Management Accounting System : Assignment

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
P1 Management accounting and requirement of various types of management accounting
system..........................................................................................................................................1
P2 Various methods for management accounting reporting.......................................................3
P3 Calculation of cost for preparing a income statement for a company...................................4
PART B............................................................................................................................................7
P4 Advantages and disadvantages of different types of planning tool.......................................7
P5 Use of management accounting is responding to financial problems....................................9
CONCLSUION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Management is important for every business as it enable an organisation to manage their
working. In such relation planning, organising, controlling and directing are the major things
which are includes in management. As another necessary aspects for a business is management
accounting. Management accounting is a helpful decision taking tool under which reports get
framed on the basis of short term. As such reports get formulate on weekly, monthly or quarterly
basis. Managers play an effective role for presenting such statement in front of senior
management at the time for removing deviations from business (Zimmerman and Yahya-Zadeh,
2011). This assignment is based on management accounting for a medium sized enterprise AB
dynamics in UK. Their business establishment is from South West England with a revenue band
from £6M to £10M. This report will focus on the importance of management accounting system
for a business. There are various types of accounting system can be used by a company in
making their work and operations effective. As this process is helpful for removing deviations
from business and take adequate decision for short term purpose and provide strength long term
existence. Hence, whole focus on based on usefulness of management accounting system.
PART A
P1 Management accounting and requirement of various types of management accounting system
A managed organisation is one in which all necessary activities and operations get done
on time. As this is helpful for a company in attain their targets on time in adequate time period
(Ward, 2012). Along with this, by timely inspecting the statements of a company, authority and
governance can frame adequate strategies which enable them in operating work effectively and
efficiently. Management accounting is a process which used by many small and medium sized
organisation in identify the deviations and differences which are taking place on regular basis.
Unlike financial accounting system in which reports get framed by analysing the whole year
operations. Management accounting provides a opportunity under which statement are based on
short term period.
A major advantage of using this approach is gaining strength in a business by resolved all
issues and conflicts of short period. Decisions taken on frequent basis by not considering the
whole year facts. Many small problems which arise long term issues get resolved by using
management accounting concept. Development and growth with high profitability is an
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