Management Accounting : Assignment Sample
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Added on 2020-09-17
Management Accounting : Assignment Sample
Added on 2020-09-17
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Management Accounting
INTRODUCTIONManagement accounting is helpful for managers to make better decisions for theorganisation. It relates to Management to take enhanced decisions as it provides financial dataand information with much ease. Also, it helps in making daily basis and short term decisions inthe organisation. Management accounting plays a vital role in a business. It gives appropriatereports of accounting to the company.This present report is based on Vectair Holdings in UK. Inthe report, definition of management accounting and requirement of different types ofmanagerial accounting are covered in this report. Along with this, different types of methodswhich are used in management accounting reporting and cost accounting techniques arediscussed. Other than that, in the present report, merits and demerits of different types ofbudgeting tools and some effective management accounting system which can be used by theorganisation are covered.TASK 1P1. Defining management accounting and essential requirements of its different kindsTo: General ManagerVectair Holdings From: Management Accounting OfficerSubject: Report to General Manager regarding management accountingIntroduction:Management accounting is required to be implemented by Vectair Holdings so that efficiencymay be achieved and company may be able to control upon its expenditures. Financial healthwill become stable by using management accounting systems and techniques. Management accounting: - It is the process which is used to prepare managementreports and accounts that provide appropriate information of the financial position of thebusiness. It helps manager in making the daily basis decision which can be very important for theVectair Holdings organisation. Management accounting includes cost accounting. It providesaccurate reports to the managers and so, they are able to make effective decisions at workplace.Management accounting handles different types of systems, reporting and income statements.Through it, company can prepare their income statements and know about the entire cost whichis used by it(Chenhall and Moers, 2015). Role of the management accounting is very important1
inVectair Holdings company. There are different types of management accounting system thatVectair Holdings should use are the following :Job costing system: - This is an effective and useful tool or system for the VectairHoldings. This management accounting system is used for tracking the cost and revenues by joband enables standardized reporting of profitability position. There are different types ofdepartments and employees in the organisation and manager allotted them different types oftasks. However, they are responsible for the tasks which are given bymanagers. This is theirresponsibility that they will give their better performance to company. Along with this, there are number of employees who are not able to give their effective orminimum performance to company. So, organisation can reduce their cost from the lowerperformance department (Renz, 2016). Other than that, there are number of employees who canbe able to give effective performance to company and so, management can provide them someeffective incentives and bonus. However, they will be motivated from the financial support. It isan important management accounting system in the organisation. Moreover, it can trackspecificcost of job and productivity of employees in the business.Inventory system: - This is one of the important management accounting systems inVectair Holdings organisation. Through this system, company can be able to secure their entireinformation and data which is used in the business. Vectair Holdings is the start-up company, sothey should use this type of accounting system in their business. When they can use it, they willbe able to keep their entire data and information in very safe place. It is very important forcompany that they will use their data and keep it in a secured place. Along with this, through inventory system, company can accumulate the sale, purchase,and return of products. Other than that, in this system, company can make the report about sales,purchase and return. When they are selling and purchasing their goods and services, then theycan entry in the inventory system of all data (Cooper and Qu, 2017). Thus, when they need it,they can easily track all information about sales and purchases. Other than that, managers canmake their decision on daily basis and it is very useful process for company.Cost management accounting system: Another useful method is cost managementaccounting system for the Vectair Holdings organisation. Through it, managers can identify thecost of entire department, products and services of company. Other than that, there are differenttypes of activities which are accomplished by some machinery, department or any other system.2
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