Management Accounting Systems and Techniques Assignment Sample
Added on 2021-02-21
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Management Accounting Systemsand Techniques
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 Management accounting and different types of management accounting systems...............3P2) Methods used for management accounting reporting...........................................................5TASK 2............................................................................................................................................7P3) Calculation of the costs with preparation of the Marginal and Absorption Costs................7TASK 3............................................................................................................................................8P4) Advantages and disadvantages of types of planning tools used for budgetary control........8TASK 4..........................................................................................................................................10P5) Compare how organisations are adapting management accounting systems to respond tofinancial problems.....................................................................................................................10CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONManagement accounting is an effective operation to render financial data and asset forthe manager to pursues proactive decisional procedures. It is only used by an internal team of anorganisation and this is the only thin which helps to makes it being different from the financialaccounting (Turner and et. al., 2017). Thus, the objectives of the management accounting is toutilises this statistical data and takes out the better and accurate decision, controlling anenterprise, business activities and development. In the current era, role of the managementaccounting is to be deals with managerial aspects of an organisation and checks out accountingformulation into the management of a business function. This report will be carry out on Jo-Jojuice centre with an agenda of producing juices products. A report will cover concept of the management accounting and essential requirements ofa different types of management accounting system. Also, report will also cover different methodwhich is used for management accounting reporting and finds costs of appropriate techniques ofthe 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 howbusinesses are adapting managerial accounting system. TASK 1P1 Management accounting and different types of management accounting systemsManagement accounting is one of the essential concept, which is necessary for every firmto takes out effective decision making in context of accounting and recording. It is an applicationof professional knowledge & skills into preparation of the accounting information in such a wayas to assist management in development of the policies & planning and control of operation. Itassist manager's to pursue decision making to record data & information being relates to puremanagerial aspects (Tappura and et. al., 2015). Also, the purpose of management accounting isto 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 amanager's of JOJO fruit juice to utilises this concept of management accounting to ascertainsummative cost and revenue for ascertaining operational outcomes or measures.Management accounting system
A management accounting system is termed as organisation's major sources of necessaryinformation in managerial decision making. As per contingency theory, there is no universallyappropriate MAS that can be implemented in different organisational types. This can also termedas standards are made to pursues long term decision making to up-hold company to pursuesaction planning (Spraakman and et. al., 2015). Its basically one of the analytical tool assistsbusiness entity to gather decision making to lead organisation to makes its capacity that wouldwork with purpose of firm's profit & expenses. Such system is mainly guided by setting of thestandards 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 termbusiness goals & targets and guides organisation to built formative decision processes. With use of management accounting system, it is very well accepted that with use ofmanagement accounting, it would be ease for firm to pursues decisions which are in favour tobuild 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 thefirm to gain separate decision making. To benefit aim, different types of management accountingsystem is explained as under:Price optimisation system: The main aim of such is to ascertain manufacturing cost ofthe products including all expenses such as manufacturing, selling and promotion cost for anyproduct. In this system, strategies such as competitive pricing, analysis of product life cycle andgoals of the company is need to achieve (Shields, 2015). If company wants to build its sales, theyhave to keep their prices at low and higher the price to achieve more profits. In context of JOJOfruit juice, aim here is to keep balance between sales and profits at one time. Also, such systemwill help JOJO fruit juice to estimates demand & supply of their customer's at right price point. Inventory management system: It is the tool that allows you to keep tracking good acrossbusiness supply chain. It optimises entire spectrum spanning from order placement with vendorto order delivery to your customer's and maps complete journey. Effective inventory system ishelpful to ensures on availability of raw materials without any kind of wastage of the goods. Insupport to the JOJO fruit juice, there are different types of the inventory management systemdiscussed as below:FIFO (first in first out method): In accordance with this, older inventory which entersthe warehouse is to be kept first is on priority for purpose of manufacturing of their products.
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