Management Accounting Assignment - TPG Processing
25 Pages7683 Words231 Views
Added on 2020-12-10
Management Accounting Assignment - TPG Processing
Added on 2020-12-10
ShareRelated Documents
MANAGEMENTACCOUNTING
Table of ContentsPART A...........................................................................................................................................1INTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1P1 Management Accounting Explanation..............................................................................1Roles Functions of Management accounting.........................................................................2Management Accounting System...........................................................................................2P2 Types Of Reports..............................................................................................................4D1 Critical evaluation of how management accounting is integrated within the organization5M1 Benefits of the system and their application....................................................................5CONCLUSION................................................................................................................................6PART B............................................................................................................................................6INTRODUCTION...........................................................................................................................6P3 Calculate cost using appropriate techniques of cost analysis............................................7P4 Advantage and disadvantage of different types of planning tools of budgetary control.13M3 Use of different planning tools and their application.....................................................17P5 Organisation could use management accounting to respond to financial problem.........17M4 Financial problems, management accounting can lead organisation to sustainable success..............................................................................................................................................21D3 Planning tools effectively respond to solving financial problems to lead organisation tosustainable success...............................................................................................................21CONCLUSION..............................................................................................................................21REFERENCES..............................................................................................................................22
PART AINTRODUCTIONManagement accounting is the process of preparing management reports and accountsthat provide authentic and relatable information on time (Saleem Salem Alzoubi, 2016). Theseinformation presented in financial and statical way in front of managers which is helping to makeday to day and short term decisions. It is different from financial accounting because inmanagement accounting reports and accounts are presented in front of managers on weekly andmonthly basis while in financial accounting reports are presented to investors, creditors, clientsand managers to annually basis. To understand the concept of the report selected company TPGProcessing which is related to manufacturing sector. In the report consist of explanation ofmanagement accounting and their role. Apart from report define elements of different types ofmanagement accounting system and different methods of management accounting reporting.Further, evaluation the benefits of system and integrated with organisational process. MAIN BODYP1 Management Accounting ExplanationAs per the IMA (Institute of management accountants): The management accounting maybe defined as a kind of process which is related with the decision making, planning andperformance management system in the aspect of the financial reporting. The aim of doing so, isto control the assist management in the formulation and implementation of the strategies.(Cleary, 2015). From the definition it has been understand that management accounting is continuousprocess which can help to manage performance of company in effective manner. As per the the Chartered Institute of Management Accountants (CIMA): Themanagement accounting can be defined as the process that involves measurement, accumulation,preparation and communicating the information and data which is being used by the managers tomake suitable decisions(Suprianto and et.al, 2017). As per the above definition it has been understand that in management accountinginformation include different types information which can help to assess of performance. 1
Roles Functions of Management accountingPlanning – It is important function of management accounting which can help to provideall required information and authentic data. For example – The management Accountant of TPGhas been planning about manufacturing which can help to manager regarding to short termdecision (Golyagina and Valuckas, 2016). Control – In the management sense, it has been described as the process which is part ofmanagement process. It is helping to managers to ensure about that resources to acquired andused in effective manner as well as obtain goals of an organisation. For example – Formanufacturing process use by this function by TPG processing to control activities to managebusiness in effective manner (Arnaboldi, Busco and Cuganesan, 2017) . Cost accounting – The function of cost accounting to manage information ofmanagement accounting regarding to cost of production by assessing the input costs of each stepof production. For example – TPG company can predict cost of different products which ismanufacturing in company (Florio and Leoni, 2017). Decision Making – The main role and function of management accounting to provide allnecessary information to top management. It can help to take day to day and short term decisionin effective manner. For example – for investment purpose management of TPG analysis of allfinancial information (Solovida and Latan, 2017). Financial Management – The management accountant can arrange all data andinformation which is related to financial condition. The management use financial information totake decision without any difficulty. For example – The accountant of TPG prepare report instatistical way and present in front of to management. Auditing – Management accounting play role to analysis books of company and rectify inappropriate manner. For example – On monthly basis TPG can appoint internal auditor to crossverify their books (Bernon, Cullen and Gorst, 2016) . Management Accounting SystemCost Accounting System – It is a accounting system that can that determine that acompany is doing and helps manager make decisions based on the costs of doing business. Costaccounting system mainly used by manufactures to record production activities after applyingperceptual inventory system. The particular system coordinate with other department becausethey are providing all appropriate information to evaluate cost. On the basis of these information2
