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Project on Accounting and Reporting System

   

Added on  2020-06-06

16 Pages4283 Words47 Views
ManagementAccounting

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Different types of accounting system and their essential requirements...........................1P2: Various accounting system use in reporting....................................................................3M1: Evaluate the benefits of management accounting systems and their application within anorganisation............................................................................................................................4D1: Critically evaluate the management accounting and reporting systems and its integrationwithin organisational process.................................................................................................5TASK 2............................................................................................................................................5P3: Different costing methods................................................................................................5M2: Various types of accounting techniques.........................................................................7D2: Data interpretation...........................................................................................................7TASK 3............................................................................................................................................8P4: Merits and demerits of using planning tools in budgetary control...................................8M3: Use of different planning tools and their applications..................................................10TASK 4..........................................................................................................................................10P5: Various financial issues and measure to resolve it.........................................................10M4: Roles of management accounting in analysing financial problems..............................11D3: Evaluation of planning tools for respond financial issues.............................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13

INTRODUCTIONManagement accounting is such a tool which is used to assist management in order tomake an effective planning and controlling the business operations with a motive of achievingdesired goals and objectives. It is applicable to every organisation irrespective of the sizewhether small, medium and large. It is helpful for management of company to make an effectivedecision with the help of data and information gathered through various accounting and reportingsystems. Tata motors Limited, an Indian automotive company which deals in manufacturingwide variety of passenger vehicles such as cars, trucks, construction equipment. It has operatedin many countries such as UK, Italy, south Korea etc. thus captured large market share. Theproject covers various accounting and reporting system which brings useful information tocompany. Different planning tools to control budgetary control and few techniques to solvefinancial problems are also discussed under this report (Armitage, Webb and Glynn, 2016). TASK 1P1: Different types of accounting system and their essential requirementsDefinitions of Management accounting: According to the CIMA, Management accounting refers to the process of identifying,measuring, accumulating, analysis, interpreting and communicating relevant information whichis used by management to make an effective plans and policies with a motive of utilisingavailable resources in an optimum manner.According to the Wilson and Wal, the management accounting refers to techniques andtool which is used with an intention to provide financial and non-financial information in orderto make profitable decision to achieve desired goals and objectives.Functions of Management Accounting There are mainly four types of functions such as Planning, Organising, Controlling andDecision-making. Management accounting plays an important role in these managerial functionswhich need to be performed by managers with a motive of achieving desired goals and objectivewithin limited period of time.Planning: It refers to making an effective planning with the help of using informationgathers through accounting system in order to achieve desired goals and objectives. A budget isfinancial planning which is prepared with a motive of utilising financial resources in an optimum1

manner (DRURY, 2013). It helps in guiding and motivating employees to perform in rightdirection to achieve desired target.Organising: It is a process of creating framework and assigning roles and responsibilitiesto members of an organisation on the basis of their skills and knowledge in order to bringpositive outcome in near future. Thus, it is important for manager to first identify theircapabilities of employees through analysing their previous performance and accordinglyassigning roles and responsibilities in order to get positive result.Controlling: It is the process of monitoring, analysing the actual result in order to findout whether an organisation moves towards right direction or not. For this, manager is requiredto collect feedback from employees in order to find out deviation and accordingly take correctivesteps on time. The management of company should required ton use various accounting systemswhich help them to control business activities with a motive of preventing wastage.Decision-making: An effective plan cannot be made without an effective decision thusthe manager need to first target objectives and accordingly decide organisation structure in orderto operate business operations in an effective and efficient manner (Ferreira, Moulang andHendro, 2010). Thus, it is important to collect feedbacks from the employees and accordinglyfocus on removing issues while taking an effective decision.Difference between Management and financial accounting:Management accountingFinancial accountingThe main aim of MA is to provide sufficientand important data to managers regardingformulating an effective planning andstrategies to achieve set objectives.The main aim of FA is to provide financialposition of company through preparingfinancial statements such as P&L a/c, Balancesheet.The information obtained through managerialaccounting is useful for external parties such asshareholders, creditors etc.The information obtained through financialaccounting is useful for managers andemployees.It is more emphasis on the future.It is more emphasis on past.It is not mandatory by law.It is essentially required to prepare financialstatements on annual basis as per the law.Types of accounting system:2

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