Management Accounting Systems and Techniques

Management Accounting Systems
and Techniques

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Management accounting and different types of management accounting systems...............3
P2) Methods used for management accounting reporting...........................................................5
TASK 2............................................................................................................................................7
P3) Calculation of the costs with preparation of the Marginal and Absorption Costs................7
TASK 3............................................................................................................................................8
P4) Advantages and disadvantages of types of planning tools used for budgetary control........8
TASK 4..........................................................................................................................................10
P5) Compare how organisations are adapting management accounting systems to respond to
financial problems.....................................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Management accounting is an effective operation to render financial data and asset for
the manager to pursues proactive decisional procedures. It is only used by an internal team of an
organisation and this is the only thin which helps to makes it being different from the financial
accounting (Turner and et. al., 2017). Thus, the objectives of the management accounting is to
utilises this statistical data and takes out the better and accurate decision, controlling an
enterprise, business activities and development. In the current era, role of the management
accounting is to be deals with managerial aspects of an organisation and checks out accounting
formulation into the management of a business function. This report will be carry out on Jo-Jo
juice centre with an agenda of producing juices products.
A report will cover concept of the management accounting and essential requirements of
a different types of management accounting system. Also, report will also cover different method
which is used for management accounting reporting and finds costs of appropriate techniques of
the cost analysis to prepares income statement with using of marginal and absorption methods.
Also, assessment will also led discussion on different types of the budgetary control and how
businesses are adapting managerial accounting system.
TASK 1
P1 Management accounting and different types of management accounting systems
Management accounting is one of the essential concept, which is necessary for every firm
to takes out effective decision making in context of accounting and recording. It is an application
of professional knowledge & skills into preparation of the accounting information in such a way
as to assist management in development of the policies & planning and control of operation. It
assist manager's to pursue decision making to record data & information being relates to pure
managerial aspects (Tappura and et. al., 2015). Also, the purpose of management accounting is
to brings management into the radar of co-operative work and bring success for the organisation.
Its a clear system to keep records of management and analyse them to pursues business decision.
Organisation should start focus on development of tools or techniques. Its being necessary for a
manager's of JOJO fruit juice to utilises this concept of management accounting to ascertain
summative cost and revenue for ascertaining operational outcomes or measures.
Management accounting system

A management accounting system is termed as organisation's major sources of necessary
information in managerial decision making. As per contingency theory, there is no universally
appropriate MAS that can be implemented in different organisational types. This can also termed
as standards are made to pursues long term decision making to up-hold company to pursues
action planning (Spraakman and et. al., 2015). Its basically one of the analytical tool assists
business entity to gather decision making to lead organisation to makes its capacity that would
work with purpose of firm's profit & expenses. Such system is mainly guided by setting of the
standards and policies to build long term decisions in very profitable way. For JOJO juice centre,
management accounting system is the sustainable concept that would led to achieves long term
business goals & targets and guides organisation to built formative decision processes.
With use of management accounting system, it is very well accepted that with use of
management accounting, it would be ease for firm to pursues decisions which are in favour to
build and optimises the cost and ascertain long term profit making. In context of JOJO fruit juice,
its being proved necessary to apply management accounting system to provides assistance to the
firm to gain separate decision making. To benefit aim, different types of management accounting
system is explained as under:
Price optimisation system: The main aim of such is to ascertain manufacturing cost of
the products including all expenses such as manufacturing, selling and promotion cost for any
product. In this system, strategies such as competitive pricing, analysis of product life cycle and
goals of the company is need to achieve (Shields, 2015). If company wants to build its sales, they
have to keep their prices at low and higher the price to achieve more profits. In context of JOJO
fruit juice, aim here is to keep balance between sales and profits at one time. Also, such system
will help JOJO fruit juice to estimates demand & supply of their customer's at right price point.
This system help in finding that pricing sweet spot or maximizing price against the customers
wiliness to pay. It assist the company to assure that their products and goods will sell quickly at
the right price while still making a decent profit.
Inventory management system: It is the tool that allows you to keep tracking good across
business supply chain. It optimises entire spectrum spanning from order placement with vendor
to order delivery to your customer's and maps complete journey. Effective inventory system is
helpful to ensures on availability of raw materials without any kind of wastage of the goods. This
system is required at different locations within a facility or within many locations of a supply