Management Accounting Assignment - Aston Martin
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Added on 2020-12-09
Management Accounting Assignment - Aston Martin
Added on 2020-12-09
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MANAGEMENT ACCOUNTING
Table of ContentsINTRODUCTION...........................................................................................................................1ACTIVITY 1....................................................................................................................................1PART A.......................................................................................................................................1Different Types of management accounting system ..................................................................2Management Accounting Reports ..............................................................................................4Benefits of management accounting system and their application ............................................5Management accounting system and management accounting reporting is integrated withinorganisational processes..............................................................................................................6PART B.......................................................................................................................................7Annex (A)....................................................................................................................................7Annex (B)....................................................................................................................................7ACTIVITY 2....................................................................................................................................8Part A:..............................................................................................................................................8Advantages and disadvantages of different types of planning tools...........................................8Budgetary Control:......................................................................................................................9Part B:............................................................................................................................................13A comparison of how organisations are adapting management accounting systems to respondto financial problems.................................................................................................................13An analysis of how in responding to financial problems, management accounting can leadorganisation to sustainable success...........................................................................................14An evaluation of how planning tools for accounting help to solve problems and supportorganisations with sustainable success......................................................................................15CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16
INTRODUCTIONManagement Accounting is a process of develop management reports and accounts thatprovide accurate and timely financial and statical information required by managers to make dayto day and short term decisions (Yazdifar and et.al., 2012). It is internal process of anorganisation to identifying, measuring, analysing, interpreting and communicating informationwith manager regarding to organisational goals and objectives. On the basis of these informationtop management take effective and efficient decision regarding to future growth and success. It isalso known as managerial accounting and cost accounting. Management accountants are lookingaround the world which events happen related to business activities. They are considering whichtechnology and systems needed for business. The aim of the project to present role and functionof management accounts department by line manager. There is selected company Aston Martin,which is British independent manufacturer of luxury sports cars and grand tourers. It wasestablished in 1931 by Lionel martin and Robert Bamford. In the present report consist ofdifferent management accounting system which is applied on different systems, managementaccounting reports for present performance of company. There is producing a portfolio tocalculate costs through different techniques of cost analysis. In addition for financial stability andperformance apply planning tools and solving financial problems. Apart from identify merits anddemerits of planning tools and compare with other company for apply management accountingsystem. ACTIVITY 1PART AManagement Accounting Management accounting includes the financial and accounting tasks for operate abusiness as per requirement. It is a internal process which is conducted by accountants such asmonitor costs, sales, spending and budgets, conduct audits, identify past trends and predict futureneeds and assist company leaders with financial decisions. It is different from financialaccounting because in managerial accounting financial reports are preparing for managers andtop management and in financial accounting accounts and reports are prepared to presentexternal and internal stakeholders (Takeda and Boyns, 2014). Management Accounting System 1
Management accounting system consists as the internal system that is used by business toevaluate and measure its processes for the management of a company. It is focused on followingthe costs associated with the production of goods and services in a business. The system canprovide appropriate information to management for provide help in decision making process(McLean, McGovern and Davie, 2015) . Different Types of management accounting system There is mentioned different types of management accounting system which is used byorganisation, as follows - Inventory management system - Inventory management system tracks goods through the whole supply chain or the part ofit a business operates in. That covers everything from production to retail, every moment of eachstocks and parts, from warehouse to shipping. In addition, a business can observe all smallmoving parts which is related to operations and it will allow to make better decisions andinvestments. In the system work different inventory manager, they are focused on different partsof the supply chain which is starting from ordering and ending in sales. There is wide variation inscope, inventory management system also vary widely in cost. For this system used technologybecause with the help of software monitoring and maintenance of stocked products in AstonMartin. In inventory management includes assets of company, raw materials, supplies andfinished products. Hardware tools are used for read bar code labels, handled barcode scanners. Price Optimization system - Price optimization is the use of mathematical analysis which is used by company fordetermine response of customers regarding to different prices for their products and services. Thesystem also used to measure the prices that the company determines will best meet its objectiveslike maximizing operating profit (Bromiley and et.al, 2015) . It is the use of formal methods toshow structure of price that optimize a goal like profit and customer acquisition targets. Priceoptimization is important component of overall price management which is important forprofitability. Now a days it has become increasingly important because sales of products afterthat track price, it is created competitive market. In the context of Aston martin apply the systemfor know difference prices of their cars according to customer interest. Job Costing system - 2
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