Management Accounting : Different cost Analysis Techniques
Added on 2021-02-20
16 Pages4756 Words59 Views
MANAGEMENTACCOUNTING
Table of ContentsINTRODUCTION ..........................................................................................................................1TASK 1............................................................................................................................................1P1 Define management accounting and requirements for different kinds of managementaccounting systems.................................................................................................................1P2 Various methods used for management accounting report ..............................................3M1 Advantages of management accounting systems along with their applications inorganisational context ............................................................................................................4D1 Critical evaluation of process through which management accounting system andreporting integrates at organisational context.........................................................................5TASK 2............................................................................................................................................5P3 Measure costs by using different cost analysis techniques to prepare income statement 5M2 Use different kind of management accounting techniques to produce financial reportingdocument................................................................................................................................9D2 Prepare a financial report which appropriately apply and interpret data for differentbusiness activities...................................................................................................................9TASK 3............................................................................................................................................9P4 Advantages and disadvantages of using different kind of planning tools for budgetarycontrol ....................................................................................................................................9M3 Define the use of various planning tools and their applications to prepare and forecastbudget...................................................................................................................................10TASK 4 .........................................................................................................................................10P5 Compare how companies adapt management accounting system to respond to financialproblems...............................................................................................................................10M4 Analyse how in response with financial problems, management accounting can leads tosustainable success...............................................................................................................11D3 Various planning tools to resolve financial problemsD3 Various planning tools to resolvefinancial problems................................................................................................................12
INTRODUCTION Management accounting is referred to the procedure of evaluating business costs andoperations so that an appropriate financial report, accounts and records can be prepared in aproper manner (Evans, Burritt and Guthrie, 2013). This will benefits the manager of anorganisation to take right decisions so that business goals can be achieved in proper manner. It isa process by which costing and financial data is transformed into useful information. Thisassignment is written in context with Nero Ltd which is a medium sized enterprise operating inmanufacturing sector. Company is headquartered in London, UK. This report will cover differentmanagement accounting systems along with various methods used for management accountingreport. Also, cost analysis is performed by using absorption and marginal cost. Merits anddemerits of various planning tools for budgetary control are discussed. At last, comparison howcompany adapt management account system to deal with financial issues are also mentioned. TASK 1P1 Define management accounting and requirements for different kinds of managementaccounting systemsManagement accounting is the procedure of translating estimates of managerial accountsand data in desired knowledge so that proper guidance for decision-making can be achieved. It isrelated with recording and analysing business activities for internal organisation so that overallproductivity of company can be enhanced. Management accounting system is a specialisedsystem that is related with the integral management of organisations with the assistance of nonfinancial and financial systems (Grabner and Moers, 2013). This accounting system will benefitsbusiness firm in taking strategic decisions and plans. In case of Nero Ltd, managementaccounting system will benefits the company in managing finances of company in a desiredmanner. Different benefits of using management accounting systems are given below:Increase in efficiency: These system will benefits in increasing the efficiency of variousbusiness activities. With the help of accounting systems, main targets of company are seton planning and forecasting so that actual performance of company can be analysedproperly. Measurement of performance: It plays an essential role in evaluation of workperformance by using techniques associated with standard costings. This will benefits1
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