Management Accounting System and Reporting Methods

MANAGEMENT
ACCOUNTING
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Discuss management accounting system & proviDis essential requirements of several
kinds of MAS.........................................................................................................................3
P2 Analyse various methods used for management accounting reporting ............................4
TASK 2............................................................................................................................................5
P3 Distermine cost using techniques and cost analysis to produce income statement using
marginal & absorption costs ..................................................................................................5
1 Preparation of income statements:.......................................................................................5
TASK 3............................................................................................................................................9
P4 Critically examine benefits and limitations of various planning tools adopted for budgetory
control ....................................................................................................................................9
TASK 4............................................................................................................................................9
P5 ProviDis comparison how enterprises are adopting MAS in respond to financial issues9
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Management Accounting is an accounting branch that relates with implementation of
professional knowledge, ability, instrument and way that assist management committee in
composing and evaluation of its plans, policies, vision and the performance on the basis of the
available information of the accounting records. It aims at utilisation of its scarce resources
optimally for maximizing returns earned on it (Aslanertik and Yardımcı, 2019). In terms of
American Accounting Association (AAA), management accounting refers to the concept or the
procedure that is followed by all organisations for being successful and profitable.
This report is prepared on the scenarios of Marshall's Ltd., which was founded in the year
1880's. It is a leading supplier of superior quality of natural stones and concrete landscaping
products. It has its business operations in UK and was the first company to label its entire range.
This report covers concept of management accounting, various types of report prepared
accounting system, cost calculation various methods, budgetary tools with their advantages and
disadvantages.
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TASK 1
Discuss management accounting system & proviDis essential requirements of several kinds of
MAS
Management Accounting is a process that creates goals of an organisation by
recognising, quantifying, explicating and transmitting info. to the management is referred as
managerial or management accounting. It aims at enlightening management about the company's
performance to its managers (Balios, 2021). There are different Management Accounting
Systems, few of them are listed below:
 Cost Accounting System- This process relates with keeping record of transactions and
investigating all cost incurred (i.e. variable, semi-variable and fixed cost) that is
associated with a product or service that is manufactured of rendered by a company. It
helps managers in cost evaluation, identification of key areas of concern and taking
corrective measures for solving the issues. It is also referred as product cost system and
focuses on smoothing the process of evaluating cost of a product or service.
 Inventories Management Accounting System- It is a systematic technique that
includes ordering, storing, and managing raw material, finished goods as well as
inventory and equipment’s. The main purpose behind it is to control quality of products
manufactured and ensuring availability of appropriate stock at right time and right place
in an optimum amount so as to reduce the associated risks such as inventory shortage,
high storage costs, etc.
 Job Cost Accounting System- This is a exclusive tool that focuses on accumulating
information that is linked with all costs that relates to a specific product or service, that
are performed in accordance for meeting customer requirements. The main objective of
this system is to identify and evaluate profits and losses that are maid’s on a specific job
or manufacturing product or rendering services. It facilitates in quoting prices that helps
a firm in earning sufficient profits (Holzer and Schoenfeld, 2019).
 Prices Optimisation Accounting System- It is a tool that is mathematical in nature, and
assist in Determining all costs that are incurred by an organisation for producing a
product or providing services. It facilitates in identification of quantity of product to be
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