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Managing management accounting accounting in Nisa

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Added on  2020-09-08

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MANAGEMENT ACCOUNTING INTRODUCTION 1 TASK 11 P1 Different types of MA and System 1 P2 Various method to manage management reporting accounts 3 TASK 25 P3 Income statement for Nisa using marginal and absorption costs of management accounting techniques 5 TASK 37 P4 Various tools of planning used to control the budget 7 TASK 410 P5 How Nisa is adopting management accounting systems 10 Conclusion 12 REFERENCES 14 INTRODUCTION Management accounting is very crucial and important for the business management to keep

Managing management accounting accounting in Nisa

   Added on 2020-09-08

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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Different types of MA and System...................................................................................1P2 Various method to manage management reporting accounts............................................3TASK 2............................................................................................................................................5P3 Income statement for Nisa using marginal and absorption costs of management accountingtechniques...............................................................................................................................5TASK 3............................................................................................................................................7P4 Various tools of planning used to control the budget........................................................7TASK 4..........................................................................................................................................10P5 How Nisa is adopting management accounting systems................................................10Conclusion.....................................................................................................................................12REFERENCES..............................................................................................................................14
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INTRODUCTIONManagement accounting is very crucial and important for the business management tokeep their financial and costs problems away and improve the business operations effectively.The introduction includes the essential requirements of management accounting and differenttypes systems for management accounting for Nisa organisation. The different methods formanagement accounting reporting is also included. The income statement of Nisa by usingappropriate cost techniques in terms of marginal and absorption costs to calculate the net income.The report also covers the various planning tools to control the budget with their advantages anddisadvantages effectively and how these control can manage the financial problems within Nisafirm. Finally, the financial problems and their solution with effective use of managementaccountant skills and characteristic is included.TASK 1P1 Different types of MA and SystemMANAGEMENT ACCOUNTINGManagement accounting is also known as cost accounting and managerial accounting. Itis a process used for analysing business operations and costs to prepare records, internal financialreports and accounts to aid managers, decision making process to accomplish organisation goals.In simple words, it is the act of preparing costing and financial data and translating it to usefulinformation for management officers within Nisa firm. Management accounting also helps toachieve better planning and control over the firm. It is useful for all kind of firms including soleproprietorships, government and non profit organisations. It is a technique, which is focusedupon effective use of business resource to help and assist managers towards task, which enhanceboth customers and shareholders values effectively (Armstrong, 2014).MANAGEMENT ACCOUNTING SYSTEMSManagement accounting system produce the useful information required by managers tomanage and use the business resources for creating value for the organisation Nisa. It is animportant part of wider management information system of a business. It provides relevantinformation to satisfy the needs of management in terms of short and long term decision-making.Management accounting includes the costs of producing services and goods, information tocontrol operations and planning as well as measuring performance.1
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Cost accounting system: Cost accounting system estimates and evaluate the cost ofservices and goods as well as the cost of business units and resources, such asdepartment. It provides relevant and important cost data to the managers, which helpthem to control the business operation and make strategies and plans for the future withinNisa firm effectively and efficiently. Cost accounting system is generally used inorganisations such as manufacturers, retailers, wholesalers, sole proprietorships andgovernment departments. Benefits:Cost accounting system determines the cost of products and services which helpmanagers to take marketing decisions (Bouten, and Hoozée, 2013).It also helps to determine the selling price of a product effectively.Cost accounting system analyse the business profitability and meets competition. Inventory management system: Inventory is a stock of any resource or product which isused in the business include work which is in progress, raw material and finishedproducts etc. Inventory management system is a set of plans and policies which manageand control the monitor levels of inventory and also determines what stock should bereplenished, what levels should be managed and maintained and quantity whichorganisation should order effectively and efficiently. Inventory cost is also known ascarrying and holding cost which includes storage costs such as insurance, facilities,utilities and taxes and capital costs includes opportunity costs. Ordering and setup costsincludes purchase, transportation and shortage costs. Here are some types inventory:Raw materials: Raw materials is the first step of making any product and supplied byvendors that do not include any labour by the business for receiving the items.Finished goods: Finished goods are those products which is completed and ready to sellbut still in the possession of the business which manufactured them.Work in process: In this process, products which have been partially processed but stillincomplete are included.Benefits:Protection against uncertainties, shortage of raw material.Support strategic plan and take advantage of economy scale2
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