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Sample Assignment on Management Accounting (pdf)

   

Added on  2020-12-26

10 Pages2965 Words388 Views
MANAGEMENT ACCOUNTING

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Different types of management accounting system..........................................................1P2 Different methods used for management accounting reporting........................................2TASK 3............................................................................................................................................3P4 Different types of planning tools and their advantages and disadvantages.......................3TASK 4............................................................................................................................................5P5 Compare how organisations are adapting management accounting.................................5CONCLUSION ...............................................................................................................................7REFERENCES................................................................................................................................8

INTRODUCTIONManagement accounting is the process of preparing management accounts and reportswhich is related to financial and statistical information (Zoni, Dossi and Morelli, 2012). It isprepared by the accountant of the company and provide all information regarding to businessactivities. These accounts and reports presented to top management on particular time to providehelp in decision making process. To understand the concept of selected company Airdri limited,who is manufacturer hand dryer and they are recognised for low energy consumption andlongevity. This report consist of different types of management accounting system and reportswhich is used by company. Apart from analysis the use of planning tools which is used inmanagement accounting and company has adapted management accounting system in order tosolve financial problem. TASK 1P1 Different types of management accounting systemManagement accounting : It is the presentation of accounting information which isdevelop strategies and business policies to be selected by the management and conduct dailyroutine activities. As Airdi limited can use different types of management accounting systemwhich determines that company is performing as per the requirement or not. There are differenttypes of it which are as mention below: Inventory management system: An inventory management system tracks the goodsthrough entire supply chain. Airdri limited can use this system so that it can make proper recordsof the inventories. LIFO, FIFO & AVCO are the systems which are useful to manage the stock.As FIFO describes the first in first out which means those stock which are received first whenhave to be sold first. Whereas LIFO describes that last in first out which means those inventorieswhich are received last they have to be sold first. AVCO is average cost method in whichmaterial has used on average basis for the manufacturing process. As management of Airdrilimited apply these methods as per the requirement. So this system is useful for the organisationin order to manage the stock (McLaney and Atrill, 2014). Job costing system: Under this system organisation record the jobs which are performedby them as per the specification of consumers. Airdri limited use this to evaluate the cost that isinvolved in service delivering process of organisation. For the company it is very beneficial in1

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