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Essay on Management Accounting Systems

   

Added on  2020-06-04

16 Pages4346 Words23 Views
FinanceLeadership Management
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Management accounting systemsand its Applications
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Table of ContentsINTRODUCTION...........................................................................................................................1SECTION 1......................................................................................................................................1LO 1.................................................................................................................................................1P.1 Management accounting and essential requirement of management account.................1P.2 Different method to be used in management accounting ................................................2M.1 Benefit of management accounting ...............................................................................3D.1 Evaluating the management account techniques.............................................................4LO 2.................................................................................................................................................4P.3 Calculating cost and analyse to prepare income statement..............................................4M.2 Apply the rang of management accounting techniques .................................................7D.2 Interpretation the data .....................................................................................................7SECTION 2......................................................................................................................................8LO 3.................................................................................................................................................8P.4 Advantages and disadvantages of planning tools and used budgetary control ...............8M.3 Use of different planning tools ....................................................................................10D.3 Planning tools is help to solve financial problem .........................................................10LO 4...............................................................................................................................................10P.5 How the organisation is adopted management accounting system to respond financialproblem ................................................................................................................................10M.4 Analyses the responding the financial problem ...........................................................12CONCLUSION..............................................................................................................................12REFERENCES .............................................................................................................................13
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INTRODUCTIONManagement accounting helps to solve financial problem and improve internal workingenvironment. It is used during the time of making new decision at workplace or future planning.On the other hand, use some techniques to solve query. These are the methods which will beadvantageous and capable for the declared in signaling the dealings, compendious it and havingthe capable to inquiry over the issues of the operations. This report is based on Nero Ltd.Organisation (Laudon and Laudon2016). The company is located in United Kingdom andprovide different services in financial sector. Further, it covered planning tools and budgeting tobe used at workplace. SECTION 1LO 1P.1 Management accounting and essential requirement of management accountManagement accounting is one of the most important part in internal workingenvironment. It is use in financial performance to be taken in work place. This is used to guideeach and every terms to be used at the time to taken new financial decision and make somebetterment for overall organisation. Management accounting helps to understand and analyse therole of administration and techniques to be used in organisation (Ismail and King, 2014). It is oneof the most important parts and information that is used to professionals work. There are sometechniques are as follows:- Financial planning :- In management accounting, financial planning is one of the mostimportant part for future improvement of organisation. This is required for part ofdecision making at workplace. Cash flow statement :- In cash flow statement is most crucial part for financial bring off.A cash flow statement is more useful because it gives detail information about cashinflow and cash outflow in workplace. On the other side, cash control is one of the mostimportant parts in given time period (Ismail and King 2014). In this way, cash inflow andcash outflow is used at the time of preparing income statement. In administration accounting some important types of management accounting, which is used inessential requirement of management accounting are as follows :- 1
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Cost accounting :- In cost accounting is managed the cost of working capital in internaland external working environment. In organisation there are many types of cost to beused like fixed cost, variable cost and marginal cost. Budgetary control :- Budget is one of the most important part that is help to manage thegrowth rate in work place (Chenhall and Moers 2015). To be set budget in each and everyinternal activity to improve the carrying into action level. Tax accounting :- To increase the revenue of the business and manage the improvementin market to be paid tax like corporate tax, transportation tax etc. Auditing :- In this context audit is the examination of internal working environment withthe help of auditor. Some time external auditor is come for full inspection of the companyand check all such and fund flow management in work place (Bennett and et.al 2017). Itis help to find out the overall information regarding management programme. Financial management :- In financial accounting is help to preparation of cash flowmanagement, account management, income statement and fund flow management ininternal working environment. All such kind of factor is to be used in management accounting and essential part to be used inadministration accounting in organisation. P.2 Different method to be used in management accounting Management accounting is one of the most important part to manage the growth rate inmarket. The decision making is made if the right method is to b e used in accounting in workplace (Bennett and et.al 2017). In this way, method is most important and make someimprovement in internal and external working environment. There are many methods is to beused in working environment are as follows ;- Job costing :- In job costing method is one of the most important part and find outdifferent types costing such as manufacturing cost, maintenance cost etc. In this waythere are lot many costs is to be used in working environment and make someimprovement in work place. To find out such kind of cost is most important and analysesthe organisation profit position in market (Busco, 2016). It is help to determine the help isto be incurred in internal business view like direct material, direct labour and otherexpense. 2
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