Management Accounting of Tech Limited

Added on - 21 Jul 2020

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Management Accounting
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting Explanation and the essential of management accounting system1P2 Presenting financial information.......................................................................................3M1 Evaluation of benefits......................................................................................................5D1 Management accounting system assessment of and management reporting...................5TASK 2............................................................................................................................................5P3 Management accounting techniques:-...............................................................................5M2 Techniques and reconcile the profitability.......................................................................6D2 Interpret data for the business activities...........................................................................7TASK 3............................................................................................................................................7P4 Various budget system......................................................................................................7M3 Analysis of different planning.......................................................................................10D3 Evaluation of planning tools...........................................................................................10TASK 4..........................................................................................................................................10P5 Comparison the way of company are adapting management accounting system to respondfinancial system....................................................................................................................10CONCLUSION............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONThe process ofready to management reports and accounts that give appropriate and welltimed fiscal and statistical content needed by managers to make dailybasis decisions is termed asmanagement accounting.In this, director usage the provisions of accounting content in order toimproved inform themselves. This present report is based on Tech (UK) Limited which isproducing particular charger for mobile telephone in the UK. In this report, explanation ofmanagement accounting, their importance along with absorption and marginal costing arecovered. Other than that, benefits of different types of budgets, their process and importance arediscussed.TASK 1P1Management accounting Explanation and the essential of management accounting systemManagement accounting system is a profession which include partnering in themanagement decision making that help managers in their working and decision. Through it,managers can take their decision on daily basis. This is a process of handling the entire situationin the company. Each and every company need management accounting system to make goodenvironment in their organisation (Fullerton and Widener, 2014). They want to secure theirentire information and data of the company, so they use the management accounting for theirbusiness.Management accounting manage the entire operational work in the company. Through it,they can make some report of the company, it can be budget report, sales report, inventory reportand employees productivity report. In the financial accounting, they calculate the entire figurewhich was invested in the organisation and which will be expense in the future. Other than that,they can evaluate their profit and loss statements from the financial accounting. Managementaccounting and financial accounting system play the important role inTech (UK) Limitedcompany.Importance of management accounting information: -Management accounting play vital role in the organisation. There are lots of benefitsfrom the management accounting in the company. Through it, they can determine their aim andset the goals of the company, it helps in the preparation of plan. Through it, their employee canprovide better services to their customers. Along with this, it increases efficiency of the businessand profitability. When company uses this management, it provides them effective management1
control, so managers can take their better decision for any situation. When they will be able tomeasure performance, then they can take decision of incentives which is given to the employees.Management accounting gives this entire benefit to their managers, so it is very usefulaccounting system in the organisation. Through it, they can beat any of the competitor in themarket and will be able to earn more profit and reward from the business (Renz, 2016).Cost accounting system: -It is the important system in the management accounting system for analysis the entirecost of the company. Through it, they can examine about the cost or organisation. Other thanthat, they can have analysis about the department and employees, who is giving their best or notat their work place. Through cost accounting system, managers can control the entire expenses ofthe organisation. In the cost accounting system, they can include theinventory rating activity,cost accumulation activity, cost flow assumption, input measurement basis andability ofrecording inventory (Chenhall and Moers, 2015). These elements are very useful in theorganisation and it gives lot of information and knowledge to the managers. It is amodel utilizedby the company to figuring the value of their good for profit investigation, inventory valuationand cost control. In this system, company analyses about products or their profitability in thebusiness; other than that, they evaluate about their employees that their productivity is effectiveor not for the company. In the Tech (UK) Limited, there are different types of departments areworking and they can use cost accounting system to improve their work at their work place.Every department can evaluate the productivity of their team members, so that they can improvetheir productivity.Inventory management system: -In the Tech (UK) Limited, they need to manage their inventory and it can be managed bythe inventory management system. Through it, they can manage their entire orders of parts of themobile telephone.It is the current process of automotive pasts and good into and out of aorganization's position. When Tech (UK) Limited import or export their products, they shouldmanage their sale and purchase data in the system and all data can be saved in the inventorymanagement system.Organisations handle their stock list on a daily basis as they place neworders for goods and ship orders out to clients. Through it, managers can track end to end recordof their products and services. They can manage their warehouse from inventory system.2
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