Management Accounting Assignment - Unicorn grocery

MANAGEMENT
ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Management accounting and various kinds of management accounting systems.................1
M1 Benefits of management accounting systems and their applications...................................4
D1 Evaluation of various reporting method and accounting system integration........................5
TASK 2............................................................................................................................................5
P3 Techniques of cost analysis to develop income statement using adsorption and marginal
costing.........................................................................................................................................5
M2 Various types of accounting tools and techniques................................................................7
D2 Analysis of data collected from income statement................................................................8
TASK 3............................................................................................................................................8
P4 Advantages and Disadvantages of using planning tools used in budgetary control..............8
M3 Use of different planning tools and their applications........................................................10
TASK 4..........................................................................................................................................10
P5 Comparison with other organisation to overcome financial issues.....................................10
M4 Analysis of planning tools to deal with financial issues.....................................................12
D3 Planning tools for responding to financial issues................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Management accounting is a process of preparing the management accounts as well as
reports that helps in provide the timely and accurate financial information needed through
managers. Under this managers use provisions of the accounting information in context to better
inform before they decide the matters with in company. It will be helpful for managers to control
all functions of company. It is procedure of examining cost of operations and business to prepare
an internal financial report, account and reports to help the process of decision making of
managers in attaining specific aims. This present report is based on Unicorn grocery and it is co-
operative grocery store and sells processed and dried food, body care, household and also
grocery products (Kaplan and Atkinson, 2015). Under this mention report will be discuss about
the management accounting and various kinds of management accounting system. There will be
discuss about the costs using effective cost analysis techniques to develop the effective income
statement by using the absorption and marginal costs.
TASK 1
P1 Management accounting and various kinds of management accounting systems
Management Accounting is also called managerial accounting. It is the process of
preparation of management reports and accounts which provide help to the managers for
statistical and financial information of company to take better decisions.
According to Institute of Management Accountants(IMA),
Management accounting is a profession which involves partners to make management
decision, performance management system and devising planning. It provide assistance in
financial reporting and control of management for the formulation and implementation of
company's strategy (Hilton and Platt, 2013).
Management accounting system is the way of evaluation and measure of its process for
the management within the organisation. It is also called internal system of the company.
Origin of management accounting- Management Accounting is an important activity
which is emerged during early industrial revolution. It arose after financial accounting. It is
considered as an recognised field.
Role and Principle
1

The role and principles of management accounting as per the context of Unicorn Grocery
are as follow:
Influence- It helps in better communication which improves decision making. It ensures
effective thinking and decision.
Relevance- Management accounting considers all the relevant information that helps in
decision making and enhance quality.
Value Generation- It analysis all the necessary information along with value generation.
It includes analysing the information with value generation path (Otley and Emmanuel, 2013).
Trust-Trust is very important for the organisation. The process of accounting are ethical,
skilful and accountable which makes objective and process clear.
Here, Unicorn grocery should follow all the above roles and principle to make the
accounting accurate and liable.
Distinction between management and financial accounting
The differences between management and financial accounting are:
Basis for Comparison Management Accounting Financial Accounting
Meaning The accounting which helps in
providing information for
making policies, strategies,
plan for the business by
manager is called management
accounting.
The financial statement which
provide information related
with finance is called financial
accounting.
Time frame According to the need and
requirement such report is
prepared.
It is made at the end of each
accounting year. It is prepared
once in a year.
Information Both information (monetary
and non-monetary)
Only monetary information
Publishing and auditing These are not published and
audited by auditors.
These are published and
audited by auditors.
Different types of management accounting system
2