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Management Accounting INTRODUCTION 3 TASK 13 P1: Management Accounting System

   

Added on  2021-02-19

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ManagementAccounting

Table of ContentsINTRODUCTION ..........................................................................................................................3TASK 1............................................................................................................................................3P1: Management accounting System......................................................................................3P2. Different Methods used for Management Accounting Reporting....................................5M1. Benefits of Management Accounting System and their Application..............................6D1. Integration of Management Accounting Systems and Management Accounting Reportingin Organisational Context.......................................................................................................7TASK 2 ...........................................................................................................................................7P3) Cost analysis through income statement..........................................................................7M2: Range of management accounting techniques ...............................................................9D2: Interpretation of data ....................................................................................................10TASK 3..........................................................................................................................................10P4: Advantages and Disadvantages of Planning tools for budgetary control .....................10M3: Analysation of planning tools.......................................................................................12TASK 4..........................................................................................................................................12P5: Comparison on how organisations are adopting management accounting system........12M4: Management accounting lead to organisation to financial success .............................14D3: Evaluation of planning tools and its significance in organisational success.................15CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16

INTRODUCTION Management accounting refers to a tool or technique which is utilised by managers ofvarious business entities for measuring, monitoring, analysing, planning, and controlling all thetasks and activities for acquiring sustainable success. It helps members of management team todevelop strategic decisions to accomplish specific tasks on time and achieve predeterminedobjectives of an organisation (Usenko and et. al., 2018). It helps internal shareholders to analyseperformance of company and form decision making. Oshodi PLC is a manufacturing companywhich is specialised in production of JOJO fruit juice that covers all age bracket. This reportcovers the importance of management accounting in decision making process and the need ofdifferent types of management accounting system. It also covers various processes that is usedfor management accounting reporting. In this project, cost is calculated by using appropriatetools of cost analysis for preparing an income statement with the help of marginal and absorptioncosts is covered. Further it covers advantages and disadvantages of various kinds of planningtools that is used for budgetary control in production of JOJO fruit juice. The way in whichorganisations is adapting and using management accounting system for responding to variousfinancial problems is also covered in this project. TASK 1P1: Management accounting SystemManagement Accounting- It can defined as a tool and technique that is adopted bymanagers of different organisations in order to monitor, analyse, control, measure and planperformance of a company for the purpose of generating higher profits in future. With the help ofmanagement accounting, managers utilises provision of information related to accounting forattaining better performance of certain control functions (Management Accounting – Meaning,2019.). It helps members of an organisation to take strategic decisions for accomplishingdifferent tasks and activities. Management Accounting System- These are the tools that is used to analyse actualstatus of an organisation for attaining its predetermined objectives. It helps in guiding internalshareholders to determine probability of a company which will enhance overall performance ofan enterprise. Oshodi PLC firm that is specialise in producing JOJO fruit juice should keep an

eye on each activity and will use different types of management accounting system tools whichare-Inventory management system- It can be defined as an method that is used to control,oversee ordering, and storing of certain components which is applied by corporation inproduction procedure of goods sold by it. This system is usually utilised in companies that arerelated to engineering and manufacturing procedures (Adler, 2018). It is a combination ofapplication of barcode printers, scanners, mobile devices, and desktop software to streamline thissystem like consumables, supplies, stock, and goods. It can be defined as an practice to controland oversee quantities of finished goods for the purpose of sale. It will help managers to haveinsight and make them capable to make sufficient decisions of inventory. This method is used bymanagers Oshodi for controlling and overseeing ordering of JOJO fruit juice. Job Costing System- It can be defined as an system that is used for allocatingmanufacturing costs to an individual item of product. It applies for a purpose of checking ifproducts of an organisation are different from each other or not. It includes practice ofaccumulating data upon costs that is related to a particular job. The information that is needed inorder to submit cost data towards consumer under a contract under which costs are refunded.This method can be used by Oshodi in order to allocate manufacturing costs to JOJO fruit juiceto determine cost of every job separately. Cost Accounting System- It can be defined as a framework which is applied bycorporation for approximating cost of different products for controlling costs, inventoryvaluation, and profitability analysis (Phang, Siti-Nabiha and Jalaludin, 2019). In this system,allocation of cost is performed which is based upon traditional accounting system and activitybased costing system. Its basic aim and purpose is to capture production cost of company. Ithelps to measure and record costs individually and then compare inputs results to actual outputfor assisting management of an organisation in measuring and evaluating overall financialposition of a company. Oshodi PLC can utilise cost accounting system to determine currentfinancial position of it.Price Optimisation System- This system of management accounting is used by manyorganisations for setting up adequate pricing for its products and services in order to attract largenumber of customers towards an enterprise. This model is used to alter pricing for segmentingcustomers by stimulating the way in which targeted customers respond to changes in price. It

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