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(solved) Management Accounting System: PDF

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Added on  2020-11-23

(solved) Management Accounting System: PDF

   Added on 2020-11-23

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MANAGEMENTACCOUNTING
(solved) Management Accounting System: PDF_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Management accounting and need of different types of management accounting system...1Different methods used for management accounting reporting ............................................2Benefits of management accounting system and its application in Jupiter PLC....................3Integration of management accounting system and management accounting reporting withorganisational process............................................................................................................5TASK 2............................................................................................................................................5Income statement as per absorption costing...........................................................................6Income statement on basis of marginal costing......................................................................7TASK 3............................................................................................................................................8Advantages and disadvantages of different types of planning tools in budgetary control.....8Use of different planning tools for preparing and forecasting budget....................................9TASK 4..........................................................................................................................................10Use of management accounting system for solving financial problems..............................10Management accounting assist in sustainable success by responding to financial problems11Evaluation of planning tools for solving financial problem.................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
(solved) Management Accounting System: PDF_2
INTRODUCTIONThis study is based on management accounting. Management accounting is related topresentation of various accounting information in the form of report in order to provideinformation to managers which will assist them in making various decisions. This assignmentwill include Jupiter PLC to perform different task of the study. Jupiter PLC is a medium sizedmanufacturing company. This assignment will include different types of managementaccounting systems. This study will provide different methods used for management accountingreporting. Furthermore, it will provide advantages and disadvantages of different types ofplanning tools used in budgetary control. Also, It will include management accounting systemthat assist in solving financial problems of firm.TASK 1Management accounting and need of different types of management accounting systemManagement accounting is related to providing various information of different financialdata that assist is performing various activities of the organisation. Management accountingrefers to that accounting method adopted by organisation for various decision- making in order tomaximise the profitability of the firm. This accounting method assist management in performingtheir various task relating to planning, organising, directing and controlling. Management accounting system include various internal system which are used bymanagement of the firm in order to measure the various activities of the enterprise. Managementaccounting system consist of the following :Cost – accounting system : Cost – accounting system of management accounting isused for determining the cost of products which assist in increasing the profitability offirm. Cost of the product is determined on the basis of process costing and job ordercosting. Job order costing is related to breakdown of the process in each job and thenallocating the cost for the particular job. Process costing involves breakdown of costinto each process this involves cost allocated for different department that are involvedin different process of manufacturing a product.Inventory -management system: This management accounting system is related tomanagement of inventory by supervising the flow of inventory from manufacturers towarehouses. Inventory management system helps in reducing over utilisation ofinventory in order to derive effective results by utilising the raw material in the best way1
(solved) Management Accounting System: PDF_3
to achieve higher results. Inventory management include two methods of calculatinginventory that consist of FIFO and LIFO method. FIFO method of inventory control isrelated to those cost of inventory which is the oldest among the other will be sold first.LIFO method of inventory management is related to last in first out that means thoseitems of inventory which is latest is used first and then the other products are sold.Job costing system : This system of management accounting is related to determiningthe cost of relating to particular job. This system provide information of different costassociated with particular job. This information include direct material , overhead costetc. This system assist the management in identifying the cost of each job that helps inperforming different operation of business. Jupiter PLC follow this management accounting system in order to manage differentoperation of organisation. Jupiter PLC adopted this management accounting system in order todetermine the cost of its manufacturing processes.Different methods used for management accounting reporting Management accounting reporting are those statements which are used for providinginformation to management relating to various operation of the company. This report assistmanagement in improving their various functional areas and providing appraisals to the highperforming employees to motivate them towards work. Management accounting reportingconsist of following reports : Budget report : Budget report assist in providing information about various operationsand also assist in analysing the business -performance. Budget report assist mangers inidentifying department wise performance in order to provide incentive to employees fortheir higher performance. Budget report also provide information regarding the futurefinancial wants of the firm in order to achieve the desire profitability in the future. Budgetreport are made by the management in order to identify their financial sources which willbe required to perform various activities of the organisation.Accounts receivable Aging : This report is presented in order to mange cash flowsrelating to extended credit provided by organisation to its customers. This report is usedto identify the firm collecting process in order to know about its creditability. Thesereport include the invoice columns that include the time period of credit provided by the2
(solved) Management Accounting System: PDF_4

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