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Management Accounting Assignment Solution - Zylla company

   

Added on  2020-10-22

14 Pages5015 Words285 Views
MANAGEMENTACCOUNTING
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1Management accounting and its essential requirement in reference to selectedorganisation......................................................................................................................................1TASK 2Techniques of cost analysis to prepare income statement through marginal costing andabsorption costing............................................................................................................................4TASK 3Advantage and disadvantage of different planning tools of budgetary control..................7TASK 4Compare of organisations for respond to financial problems............................................9CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
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INTRODUCTIONManagement accounting is the process of identifying, analysing, recording and presentingfinancial information to their management. Through financial information manager can conductvarious activities like plan,decision making and operational control (Management accounting,2019). With the help of management accounting one can get an answer of typical questions andbring maximum revenues, increase in the labour wage and set initial retail price of new product.On the basis of financial information, internal management system can predict the future andevolve short and long term policies. To understand the concept of particular report selectedcompany is Zylla. It is a large multinational organisation, which has under gone a number ofchanges over some time. As a result of spread into new market and locations, restructuring andacquisition. This report consists of management accounting and management accounting system.Apart from techniques of management accounting to analysis the cost and different planningtools for budgetary control. In addition, response to financial problems after using managementaccounting and comparison with another organisation to find out solution in effective manner. TASK 1Management accounting and its essential requirement in reference toselected organisationManagement accounting is also known as managerial accounting and cost accounting.The process of managerial accounting determine business costs and operations to developinternal financial report, accounts and records which can be presented in front of manager whocan use these to decision making process as well as in planning. In different words, it is the act ofmaking sense of financial and costing data and translating that data into useful information formanagement and officers in reference a company (Andon, Baxter and Chua, 2015). There are several types of management accounting systems which can coordinate withprocess of organisation related to Zylla company. There has been mentioned different typesmanagement accounting system - Cost Accounting system – The system is a framework used by firms to determine the costof their products in reference to profitability analysis, inventory valuation and cost control. Thissystem consists of inventory and cost control. It is difficult to predict cost of different products toconduct profitable operation. It is an accounting system which is designed for manufacturers thattracks the flow of inventory continually with the help of various stages of production. In1
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reference to Zylla company can multinational company so manage cost of all products ineffective manner apply cost accounting system. Price optimising system – The particular system has been used to set the price ofdifferent manufacturing goods. Price optimising system used to identify the prices of differentproducts in particular time period. With the help of this analysis of demand of their products andknow perception of customer regarding to different level of prices of their product. After that setprice of their product and provide help to set price structure to promote pricing, discount pricingand initial pricing. There are considering several element like product life cycle, collection goalsand competitors pricing strategies before deciding the prices of the different products. Job costing system – The particular system has been used to evaluate manufacturing costof each product in an organisation. It can help to track and monitor of the cost of each job ineffective manner. Zylla has been used this system in order to track expenses of their products andthere are including different types of information in reference to zylla company - Direct Materials – Through job costing system track the cost of material to identifyscrapped during to job. There has been complied cost with the help of tracking ofmaterials on cost sheets (Aryee and et.al., 2015). Direct Labour – With the help of this system track the amount of labour which is used injob and these are related to different services. It is mainly related to time card, time sheetthat is set according to clock application on computer. Overhead – The system has been assigned to one or more cost pools and in the end ofaccounting period, the total amount of each cost pool from several open jobs which isbased on the allotment methodology.The particular system has been required for the Zylla company because it can providedetailed information regarding to direct material, direct labour and overhead. Inventory management system – This system can track goods at each level ofmanufacturing and covers everything like production to retail, warehousing to shipping and allthe movements of stock and parts. Zylla company is expanding their business to restructureitself. So for new company it needs to manage all inventories in effective manner as per therequirement on customer basis. To manage inventory, company have different methods these areLIFO, FIFO and AVCO but Zylla has been selected FIFO method because in this method First infirst out because it can help achieve growth easily and help to maintain inventory long time. It2
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