Management accounting system | Assignment
Added on 2021-02-19
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Management accounting
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1.................................................................................................................................................3P2.................................................................................................................................................4M1................................................................................................................................................4D1.................................................................................................................................................5TASK 2............................................................................................................................................5P3.................................................................................................................................................5M2................................................................................................................................................9D2.................................................................................................................................................9TASK 3............................................................................................................................................9P4.................................................................................................................................................9M3..............................................................................................................................................13TASK 4..........................................................................................................................................13P5...............................................................................................................................................13M4..............................................................................................................................................15D3. .............................................................................................................................................15CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16
INTRODUCTIONManagement accounting (MA) is defined as the particular process which includes thecertain process such as identifying, analysing, processing, measuring the financial data andinformation in order to make the futuristic decision by the management of the businessorganisation. It manages the financial performance of the by setting up new objects and plan inthe business. For the better understanding of this particular topic company continental clothingLtd. is selected that is engaged in fabrication of the clothing at the various location of UK. Thereports content the various topic such as management accounting system (MAS), reporting,different problem established in the business, various budgeting techniques and control that usedby business as planning tools (Schaltegger, Burritt, and Petersen, 2017).TASK 1.P1Management accounting includes the different kind of accounting tools that devising theplan and object of the business in respect to providing the expertise in the financial statement andreporting and assist the manager regarding formulation the business strategies and objectives andimplement it into business for earn more profit in future. Here, the different kind of managementaccounting are mentioned as under:Stock management system: It is also called inventory method that related with thehandle the overall cost of the product at processing unit of business. It manages the inflow andoutflow of the stock at warehouses. The company continental clothing Ltd is using this methodto ensure the stock at the warehouse. Cost accounting system: This is the system that is defined as the overall cost that incurat the different level of the manufacturing the goods. It consists the the total cost from stage ofraw material to finished goods. Continental clothing uses this method in the business to know theoverall cost at the time of manufacture. Price optimisation system (POS)- In the method, business sets the price to its productsat the certain level. It is totally based on the cost of production and the review of the customers.In respect to selected company, management are applying particular system to set the amount toits products.
Job costing system- This is the method that is defined as the transfer the cost to itsparticular products and job. It measure the cost incurred from direct material, labour andoverhead. Company is using this tool to make effective decision in the business regardingallocation of the cost to its projects and job. P2These reports are the basic statement of the business that represent the monetary item inthe statement to its management of the company. The main object behind it to provides all thedetail regarding the business to make the internal planning and policy. The different kind ofreports are as follows: Budget reports: This is the reports that is defined as the statements of the future incomeand expenditure at the different level of manufacturing. This report play a major role in analysingthe standard data with actual performance. Continental clothing company is using this tool ofMAR in the business to identify the cost at various level of the production (Santini, 2013). Account receivable ageing report- In this report, it show the total amount due with thedebtors. This reports is only for those business which deal in the credit to its customers. Themanagement creates this reports to know the balance amount with the customers. In the companycontinental clothing business uses this reports to know the credit business transaction withcustomer. Cost accounting report- This is the report that is accompanying the informationregarding the overall cost of the manufacturing the goods and product. It covers the various costof production such as direct material, certain overhead like fix and variable cost. The company,continental clothing Ltd is making this particular reports in the business to measure theincurring in their operation. Performance report- This reports is all about the measuring the specified businessactivities and operation in concern with the business performance and employee contributiontowards the business organisation. Company is using this report to make analysation in thebusiness regards the whole performance of the business. M1Every management system have its own role and function in the business that play amajor role in handling the business activities. Here, some of the benefit are as under :
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