Management Accounting - Oshodi Plc Assignment
21 Pages5360 Words27 Views
Added on 2021-02-19
Management Accounting - Oshodi Plc Assignment
Added on 2021-02-19
ShareRelated Documents
Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting and essential requirements of management accounting systems1P2 Different method of management accounting report........................................................3M1 benefits of management Accounting systems..................................................................4D1 Integration of management accounting system and report within organisational process5TASK 2............................................................................................................................................5P3 Techniques of cost analysis...............................................................................................5M2 Applying range of management accounting techniques..................................................7D2 Interpretation of above data..............................................................................................8TASK 3............................................................................................................................................8P4. Advantage and Disadvantage of different planning tools which is used by the organizationfor budgetary control..............................................................................................................8M3 Use of different planning tools and their application for preparing and forecasting budgets..............................................................................................................................................15TASK 4..........................................................................................................................................16P5 Adoption of management accounting systems to respond financial problems ..............16M4 Contribution of management accounting in sustainable success of the organisation whileresponding financial problems.............................................................................................18D3 Application of planning tools to respond financial issue along with attainment ofsustainable success...............................................................................................................19CONCLUSION..............................................................................................................................19REFERENCES..............................................................................................................................20
INTRODUCTIONManagement accounting is the procedure of gathering, determining and reportinginformation regarding the operations and finances of a business (Bartelmus and Seifert, 2018). Itis utilized by the manager for the provision of accounting information to better informthemselves before deciding matters within their organization. Every type of organisation usesmanagement accounting to make effective decisions and control business activities in efficientway. It is also known as managerial accounting and cost accounting that determine the cost ofbusiness to prepare financial reports. This report focuses on Oshodi plc that is UK basedcompany and manufacturing JOJO fruit juice to keep people healthy without extra preservatives.The presented report consists of different types of systems and reports of managementaccounting that help to conduct the procedure of an organisation. Calculate the net profit of thecompany with the help of costing method absorption and marginal costing method. Besides,apply different planning tools that forecast situation of company for the future and apply amanagement accounting system to sort out financial problems of the company.TASK 1P1 Management accounting and essential requirements of management accounting systemsIntroduction - Management accounting system involves preparing various types ofreports that assist determine the performance data of inner offices. There are discussing differenttype of accounting systems such as cost accounting, job costing, inventory management, etc.These systems applied by the Oshodi plc, which is a production-based organisation and conductoperations to manufacture JOJO fruit juice. Management accounting systems improve decisionmaking to get set outcomes. This task defined different types of a management accountingsystem and their fundamental requirement (Bennett and James, 2017).Management accounting – It is a method of creating reports which provide precisequantitative and financial data that organization’s managers require to make choices on a day today basis. It is different from the financial accounting because in management accountingfinancial data present in front of internal members while financial accounting present financialinformation to internal as well as external members.Management Accounting systems – The particular system has been developed by themanagement accountant to grab the information of real working in the context of various kinds1
of sections of a company. The various types of schemes that the organization's accountantusually formulates include cost accounting, work costing, price optimization, stock managementsystems, etc. The fundamental role that is further performed by organization leadership byanalysing the data collected from the various accounts involves scheduling, organizing,managing and choice-making (Christ and Burritt, 2017). Different types of advantages gain byOshodi's leadership from these schemes are efficient policy-making, cost reduction, greater profityield, etc. There are defined fundamental requirement of various types of managementaccounting system in the context of Oshodi plc -Cost accounting system – This system has been applied as accounting method byOshodi to discover the amount of total cost of manufacturing after the determination of inputcosts of every step that consider into manufacturing procedure. It is utilised by the selectedorganisation to calculate the cost to produce JOJO fruit juice. In this manner, firstly accountantevaluates and record these costs on an individual basis to compare input outcomes with real todiscover the financial performance. It will help company to receive data regarding thecontribution of the fruit juice in the profit generation of company.Inventory Management system – It is