Management Accounting Systems PDF

Added on - 22 Jul 2020

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Management Accounting
Table of ContentsINTRODUCTION..........................................................................................................................1TASK 1...........................................................................................................................................1P1................................................................................................................................................1P2.................................................................................................................................................2M1...............................................................................................................................................4D1................................................................................................................................................5TASK 2............................................................................................................................................5P3.................................................................................................................................................5M2...............................................................................................................................................6D2...............................................................................................................................................6TASK 3............................................................................................................................................7P4.................................................................................................................................................7M3...............................................................................................................................................8D3................................................................................................................................................9TASK 4............................................................................................................................................9P5.................................................................................................................................................9M4:............................................................................................................................................10CONCLUSION..............................................................................................................................11REFERENCES.............................................................................................................................12
INTRODUCTIONManagement accounting is the best effective tool that can be used by the organisation inorder to make the business sustainable and also able to gain the business objectives in a pre-setmanner. However, there is a needs to implement the various management accounting tools thatcan be used by the organisation in order to gain the competitive advantages over the rivals(Brandau and et. al., 2013). There is a need to make certain business strategies that can beconverted into gaining the sustainable development. In this report, various managementaccounting systems are used and on the basis of these systems, various management accountingreporting frameworks are used. Net profits is calculated by using various absorption andmarginal costing are used. Various planning tools are used under this reports which would behelps out for making budgetary controls. Various financial distress which emerged are overcomeby using various accounting tools in an effective manner.TASK 1P1Management accounting is process of identifying, analysing and assessing and evaluatingthe financial and non- financial information that can be converted into diverse types ofinformation(Fleischman, Walker and Johnson, 2010). Management accounting systems are themost effective systems that can be used by the management of the organisation in order to gainthe sustainable development in an effective manner. There are diverse tools under managementaccounting systems are elaborated herewith:Job Costing system:Job costing systems are the most effective tools that can be used bythe manufacturing units in order to assess the price of a particular job. This is used specificallyin pharmaceutical agencies(Gates, Nicolas and Walker, 2012). This covers gathering of the costsof various materials, labour and overheads for a particular job. This kind of approach is aneffective tool for tracing costs of the individual jobs and assessing them to oversee if the costscan be controlled in the future jobs.Cost accounting systems: This is the most upgraded system which helps in eliminatingthe wastage of costs from the cost of production of the product. However, this is truly said thatthe management accounting process earlier used this traditional costing tools which were not asefficient as compared to this tool. However, this simply means that the management needs to1
adopt diverse kinds of tools that can be used for lowering down the cost of production in aneffective manner. This is rightly said that the management needs to adopt these kinds of toolsthat are used for attaining the competitive advantages in an effective manner.Inventory management system:This is the system that can be used by the managementaccountant in manufacturing units. However, this is simply said that the management canoptimise the inventory which could be effectively used in making the organisation for gainingthe sustainable development(Harris and Durden, 2012). By way of this system, management canimplement their resources and optimise their available resources in an effective manner. Value ofthe organisation's shares often moves importantly along with information about earnings. EOQrenders information relating to time period for ordering the stock again. This assist inoptimisation of their rendered resources.Price optimisation systems: This is the system that can be used by the organisation forexamining views of clients related to the prices that are fixed by management of Ryanair fortheir diverse services. This will likely assists in determining which prices are being elaboratedfor the profits of the organisation.Importance of the management accounting systems:The most crucial advantages related to reduction of diverse kinds of expenses like-aircraft equipment cost, Clients services costs, airport access and maintenance costs. There areother diverse advantages which are derived by the Ryanair that are elaborated hereunder:Reduction or control of diverse costs: Use of diverse accounting systems assists inlimiting of diverse expenses of various aspects. These diverse kinds hereunder:Aircraft equipment costs:Management of the firm considers strategy related to thecontrol the cost that are covered on tools to purchase single kinds of aircraft(Ihantola and Kihn,2011). In this report, during march 1998, Ryanair introduce new Boing 737-800 which is thenext generation aircraft. These kinds of aircraft has the basic types of characteristics that assistsin limiting of diverse costs.P2Management Accounting reports are those which records diverse kinds of informationwhich are related to the regular transactions of the organisation and other details which arerelated that could assist management to form an efficient future decisions. This is theresponsibility of the managers for handling these accounting reports for knowing the actual2
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