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Management Accounting System and Requirements Doc

   

Added on  2020-10-22

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Management accounting
Management Accounting System and Requirements Doc_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting system and essential requirements of its types..............................1P2 Management accounting reporting and its methods..............................................................2M1 Benefits of management accounting system and application within the organisation.........4D1 Integration of management accounting system and management accounting reporting.......4TASK 2............................................................................................................................................5P3: Calculation of cost using an appropriate techniques............................................................5M2: Various types of accounting techniques..............................................................................7D2: Data interpretation................................................................................................................8TASK 3............................................................................................................................................8P4 Advantages and disadvantages of Budgetary- control planning tools...................................8M3 Analysis of different planning tools and their application for preparing and forecastingbudgets......................................................................................................................................10TASK 4..........................................................................................................................................10P5 comparison between organisations management accounting system to resolve financialproblems....................................................................................................................................10M4 Analysing financial problem that can lead organisations to sustainable success...............11D3: Evaluation of financial planning tools for responding financial issues.............................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
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INTRODUCTIONManagement accounting is the activity of preparing management reports and accountsthat provide faithful financial information. It is assistive for management to report the accountingmethods, schemes and proficiency with particular cognition and quality, to exploit profit andunderstate losses (Management Accounting, 2018). Planning tools for budgetary control arehelpful in estimating the future consequences and risk, and cater guidance to deal with the same.There are many financial problems that a company is dealing, management has to implementimpressive techniques to deal with those financial problems to strengthen company's financialperspective (Bennett, and James, 2017).R.L. Maynard Ltd. was incorporated on 22 March 1973. It is a construction anddevelopment company. The main motive of the company is to supply best service to thecustomers and encourage the customers by providing best services and by environmental friendlybehaviour. This report is based on different financial management systems, and this reportincludes various techniques of accounting, planning tools for budgetary control and solutions tothe financial problems.TASK 1P1 Management accounting system and essential requirements of its typesManagement accounting system is the technique, which is used to achieve organisationalgoals. It stipulates information to the managers to proceed financial decisions related to business.It is used in the business activities like planning, controlling, staffing, directing and reporting. Itbelongs to the insider system that R.L. Maynard Ltd. exercise to measure and assess its processesfor management of the organisation. Its elements are monetary funds, internal managementexecution report, reports of the return on investment and sales investigation.Cost accounting system – It is also known as product costing method or system, it isenforced by the firms to measure cost of the product and outcome of the cost on the productivity.A firm must have the idea of the product that product is profitable for firm or not. This system isfacilitative in calculating closing values of inventories, raw material, work in progress andfinished goods. There are two main types of cost accounting system :-1
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Job order costing – It is an action of distributing cost to a particular unit or product. Thismethod is only used when the products, produced are adequately different from eachother. This is exclusively applied in the small bulk of products that are clearly differentform the other bulk's products.Process costing – It is used in R.L. Maynard Ltd. to elaborate a method for assemblingand distributing production costs to the units produced. It assigns cost to the collectiveabstraction of a product.Inventory management system – It is an activity of moving parts and products into andextinct of the firm's location. It is used for tracking, predicting and reordering inventories in R.L.Maynard Ltd, and it covers every part of production. It is used to keep an eye on every activitythat is happing in and out of the business unit, and it helps to make better decisions andinvestments. Various inventory handler focus on various parts of the activity series in thissystem. It is principally used to keep elaborated evidence of each and every action of thefirm(Bovens, Goodin, and Schillemans, 2014).Price optimisation system – This system is used in R.L. Maynard Ltd. to find out thathow customers will react to the various values for products and services through differenttransmission. It is also used to regulate that when the firm will achieve its goals such asmaximising profits and minimising losses.Job costing system – It is competent to evidence the cost of materials that are dividedduring instruction of the job in R.L. Maynard Ltd. It concerns the procedure of collecting contentabout the cost related to a specific production or job, and this content is needed in state to refercost substance to a customer under an agreement where costs are compensated.P2 Management accounting reporting and its methodsManagement accounting reports are such form of reports that have flooded information ofthe business performance. These reports are prepared to yield a holistic position of the businesseconomics. These reports provide information to lean cost, reinforce employees for the foremostpresentation, spend in such securities that return to the highest degree, cut weaken product linesetc. These reports should be prepared accurately because many important decisions reckon onthese reports. There are four types of management account reporting, these are as follows :-Budget report – These reports are generated as a whole for organisation and are veryimportant in analysing its performance. R.L. Maynard Ltd. creates an entire budget to interpret2
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