effective system which can provide them bettertechniques to record all their financial transactions into their respective format in more rightways. Management accounting systems are considering that kind of tool and techniques whichcan be useful for them. As the main aim of managers to attain maximum return by the help of allessential resources of the company. Management accounting is utmost important aspects for anorganisation like “Rowlinson Knitwear” in present time. This project is all about discussingcrucial objects like types of accounting systems as well as reporting methods those are useful forthe company in planning their business operations. Apart from this, use of different costingmethod can be vital for calculating net incomes generated by the company during the accountingperiod (Gond and et. al., 2012). However, various ways in which planning tools can be utilisingin controlling budgets of the company. Likewise, effective measure to deal with various types offinancial issues those are faced by various organisation in their everyday operations.TASK 1P1: Concept of management accounting and associated requirement of various types of systemsIn current era, business atmosphere and their related wants to be track overallperformance information that goes beyond the cost related data those are related with historicalledger concepts. These are entirely relying on old accounting system and so called traditionalfinancial accounting information. Effective accounting is associated with as responsibility toconcern managers to manage ledger variety of crucial management accounting data with the helpof accounting techniques. In more common manner, managerial accounting is said to be utmostimportant process for searching, evaluating and recording of financial information so to internalmanagement which can be use it for future planning and decision making (Abdel-Kader, 2011).The primary objective of inside managerial accounting system is to deliver data to managers sothey can be sufficient enough to make better decision in coming period of time. The motive isnot to be associated with external demands. Just like that of bankers, while rather to collectvaluable information which will be further use to manage and organise business in better ways.Financial accounting data is being taken into account for effective decision making throughexternal users. Like investors and outside parties. This is also reliable aspects of preparingmanagement report and statistical data to managers to make mid and short term decision1
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regarding proper utilisation of resources those are being use during the time of productionprocess.As per the IMA (Institute of management accountants): Management accounting issaid to be profession that consists of partnering in effective decision making, diversified planningand performance management system and guide expertise about financial reporting and assistdepartment in formulation of correction actions those are beneficial for an organisation in longerrun. Importance of using management accounting system:There are various crucial aspects those are more reliable for making better decisions incoming period of time. Some of them are:Enhance productivity: Every managers uses management accounting to make sure thatall data recorded into their statements are sufficient enough to attain more suitableoutcomes in near future (Bennett, Schaltegger and Zvezdov, 2011). This will assist themto attain maximum profit by selling maximum products to their customers.Increase efficiency in forecasting: In order to make planning for the future, managersalways tried to make crucial decisions those are effective enough for the company inlonger run. Rowlinson Knitwear is always tried to enhance their business growth byeffective decision making.Types of management accounting system: Cost accounting system: As per this type of accounting which included normalhistorical costing that are consider basis of cost system, and job costing as accumulationmethod. It is considering more effective process costing that are used by department,operations manager or other concern. It is known as internal reporting system for anorganisation in respect to own management for effective decision making. There arevarious types of cost which will be lead to control the additional cost for the company.Such as standard, normal and actual cost incurred during the production of product andservices.Inventory management system: Inventory is considering as overall quantity of productsthat are owned and stored by Rowlinson Knitwear that is intended for resale or keep asraw material and element used in developing products that are produce by the company.The most valuable strategy is being used by mentioned company is Just in time to2
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