an important system for manufacturing companythat is utilised for track and evaluate the level of stock, sales, purchase, and orders. All detailedinformation gathers in detail through accounting system and utilised by Oshodi to theconceptualization of work order. The essential requirement of this system in the selectedorganisation is to gather information on work order, bill of materials and other productiondocuments process for the preparation of JOJO fruit juice. The different types of methods usedby companies for the calculation of stock such as LIFO, FIFO, and AVCO. The company hasbeen used the FIFO method to produce juice otherwise raw material goes to wastages and cannotproperly utilise of resources. FIFO method means firstly sell out those products that came first incompany. Price optimisation System – This system has been utilised by management of Oshodi toevaluate the behaviour of consumers to set different prices of their products. In the present time,this system is utilised by company to determine the impact over the sales of JOJO fruit juice dueto increase or decrease of prices (Janin, 2017). It is will help to set an accurate price structure tofulfil the requirement of customers. The essential requirement of this system set price structureand get maximum results in deference of sales revenue.2
Job Costing System – It is utilised by the production business that has variousproduction activities and jobs. Generally, mostly accountants apply this system to know cost andrevenue for particular job. It will further aid in ascertainment of the quantity of profit to achievegood performance in the job. The management of Oshodi utilised this system for JOJO fruit juiceto find out the cost and revenues in their production.Conclusion – As per the discussed all accounting system it is concluded that thesesystems applied in the organisation procedure and help to develop good relationships betweendifferent sections. Through these systems get detailed information regarding sales, revenues andimprove decision making a purpose to improve profitability (Kaplan, 2017).P2 Different method of management accounting reportIntroduction – Management accounting report is an internal part of every organisationthat presents all detail information regarding different divisions. In the part define the accountingreports and their importance.Management accounting Report – The presented reports have been produced by themanagement of Oshodi Plc to carry out interaction among the functioning of a section of acompany to grab wanted outcomes. All reports have their own importance that provides help togain high productivity as well as profitability.Inventory Management Report – This report presents information on inventoriesregarding production process. The main aim of the report carries out balance between inventoryinvestment and customer service. Through the report get information about utilisation ofdifferent sources such as raw material regrading to JOJO fruit juice. The advantage of this reportis to easily track the number of materials to arrange stock level as per requirement. Through thisreport aware of material and order on-time for more stock to produce goods at the right time inthe Oshodi.Accounts Receivable Report – The particular report provides information about thosecustomers who did not pay their due amount on time and are recorded as credit memos. It isutilised by the selected company to know about their overdue payment customer's information.Therefore, it analysis that how much time given to client for payment and when they were paidthat time determine and calculate late period in Oshodi (Kranacher and Riley, 2019). This reportis beneficial to find out the fact to develop tighten credit policies and retrieve their due money inset time.3
Job costing report – It is an accounting report that is utilised by the company to recordor track costs and generate profit for the job. There are including profit and loss to prepare astatement for the job that helpful for a manager of Oshodi to create effective strategy. It isbeneficial for company because this report selects by a company to recognise the problem andmake sure that will not repeat in the future.Performance Report - According to this report it consists of information aboutemployees as well as the organisation. The management of Oshodi develops this report todetermine the performance of their staff members according to the task into different sections(Lee and Smith, 2018). The benefit of this report is that it enhances the performance ofemployees efficiently and provide rewards according to performance. There are comparingstandards to take suitable decisions to improve performance and achieve objectives.Cost accounting Report – In this report define the raw material, labour, overhead, andany other cost incurred during production procedure. Through this report collect detailinformation of products and know their actual cost. It is produced by the Oshodi to know the costof different material that is used in the manufacturing process it can help to set profit for thecompany. It is beneficial for the selected business to understand all expenditures that help tobetter optimizing the available resource.Conclusion – It has been concluded that all the mention reports are playing an importantrole and become a reason for growth and development for the organisation.M1 benefits of management Accounting systemsCost Accounting System: According to this system calculate the skill of several processes that will assist to carryout more improvements. It is applied for fixation and deduction of amount. Inventory Management System:It will help in proper utilisation of resources and reduce wastages.This will apply in the company to maintain accuracy and take right decision on time. Price Optimisation System:This system applied in the selected organisation to set effective price structure for thecustomers. It will help Oshodi to generate more income with selection of best prices. 4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Requirements of Management Accounting Systemlg...
|18
|5553
|163
(Doc) Unit 5 Management Accounting - Assignmentlg...
|33
|7481
|64
Management Accounting in Oshodi Plclg...
|16
|4251
|21
Management Accounting System (pdf)lg...
|16
|5422
|38
Management Accounting: Methods and Techniques for Costing and Reportinglg...
|18
|5722
|63
Unit 5 – Management Accounting L-4lg...
|18
|5160
|38