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Management Accounting System in Unicorn Grocery : Report

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Added on  2020-01-07

Management Accounting System in Unicorn Grocery : Report

   Added on 2020-01-07

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MANAGEMENT ACCOUNTING
Management Accounting System in Unicorn Grocery : Report_1
Table of ContentsIntroduction...........................................................................................................................................3Task 1.....................................................................................................................................................3P1 Management accounting and different types of management accounting system..........................3P2 Different methods used in management accounting........................................................................5Task 2.....................................................................................................................................................8P3 Calculation of cost ............................................................................................................................8Task 3.....................................................................................................................................................9P4 Advantage and disadvantage of planning methods of Budgetary control........................................9Task 4...................................................................................................................................................10P5 Adaption of Management Accounting System during financial problem..................................10Conclusion...........................................................................................................................................11REFERENCES.........................................................................................................................................12
Management Accounting System in Unicorn Grocery : Report_2
IntroductionManagement accounting plays a prominent role in the success for each and every businessorganization. It is the combination of finance, accounting and management with using ofvarious aspects and tools in order to manage accounting in a business unit. It is systematicprocess of preparing financial data and information which can be managed by the managers.There are various tools and methods that can be used by the manager of the company in orderto attain their long term goal and goods (Angelakis, Theriou and Floropoulos, 2010).Management accounting also helps to make various strategic decision making such asexpansion of business, increase debt, diversification in the business etc. The present report isbased on the Unicorn grocery which is one of the leading food outlets in the UnitedKingdom. The cited business company is providing a wide range of products and serviceswith the organic quality food. The main aim of this report is to understand the significance ofmanagement accounting and its role in the business performance. Task 1P1 Management accounting and different types of management accountingsystemManagement accounting is a process which can help to analyses, measuring and interpretingfinancial data and information and communicate this information to its various stakeholdersuch as customers, employees, suppliers, financial institutions, shareholders, government etc.This information also helps to make various decisions which can be strategic level,operational level and tactical level (Baldvinsdottir, Mitchell and Nørreklit, 2010). The role ofmanagement accounting in the strategic role:Risk management: This is one of the major role of management accounting in whichcalculating the risk is associated with the project and analyses these in an effective manner sothat they can attain its long term goals and objectives. Performance management: This is another role where manager of the cited business unit is todetermine those risk and improve business performance in an effective manner. There are various types of features
Management Accounting System in Unicorn Grocery : Report_3
Effective decision making: This is one of the crucial role in an organization where companyrequired to use management accounting as a tool in order to get relevant information whichcan leads to increase the effectiveness of decision making. To provide relevant data: There are various data which is related with income andexpenditure of the company. With the help to this financial information the cited businessunit can make control techniques which can help to increase the profitability of the companyapart from that there are various financial information which is relevant for the potentialinvestors of the company. It can help to attract those investors which can support inexpanding its business performance in the near future. Attaining organizational goals: With the help to management accounting the cited businesscan achieve their short and long term goals and objectives in an effective manner. Forexample, there are various cost control approaches which can be used by the employees ofthe company which can lead to increase revenue (Bodie, Z., 2013). It is common goals foreach and every business organization. To increase efficiency: Management accounting provide different tool such as budgeting, costaccounting, etc. can help to increase the operational and management efficiency in aneffective manner. Different types of management accountingThere are different types of management accounting tools which are given below:Operational budget: This budget is a systematic process where the manager of the company ismake budget for all operational activities for a specific period of time (Burritt and et. al.,2011). The time period of the budget is depending on the requirements like monthly,quarterly, yearly. For example, in the context of a cited budget unit such budget is made bythe line manager of company who can make various budget such as production budget, finishgoods budget, sales budget, labour budget, direct and indirect expanses budget,administration overhead budget etc. Cash flow budget: This is another types of management accounting budget which is relatedwith the income and expenditure plan for the operational activities of the company. In thisbudget the manager of the cited business unit get cash for their proposed expenses with in aperiod of time.
Management Accounting System in Unicorn Grocery : Report_4

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