P1: Discussion about management accounting and its essential requirement

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Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Discussion about management accounting and its essential requirement............................1P2: Different types of accounting reporting methods.................................................................3M1: Various crucial benefits of using management accounting system.....................................5D1: Critical evaluation of various reporting method and accounting system integration...........6TASK 2............................................................................................................................................6P3: Different types of costing methods used for calculating net profit.......................................6M2: Different types of accounting tools and techniques............................................................8D2: Analysis of data collected from income statement..............................................................9TASK 3............................................................................................................................................9P4: Merits and demerit of using planning tools used in budgetary control................................9M3: Analysis of various planning tool and its application for forecasting...............................11D3: Evaluation of planning tools for responding to financial issues........................................11TASK 4..........................................................................................................................................11P5: Comparison with other organisation to overcome financial issues....................................11M4: Analysis of planning tools to deal with financial issues....................................................12CONCLUSION..............................................................................................................................12REFRENCES.................................................................................................................................13
INTRODUCTIONManagement accounting play an important role in every organisation where manager usethe provision regarding accounting information in order to attain predetermined goals orobjectives. In other words, management accounting may be considered as profession in whichincluded management decision making, performance management system and devising planningwhich support in providing financial reports (Amidu, and Effah, 2011). These are beneficial informulating as well as implementing organisational strategies to accomplish particular goals.This report is based on Azio corporation which deals in manufacturing keyboards and otherelectronic peripherals. It will demonstrate the management accounting system and apply a rangeof management techniques for the purpose of maintaining accounts of an organisation. Thisassignment will explain the uses of planning tools for appropriate management accounting.There will be comparison of different ways in which company can use the managementaccounting for responding to various financial problems as well.TASK 1P1: Discussion about management accounting and its essential requirementIn the present scenario, accounts management and its maintenances are must be requiredfor every business organisation for achieving predefined goals and get success. Azio is smallbusiness that deals in manufacturing of keyboards and other computer electronic items in themarket place. The manager of Azio corporation consider various data and informations so thatthey can organise business activities and allocate resources as per requirements. Managementaccounting may be defined as the presentation of financial data in an appropriate manner foroperating business in right direction(Abor, 2011). Management generally use these kinds ofsystems to manage the entire business operations and make better decision to generate moreprofits as well. In this included different accounting methods, tools or techniques, and systemswhich associated with ability, skills, knowledge and assessment of management activities. Theseare essential in generating higher profits and revenues with the help of utilising availableresources. Accounting concern with set of procedure in which identify, measures and evaluatethe economic data for making better decisions regarding financial resources and organisation'sposition.1
Definition:Management accounting may be defined as the branch of accounts which arebeneficial in providing specific informations to the top level management of organisation. It ishelpful in performing various business operations and functions including planning, organisingand controlling in an appropriate manner.Importance of using Management Accounting:Helpful in producing plan:In the organisation, planning play a crucial role in gettingsuccess. It generally used for accomplishing best possible outcomes or goals that set bythe Azio company within defined time period.Better decision making:Management accounting system is useful in making better orfavourable decision that facilitate in generating higher profits or revenues in adequatemanner(Carlsson-Wall, 2011). Company can achieve best possible outcomes in variouscritical situations by effective decisions.Determination of future goals:This is essential in attaining future objectives asmanagement accounting support in formulation of particular goals and create path orroute to accomplish it with effective way.Types of management accounting system:Cost accounting system:It is the best procedure that company can undertake for thepurpose of recording, categorising, allocating and evaluating the various components forbetter course of action. This system has significant role in the department for controllingtheir costs which are additional and improve production process in an efficient manner.Therefore, Azio required to undertake these system so that they can produce effectivekeyboards, computer electronics items and various components in an adequate manner.There are defined different types of costing methods such as normal, actual and standardcosting and these are beneficial for organisation in managing expenses with effectiveway.Inventory management system:It is defined as the supervision where considered all non-capitalised stock items within firm. In this described the procedure by which products areto be flowed from producers to warehouses(Kraus, and Lind, 2015). It is helpful inmanaging the inventory products and store appropriate goods in well manner. In thisincluded various types of methods such as LIFO and FIFO and AVCO etc. which areeffective in maintaining stock of Azio organisation.2
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