Management Accounting Systems & Techniques: Assignment

Added on - Dec 2020

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Management AccountingSystems & Techniques
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Meaning of Management accounting and their essential need........................................1P2: Different types of accounting reporting methods.............................................................3M1: Benefits of using various management accounting system............................................5D1: Critical evaluation of various reporting and accounting system.....................................5TASK 2............................................................................................................................................6P3: Different types of costing method used for the purpose of calculating net profit............6M2: Various types of accounting techniques.........................................................................8D2: Data interpretation...........................................................................................................8TASK 3............................................................................................................................................9P4: Merits and demerit of using planning tools to control budgets........................................9M3 utilisation of type of planning tools and their application for making forecasting andbudget...................................................................................................................................10D3 Planning tools for responding financial problems to assist budgetary control...............10P5: Comparison with other organization that how they are using MA to overcome financialissues.....................................................................................................................................10M4 Planning tools for responding the financial problems to lead organisation...................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONManagement accounting is one of the effective ways which is being used by varioustypes of organisation in order to arrange their financial transaction. There are various crucialaspects that will be taken into account for analysing various operations and accounting data thoseare collected by the manager during within an organisation. Accounting used to play vital role inrecording, summarising and evaluating all data of the company in effective and efficient mannerinto their respective statements (Bradbard, Alvis and Morris, 2014). While, management used toprovide reliable rules and strategies for recording of data accurately into various reports. Thisproject model aims to provide specific information about type of accounting system andreporting methods use by “Hichrom Ltd”. Use of various costing method to calculated net profitthey are getting during the period can be analyse effectively. Use of merit and demerit ofplanning tool to control budgets of the company. comparison of various accounting methodwhich will be helpful for resolving financial issues those are arises in an organisation. All theanalysis is done to get better outcomes in preparing proper balance within internal and externaldepartment.TASK 1P1: Meaning of Management accounting and their essential needIn every profitable business organisation, it has been observed that they are facingvarious types of issue regarding recording of everyday transactions. It has been observed thatmanagers are always ready to deal with all kind of issues those are affecting profitability ofHichrom Ltd” company. It is known as one of the expanding company which is operating at thecutting edge of separation. It was establishing in 1978 and consider as world’s largest producersand distributors of ultra-high performance and liquid chromatography accessorises. Their goodsare utilised at the frontiers of science, forensics and medicine sectors. It comparison of two partssuch as management and accounting. Accounting is known as one of the crucial aspects whichwill be taken into account for recording, summarising, communicating and analysing variousfinancial transactions. While, the role of management is to guide and provide reliable direction interm of rules and policies that can provide more valuable outcomes in near future time.Definition: Management accounting is referring as one of the effective sourcing,analysing, communication and effective use of decision those are related with financial and non-financial data to incurred value for the department (Van der Stede, 2011).1
According to a profession, MA used to provide appropriate knowledge of business andtheir operational aspects to administration so that business risks and opportunities can bemitigating. It is considering as one of the effective process of delivering data to administrationwhich is collected for attaining better outcomes in near future time. This seems to be valuableactivity that is done by managers by using financial data regarding a company in respect tosupport effective decision making. In case, Hichrom Ltd is using management reports and datathose are prepared by using financial and numerical information to make short and long termsdecision.Significant of MA:Importance of management accounting would assist in effective control of businessorganisation. It is having been found that organisation is always need to have reliable systems, ifthere is any increment on overall sale of production, modification as well as use of latesttechnological changes are needed to be taken into consideration. It is more effectively helpful forthe department in order to increase profitability as well as efficient of the company at the sameperiod of time.Types of accounting system:Cost accounting system: This seems to be one of the effective accounting system thatwill be consider integral part of Hichrom Ltd company. It is used to analyse internal cost whichwould be properly reflecting proper allocation of system to examine cost and expenditureincurred during the time. It is one of the effective accounting measure those are based onprinciple of financial aspects in everyday business decision making. This happens to be reliabledesign taken into account by industry to predict cost for their products in order to evaluate stockvaluation and total cost that is going to incurred during the production time (Quinn, Strauss andKristandl, 2014.).Price optimisation system: This is taken into account as effective use of numericalevaluation done by “Hichrom Ltd company” to analyse how clients would react to various pricesfor its good and services. This seems to be effective prices those are considered by the companyin order to examine best out of them can be able to meet out their objective like increasingoperating profits. This would be based on valuable ability to stimulate and make visualisation ofprices downfalls.The role of manager must allow an organisation to use pricing strategies aseffective profit level that will often considered in underdeveloped nations.2
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