set cost of different products and maintain purchase system and storage system. Through thesystem recognise management problems and try to sort out it. For example – TPG Processingfollow the system to know flexibility and simplicity in products as well as cooperation withseveral departments to gather all appropriate information. Inventory Management System – It is considering as type of management accountingsystem to manage inventory at each level of manufacturing process. There are supervising ofmanagement of stock and non capitalized asset of business. It is depending on the company thatwhich method apply by company to manage their inventories, thee methods are LIFO (Last infirst out) , FIFO (First in first out) and AVOC. The TPG processing has been applied FIFOmethod to manufacture products in order to use in sufficient manner. There are focusing on everyaspects like production to retail, warehousing to shipping and movements of the stock. Forexample TPG company apply first in first out inventory system in order to manage stocks instorage. The requirement of this system treat inventory as money, aware for regular stock tounderstand how much inventory utilise for production process. Job Costing System – In this system tracking record of manufacturing process whileprepare report of job costing. With the help of this system monitor of each activity and includeddirect material, direct labour and overhead. In TPG has been applied particular system to identifyproblem regarding to manufacturing process. They can take all detailed information to manageall thing and produce products to know management things. For example – Through this reportTPG can determine cost of different aspects (Agrawal, 2018) . The requirement of this systemthat It is categorised into different cost like direct material, direct labour and overhead expenses.There are fixed cost and variable cost are identified and use to calculate of cost.Price Optimisation System – The system has been used to control price of differentproducts and develop a effective structure which can set prices of their products. With the help ofthis system analysis of market trends and know perception of people regarding to their products.The manufacturing company TPG has been produced different types of products ans there isneed to set prices of their products. So company set price structure and analysis demand of theirproduct after that decide price of various products. For example – TPG has been producedifferent types of products and for this need to set price structure so this system has been applied.3
P2 Types Of ReportsBudget Reports – Budget managerial accounting reports plays significant role tomeasure performance of the company. It is prepare by every organisation such as smallbusiness, department wise and large organization. It is prepared by TPG processing topredict their future income and expenses and analysis business activities of eachdepartments. TPG can try to achieve their goals and objectives. It can help to manager toguide regarding to prepare plans and manage incomes and expenses to achieve goals andobjectives. Account Receivable Agin Report – It is a critical report which can use to manage cashflow in order to extend credit of customers for their business. There are most of the reportkeep separate column for invoice and its presented as 30 days, 60 days and 90 days. Withthe help of particular report identify problems regarding to collection process. In thecontext to TPG processing identify those people who can not pay on time so for collectpayment on time prepare effective strategy (Commerford and et.al, 2016).Cost Material Accounting Report – With the help of particular report compute the costof articles which is manufacturing. There are including raw material, labour andoverhead. These amounts has been categorised in produced products to realise cost ofvarious items versus their selling prices. In order to TPG identify cost of their materialafter that analyse of market trends to its products and services. Performance Report – The particular report has been developed to get review regardingto individual employee and organizational performance in reference to specificaccounting period. These types of report mainly develop by large organization becausethere is need to know about their employees skills. To evaluate the performance ofemployees applied various indicator in order to provide rewards to their employees.Job costing Report - In this report present expenses for specific project which has beenfinance by companies. With the help of this report predict about revenues then matchwith actual revenues after then analysis to know differences. The job costing report canhelp to recognise higher earning process and focus on additional efforts rather thanwasting time and money. The particular report used by TPG to know correct areas antrack to progress of report. 4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Definitions and References of Management Accounting Systemlg...
|20
|7021
|229
Management Accounting - TPG processing companylg...
|19
|5440
|100
Management Accounting - Solved Assignmentlg...
|18
|3601
|18
Management Accounting on TPG Assignmentlg...
|34
|4789
|30
Management Accounting System and Reportinglg...
|16
|4236
|95
Scope of Management Accounting: PDFlg...
|15
|4317
|96