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Management Accounting Systems & Techniques (solved)

   

Added on  2021-02-19

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ManagementAccounting Systems &Techniques
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Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1 ...........................................................................................................................................3P1 Management accounting and essential requirements of different types of managementaccounting system..................................................................................................................3P2 Different method used for management accounting reporting..........................................5M1 Merits of management accounting system and its application in context of variousorganisations:..........................................................................................................................6D1 Evaluating of Management accounting system and management accounting which may beintegrated within organisational process...............................................................................7Gantt chart:.............................................................................................................................8P3 Preparation of income statement using absorption and marginal technique.....................8M2.Applying Management accounting techniques and preparing documents of FinancialReporting:.............................................................................................................................10D2 Interpretation of income statements: .............................................................................10TASK 3..........................................................................................................................................11P4 Planning tools for budgetary control :.............................................................................11M3 Usage of different planning tools and their usage and application in preparing budgets:13D3 Planning tools for accounting assist to resolve issues and support for sustainable success:..............................................................................................................................................13P5 Management accounting systems to responds to financial problems. ...........................13M4 Use of management accounting in solving financial problems and ultimately lead tosustainable success...............................................................................................................16CONCLUSION..............................................................................................................................17.......................................................................................................................................................17REFERENCES..............................................................................................................................18
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INTRODUCTIONManagement accounting is a process that measure the operating business activities inpreparation of annual reports and other financial statements. It help in the decision makingprocess to management. It provide various managerial information as well as tools andtechniques to increase the business operations. In this report Oshodi plc is selected as baseorganisation which provide the goods and services of fruit juice for all kind of age bracket. Thisreport focus on management accounting system and reporting, financial issue of the business,income statement of the selected business by using marginal and absorption costing. In additionto it covers the budgeting tools and techniques for the relevant business and giant charts. Furtherit includes advantage and disadvantage of planning tools and adaptation of managementaccounting system for respond the financial issue. TASK 1 P1 Management accounting and essential requirements of different types of managementaccounting system.It is a process that describes as detailed research of the management performance in orderto control the business activities so profit can be higher in the long term. Managementaccounting is important for the monetary and non monetary aspect of an organisation. Variousactivities of the organisation is to depends on management accounting and those are likeplanning, organising, directing, controlling and many other things. Beside it managementaccounting system help the organisation to control day to day working process.Managementaccounting systems refers to systematic utilisation of accounting information and records inorder to achieve targeted objects as per organisational policies and regulation.It also provideframework to business for evaluation of the business static data (Takeda and Boyns, 2014).There are various kind of management accounting system and its brief explantation are as given. Inventory management system: As per this management accounting system, it tracesthe stock of goods at stores, inward and outward inventory. It further assure the availability ofthe stock at right time with right quantity. This system is too much important for theorganisation. Through that they can manage the inventory of the organisation by tracking theinventory and raw material as well as in supply chain management. It also help to Oshodi plc inreducing its cost of JOJO fruit juice item with the help of inventory management system in
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effective manner. This system assure that stock is ordered from the creditors before the leadtime to obviate stock-out. For the purpose of valuation, different types of techniques are used i.e.LIFO, FIFO, Weighted average method which are defined as follows:LIFO: It means Last in, first out. It is a method that states the product which is last in atthe stores should be manufactured first.FIFO: It means First in, first out. It is a method which states that the goods which areproduced at the occurrence at beginning should be use in the production first. This is the bestmethod to use in the business organisation. Weighted average method: It is a method which divides the cost of goods sold from No.of manufacture units.Cost accounting system: This is the most essential system of management accountingthat based on the cost composition of a company. In the particular system of accounting,company includes various aspects related to business to find out the cost of manufacturing of thefruit items, provided services with the its effective strategies of cost like cost control. It play animportant role in the organisation. It provide framework in estimation of cost of products fororganisation. Oshodi plc is using this system in proper recording of the cost and price structureof the JOJO fruit juice and it uses the data in preparation of cost sheet and other costing systemto find out the profitability in the business. Price optimisation system: This system is helpful for the organisation in providingcorrect pricing of the product and services. As per this system, organisation charge differentprice for different product and services. It also keeps the price of the product and services whichit is in high demand and also focusing the quality of product and services. Oshodi plc is usingthis system to assure the exact price of JOJO fruit juice with the profitability of the organisation.As Customer satisfaction is obligation of an organisation so they manage all these things. Job costing system: Job costing system is the process of management accounting systemthat accumulated the cost data that is related with particular goods and services. In this methodthe production cost is basically find on the no. of finished projects and task. This system is morebeneficial for the organisation because it identify the accurate cost of a specific job. All theinformation is provided related to the product and services of a particular organisation. Oshodiplc is using this system to manage the various expenditure that are allocated with JOJO fruitjuice.
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