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Various types of management accounting systems

   

Added on  2020-10-22

17 Pages5141 Words145 Views
Management Accounting

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Different types of accounting system and their essential requirements................................1P2: Various accounting reporting systems..................................................................................2M1: Benefits of management accounting systems......................................................................4D1: Critically evaluate accounting system reporting..................................................................4TASK 2............................................................................................................................................5P3: Calculation of cost using techniques and preparation of statement of profit and loss..........5M2: Different types of management accounting techniques.......................................................7D2: Interpretation........................................................................................................................7TASK 3............................................................................................................................................7P4: Advantages and Disadvantages of different types of planning tools....................................7M3: Application of planning tools for forecasting preparing and analysing budgets.................9D3: Evaluation to deal with planning tools used in resolving financial problems....................10TASK 4..........................................................................................................................................10P5: Various measures to resolve financial problems................................................................10M4: Analysing management accounting techniques.................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13

INTRODUCTIONAccounting refers to the process of recording and summarising business transactions takeplace on daily basis so as to identify the actual financial position of an organisation. For this,management are formed which are held liable to prepare financial statement on annual basis sothat the stakeholders are able to know whether they feel secure about receiving return on theirinvestment on pre-determined time period. The present assignment is based on Zylla, a UK-based company which deals in multiple products. The project report includes different types ofaccounting systems along with the essential requirements. In addition with this, various reportingsystems which help in bringing out relevant information about company is also covered underthis report. Along with this, discussion about marginal and absorption costing methods are alsogiven in the present report. Different planning tools which are used in budgetary control are alsodescribed in this report. All other aspects are also briefly explained under this project report withthe context of Zylla (Boyns and Edwards, 2013.).TASK 1P1: Different types of accounting system and their essential requirementsIt is essential for every organisation to maintain their accounting and financial documentson regular basis in order to identify their actual financial stability. For this, the accountingmanager is liable to prepare financial statements with the help of using different accounting toolsand systems. Maintaining accounting information about an organisation help management inmaking an effective decisions and suitable plans for the betterment of an organisation. There aredifferent accounting systems such as cost accounting system, price optimisation system,inventory management system etc. which facilitate accounting manager to know actual positionof company. Thus, using management accounting systems gives various beneficial advantages tocompany which are given as below:Increase in efficiency: Managing accounting systems helps in identifying theeffectiveness of each business activity due to which the manager can able to take further actionin order to enhance efficiency if any deviation found.Measurement of performance: Identification of employees performance throughanalysing their actual performance with standard help management to improve skills andknowledge of low skilled employees.1

Effective management control: It plays an important role in managing business activitiesin an effective and efficient manner through analysing th financial documents.Types of accounting system:Price optimisation system: Such type of accounting system help management of Zylla indetermining the buying behaviour of customers towards purchasing company’s products andservices. Through such system, the manager are able to set prices for their products and serviceswhich maximises the interest and satisfaction level of customers. This will enable managementto guide their employees about utilisation of cost in executing different business activities in anefficient manner so that they can afford to sell products at an effective prices to the targetedcustomers. Therefore, using such system will directly help company in increasing sales figureand revenue (Dillard and Roslender, 2011).Cost accounting system: Using such system help management of Zylla in determiningthe total cost incurred in execution of different business activities. The main objective of usingsuch cost accounting system is to reduce cost of operation through utilising available resources atan optimum manner. For this, the management need to first forecast the effectiveness of businessactivity and accordingly make decision regarding investing cost which help them in achievingbetter possible outcomes in near future.Inventory management system: This accounting system help management in analysingthe inventory level the company have at present so that further decision can be taken regardingplacing order of inventory if shortage found. For this, the storekeeper should required to givenrelevant information about overall bills, record of invoices or other inventory related transactionsso that the manager of company will able to decide what amount of inventory the companyrequired to meet market needs and demands.Job costing system: Using such system help management in assigning total cost toproduce particular product or group of products with an expectation of getting profitableoutcome in near future. The information provided through such system help management insuggesting where the cost are compensate in order to produce profitable products in morequantity (Lavia López and Hiebl, 2014).P2: Various accounting reporting systemsA report is such a document which is prepared by the management of differentdepartment in order to provide actual position of business activity so that further actions and2

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