Management Accounting System Features - Doc

Management Accounting

Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
LO 1.....................................................................................................................................................3
P1 Management accounting system and essential features of different management
accounting systems.......................................................................................................................3
P2 different methods used for management accounting..............................................................5
Benefits of management accounting system................................................................................6
LO 2.....................................................................................................................................................7
P3 Calculation..............................................................................................................................7
LO 3....................................................................................................................................................12
P4 Different planning tools of budgetary control system with their advantages and
disadvantages.............................................................................................................................12
LO4.....................................................................................................................................................15
P5 organization adopting management accounting system to respond financial problems.......15
CONCLUSION..................................................................................................................................18
REFERENCES...................................................................................................................................19

INTRODUCTION
Management accounting is technique that helps managers in formulation of different
strategies and plans for the company so that the overall financial position and financial
performance of the company could be improved. This system provides appropriate
information to managers regarding financial position and performance of the company
through which they formulated their plans for the company Gartner is UK based medium
sized financial consultancy firm. It was founded in the year 1979. In the present study, there
is report of trainee of the country that shows meaning of management accounting and their
essential features for the company along with different methods of management accounting
reporting. Further it shows, different budgetary control tools that helps managers in their
planning function. It also has a practical part that shows preparation of income statement on
the basis of different techniques of management accounting and statement showing inventory
held by company by using different methods. At the end of report, it explains different
management accounting systems that can be used by different organisations in order to
improve its efficiency of responding to different financial uncertainties of the company.
MAIN BODY
LO 1
P1 Management accounting system and essential features of different management
accounting systems
Management accounting
Management accounting term refers to the advice and financial data of the company
which has been using development of the organization. It has been using the provisions for all
the accounting information for identifying the better information. It is basically a profession
which has been involved the partnering the management decisions making process, system of
performance management and also the devising planning process (Kaplan and
Atkinson, 2015). It generally provides the experts for making the financial reporting & also
controlling for assisting the management for the implementation and formulation of the
Gartner strategy.
Essential requirements of different management accounting
Management accounting system

It is generally a process that includes the partnering in with all the situations of the
organization. It is a procedure of identifying, analysing, communicating and interpreting all
the financial information which is helpful in achieving the goals and objectives.
Cost-accounting system
The term cost accounting refers to the framework which has been applied by all the
corporation to identify the approximate cost to producing the profitability analysis, cost
control, valuation of inventory. This system has been performed the allocation of the cost
based on performance and also on activities (Otley, 2016).
Job costing system
The term job costing relates to the allocation of the manufacturing cost where the
individual items and batches. It generally applied on the processed goods which is different
from another. It includes all the practices which has been accumulating the data of the cost
that is related to the specific services and production of the job in Gartner. This job costing
system has been applied when management has to track the different types of direct expenses.
It assesses all the amount and cost which has been included in the construction of the job.
Price-optimisation system
The system of the price optimization is generally an application where all the
mathematical analysis for the corporation has been determined the consumers react on the
various price process for its products and services. Basically, it has been applied for analysing
the pricing strategy that the Gartner determine the best way to full fill the goals for
maximizing all the operating profits (Schaltegger and Burritt, 2017).
Inventory management system
Inventory management system refers to the method of overseeing and controlling the use,
storage of all components where the corporation has been applied for the manufacturing of
the goods which is on sale. It oversees the practice of all the quality of the finished goods.
Inventory management system is a key element of the business where it is tied of producing
the sales of goods and services.
Difference between Management Accounting and Financial Accounting
Basis Management Accounting Financial Accounting
Meaning It is a term which is related with the
process of providing important as
well as crucial information of
managerial needs to the management
of the company in making decision
Is associated with recording,
summarizing, analysing and
preparation of financial reports
on the basis of financial
transactions for assisting its end