Management Accounting Systems and Reports for London Tradition

Management Accounting

INTRODUCTION
Management Accounting refers to the way in which the use of different types of methods
and techniques can be made to take important decisions so that this can be helpful for the
organizations (Alsaid and Mutiganda, 2020). Management Accountants should make sure that
they are able to make its use for attaining goals and objectives in the future. Therefore, it is quite
crucial that it can be used according to the specific level of needs and requirements which persist
in the organization so that the necessary actions can be taken in order to solve the problems and
to take the important and crucial decisions which will be helpful for the company. London
Tradition has been selected for this report. It is a manufacturing company which has its
headquarters in London, United Kingdom. The focus of this project will be on the way in which
Management Accounting is required to be used so that the attainment of the goals and objectives
can be done.
TASK 1
P1: Management Accounting Systems
Management Accounting refers to the use of financial data, facts and information so that
the decisions can be taken in a better manner (Balashova and et.al., 2021). The managers of
London Tradition should make sure that they use it appropriately in a right way.
Different types of Management Accounting Systems can be used by the firms. Their
explanation is provided as follows-
Cost Accounting System- In this system, an accurate determination of the costs can be
made (Cvetkoska and Eftimov, 2021). Thus, it has to be used for the particular purpose of taking
actions which are crucial for reducing the costs. It is a system which is useful because it is
helpful in the determination of the overheads and segregating them according to the departments
which will therefore help a lot in taking of the necessary actions accordingly. Therefore, it
should be ensured that this system is used appropriately for managing the excessive costs in a
proper and appropriate manner. The management of London Tradition therefore should ensure
that its use is made quite properly.
Essential requirements-
 Assessment of the overheads can be done when the use of this system is made which will
help in enhancing the overall level of profits.
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 Through making the use of this system the way in which the costs are to be reduced
should be identified which can help the firm a lot.
Inventory Management System- Through the use of this system the inventory level can
be assessed quite properly (Golyagina and Valuckas, 2020). Thus, through making its use a
better track of the inventory items can be kept which will thus help a lot in taking of important
decisions for reducing the excessive costs which are related with inventory. It is required to be
used for the purpose of ascertaining the way in which the tracking of the stock items can be
carried out so that the appropriate actions can be taken accordingly. London Tradition therefore
has to make sure that it makes its use so that it can manage the different types of stock items in a
better manner.
Essential requirements-
 In this system, the tracking of the stock items should be done so that the needs and
requirements are managed well.
 In this system, the decisions which are related with inventory management should be
taken which will therefore help the organizations a lot.
Job Costing System- In this system, the better track of the different types of job orders
can be kept so that the right decisions can be taken in this manner (Indrasari, 2020). Therefore, it
can be stated that through its use the identification of the way in which the detailed track of the
different types of job orders can be kept can be done which will thus be quite helpful for the
companies. It is helpful in the identifying the way in which the enhancement in the profits which
are being earned through job orders can be done. In the context of London Tradition, it can be
stated that this particular system should be used which will help in the attainment of goals and
objectives.
Essential requirements-
 In this system, the job orders are required to be managed well so that the better decisions
can be taken. Thus in this way the better management of the job orders can be carried out
quite effectively and efficiently.
 Through this system, the tracking system can be used so that the job orders are managed
well which will help in taking important decisions.
Price Optimization System- In it, the mathematical and statistical models and
techniques should be used for setting appropriate prices (Klaprabchone, Chuaychoo and
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Chaemmuangpak, 2020). Thus, In this way better prices can be set which will therefore help the
organizations a lot in ensuring that they can enhance the overall level of profitability which will
help them a lot in ensuring that the overall level of efficiency and effectiveness level can be
carried out.
Essential requirements-
 In this system, the prices can be set according to the demand level so that the attainment
of the goals and objectives can be carried out.
 The market trends can be identified through the use of this system which will help the
organizations in attaining the goals and objectives.
P2: Management Accounting Reports
Management Accounting Reports should be used so that the Analysis and Interpretation
can be performed for deriving the conclusions and recommendations can be drawn (Lada,
Kozarkiewicz and Haslam, 2020). The following reports should be used by the managers of
London Tradition-
Job Costing Reports- In these reports, a proper and detailed assessment of the different
types of job orders and the costs which are associated with them should be carried out. The
managers of London Tradition should ensure that they should be able to make the use of these
reports so that the reduction in the job costs can be carried out (Le, Nguyen and Hoang, 2020). A
detailed review of the way in which the management of the job orders should be carried out
should be done by making their use so that it can help the organizations to be able to take the
right decisions concerning with the future. In this way, the reports will help the managers to be
able to take appropriate actions which will help them in the future.
Inventory Management Reports- In these reports, a proper and detailed assessment of
the inventory should be made so that a better track record of the stock items can be made which
will help in taking of the important decisions (Liem and Hien, 2020). They are helpful because
through making their use the action related with stock management can be taken in a better way.
Thus, this will be useful so as to ensure that the problems and issues persisting with inventory
can be resolved. London Tradition's managers should therefore make sure that they should be
able to make their use so that they can ensure that the appropriate management of the stock items
can be carried out.
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