Management Accounting System : PDF
Added on 2020-12-09
16 Pages4236 Words451 Views
Management accountingSystem and its application
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Explaining the concept of management accounting and the significance of various systems....1Presenting various methods of management accounting reporting............................................2Evaluation of the advantages and disadvantage of the management accounting systems andtheir application in KEF..............................................................................................................3Integration of the management accounting reporting and management accounting systems...5TASK 2............................................................................................................................................5Calculations under Absorption costing and marginal costing ....................................................5TASK 3............................................................................................................................................7
Presenting benefits and drawbacks of various types of planning tools under budgetary control.....................................................................................................................................................7Analysing the usage and application of planning tools by KEF in preparation and forecastingof budgets....................................................................................................................................8TASK 4............................................................................................................................................9Comparing the adopting management accounting system for responding to financial problemby KEF .......................................................................................................................................9Presenting the fact that dealing with financial problem through management accountingsystem leads KEF to sustainable growth...................................................................................10Use of planning tools for resolving financial issues and heading towards sustainable growth10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTION Management accounting is a provision of financial and statistical data of an organisationwhich is used by the business in decision making process and development of the company.This scope of management accounting revolve around the management decision making,devising planning and performance management systems along with providing expertise infinancial reporting. In the present report different sections under management accounting arediscussed. This includes presenting management amounting systems, their advantages withpresenting different methods of accounting reporting to KDF Ltd. For the new product launchingcalculation are presented by using absorption as well as marginal method of costing. Theapplication of various planning tool in the management accounting is done explaining their use.In the lase section of the report the ways in which KEF can use the management accounting infor responding to financial problem of the business are presented. TASK 1Explaining the concept of management accounting and the significance of various systemsManagement accounting is the application of the professional knowledge and the skill inpreparing accounting information in a manner that enables the management of the KEF Ltd informulating its policies and strategies. It also helps in effective planning and the controlling ofoperations within an organization. In management accounting, both financial and the nonfinancial information is been presented in a regular interval of time such as weekly reports,monthly etc. It includes the forecast, in-depth analysis and the budgets. Management accountingensure preparation of various charts for the performance and the forecast analysis which in turnhelps the managers of the company in making the best possible decisions (Novas, Alves, C. G.and Sousa, 2017). Management accounting is not been regulated by law so at the time of makingthe analysis no standards had to be followed as like in financial accounting. In other wordsmanagement accounting refers to the process for framing the management reports and theaccounts which facilitates accurate statistical and financial information which in turn helpsmanagers in making long and short term decisions. There are various systems of the management accounting that are important for the company toadopt as follows- 1
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