Management Accounting: Techniques, Reporting, and Integration within Organizational Processes

Management
accounting

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
P1. Explain management accounting and give the essential requirements of different types of
management accounting systems.................................................................................................1
P2. Explain different methods used for management accounting reporting................................3
M1. Evaluate the benefits of management accounting systems and their application within an
organisational context..................................................................................................................6
Critically evaluate how management accounting systems and management accounting
reporting is integrated within organisational processes...............................................................6
TASK 2............................................................................................................................................6
P3. Calculate costs using appropriate techniques of cost analysis to prepare an income
statement using marginal and absorption costs...........................................................................6
Absorption costing...........................................................................................................................8
Flexed Budget for the actual activity...........................................................................................9
M2. Accurately apply a range of management accounting techniques and produce appropriate
financial reporting documents.....................................................................................................9
PART B.........................................................................................................................................10
P4. Explain the advantages and disadvantages of different types of planning tools used for
budgetary control.......................................................................................................................10
M3. Analyse the use of different planning tools and their application for preparing and
forecasting budgets....................................................................................................................11
PART C.........................................................................................................................................11
P5. Compare how organisations are adapting management accounting systems to respond to
financial problems.....................................................................................................................11

M4. Analyse how, in responding to financial problems, management accounting can lead
organisations to sustainable success..........................................................................................13
Evaluate how planning tools for accounting respond appropriately to solving financial
problems to lead organisations to sustainable success..............................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Managerial accountancy is the act of evaluating a company's costs and activities by creating
quarterly data such as from an income statement, a capital structure, and a monetary statement,
among others (Ahadiat, 2013). It aids the company in understanding its existing fiscal place in
the industry, on the foundation of that which managers make subsequent decisions in attempt to
attain stated aims and targets. Administration is responsible for converting accounting
transactions into material should possess so that successful policies and initiatives may be
developed. Each company, regardless of company scale, must keep its general ledger in order to
portray information to its investors in the hopes of receiving the most monetary assistance
possible. The company which is discussed in the report is Nasty Gal Vintage which is named
after a Betty David record is selling vintage clothing on eBay and also engages in a lot of
activities apart from that and thus it is very crucial to analyse and evaluate all of its aspects as it
is a company which has covered a larger market share in terms of volume and thus is very
profitable and lucrative in the industry so far. The proposal covers a wide range of managerial
accountancy techniques as well as their key needs in company operations. In particular, the
managerial type of monitoring and several accounting methodologies for determining the income
statement performance are described in this study. In addition, the study specifically explains
multiple kinds of budgeting technology to enable managers in budgeting process, as well as their
benefits and drawbacks. Besides that, all other areas of managerial accountancy in the
framework of Nasty Gal Vintage are described in this document.
PART A
P1. Explain management accounting and give the essential requirements of different types of
management accounting systems
Managerial accountancy is the amount of available knowledge to enable managers
interprets fiscal facts into relevant and reliable statistics so that successful approaches and
strategies may be developed for the improvement of a company (Alleyne and Weekes-Marshall,
2011). As a result, managerial accountancy is an important aspect of a business that helps
companies recognise their real economic presence in the world by producing yearly fiscal
statements. For this reason, administration is made responsible for performing these activities
utilizing traditional managerial accountancy methods such as pricing optimization, stock