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Management Accounting - Assignment (Doc)

Added on - 23 Nov 2020

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Managementaccounting
Table of ContentsINTRODUCTION...........................................................................................................................3LO1..................................................................................................................................................31. Management accounting, benefits and its requirement.........................................................32. Techniques and methods used for management accounting and integration...........................4LO3................................................................................................................................................51. Merits and demerits of planning tools that is used in budgetary control and their application......................................................................................................................................................52. Planning tools helps to solve financial problems....................................................................7LO4..................................................................................................................................................81. Comparison between Unilever and Tesco that used management system to solve problems.82. Management accounting help to lead the enterprise sustainable success..............................9CONCLUSION................................................................................................................................9REFERENCE.................................................................................................................................11
INTRODUCTIONAccounting is the ballpark of every organisation that give a idea of running a businesscontrolling its activities and maintain profits of an enterprise. Management accounting is thecombination of management and accounting. Management refers planning, organising, directingand controlling the business activities and accounting refers to keep proper records of accountingtransaction(Ali and Zhang, 2015). The main purpose of this report is to understand theimportance of management accounting in any industry and what planning tools helps to controlthe budget. To understand importance of management accounting Unilever has been taken that isUK based manufacturing company that manufacture different of consumer products such asbeauty care, beverages, cleaning agents and various food items. Moreover, this report willcovered accounting techniques and methods that will help to integrate within organisation andplanning tools helps to solve financial problems in order to maintain profitability.LO11. Management accounting, benefits and its requirementManagement accounting is very essential in any industry that is used to analyse, measure,report, monitor and controlling the business activities for maintain the performance of anyorganisation. Manager of Unilever analyse the performance and take corrective action in order toget improvement in presentation. It makes planning every year and set budgets by evaluatingperformance of organisation as well as business actions. It follow different types of accountingsystem that has benefits also such as-Cost accounting system:This is used to analyse the manufacturing cost of products andservices and measure the profit margin by controlling the costs. Moreover, this system is mostlyused in each and every industry that gives cost idea and maintain profits. Manager of Unileverkeep records of all incurred cost by using this system that helps to maintain profits andaccountable for all cost(Ashraf and Uddin, 2015).Benefits:This system identify all incurred cost in a organisation and helps to correctdecision to reduce the cost.It gives an estimation of products and services to Unilever who earns profits atless cost.
Inventory management system:It is used to keep proper and exact records of goods andservices in each company and maintain stock that should be order. Manager of Unilever giveorder of raw material after analysing inventory system that helps to maintain stock and give ideaof further order.Benefits:This is useful in Unilever and each industry to arrange systematically stock'sinformation at one place.It also helps to save time and money by arranging records of slow movingproducts in any industry.Job costing system:This is a process of assigning the cost in to specific job that incurredin any organisation. This system is mostly used in construction business that divide the costaccording to project. Manager of Unilever also used this system to distribute the cost in differentdepartment such as marketing, finance, advertising, and human resource department that helps tocontrol cost of corporation.Benefits:This system is able to keep track records of individual's and team's performancethat helps Unilever to control the cost,efficiency and productivity.It also helps to maintain the cost of every department and arrange reduce the extracost.2. Techniques and methods used for management accounting and integrationManagement accounting plays an important role to run a business effectively that helps tocontrol the cost by analysing the performance. Any industry used techniques and method inmanagement accounting that helps to take better decision in order to make profitable corporation(Hirsch, Nitzl and Schauß, 2015). Manager of Unilever follows techniques and methods thathelps to managing accounts such as-Cost managerial reports:This report is used to control the cost in each enterprise byusing this technique. It gives an estimation of cost that occurred in a company after calculatingall expenses in corporation. Manager of Unilever prepares cost management reports with thehelps to past report that give a idea how much need to invest in particular sector.
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