Management Accounting Techniques Report

Added on - 22 Jul 2020

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Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11. Various types of accounting system and its use.....................................................................12.Several methods of accounting reporting system....................................................................2M1: Merits of using management accounting.............................................................................3D1: Critical analysis of reporting system....................................................................................3TASK 2............................................................................................................................................43. Different costing methods used to analyse profitability.........................................................4M2: Use of management accounting techniques........................................................................5D2: Analysis of income statements.............................................................................................6TASK 3............................................................................................................................................64. Use of planning tools in budgetary control............................................................................6M3: Evaluation of planning tools................................................................................................7D3: Tools used for resolving financial issues.............................................................................7TASK 4............................................................................................................................................85: Comparison with other company's in relation to solve financial issues.................................8M4: Evaluation of financial issues..............................................................................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONManagement accounting is one of the crucial aspects for any business concern whethersmall or large. Every organisation require a well systematic system that can keep record of theirfinancial transaction which is done by the company during the year. Accounting is a systematicrecording, summarising and controlling of financial entries those are perform by Zylla company.This project report consists of various task which is based on various accounting system andreporting. It also includes different costing methods that is use for the purpose of analysingprofitability of the company (Albu and Albu, 2012). Use of planning tools in budgetary controland effective use of techniques which can help in controlling financial issues. The overall projectis based on management accounting system that can help in taking effective decision regardingfuture sustainability of Zylla company.TASK 11. Various types of accounting system and its useManagement accounting is a term that covers all those aspects by which financedepartment can assist the higher authorities and other departments in the formation of policy,execution and hold of effectiveness. This point out that management is associated with primarytask of designing, execution and control of the operational activities of Zylla company. Formaking an effective decision the need of accounting information is must because on that basisposition of company is decided. A perfect data is usually accurate and risk of fallible isminimised.Management accounting play a crucial role in delivering right direction to the companyso that chances of getting more healthy profit and growth can be enhance. By analysingperformance of Zylla company critical decision are made to minimise its costs and extraexpenses. It has been notified that nature and scope of accounting system is very wide because ofits accuracy and correctiveness (Burritt, Schaltegger and Zvezdov, 2011). The primaryobjectives of managers is to make financial report more effective so that long term aim andobjectives can be attain. Company performance is affecting in that case, if the managers areusing outdated system to record financial transactions. There are various types of accountingsystem that can be helpful in controlling business operation. Such as:1
Cost accounting system:It is design which is used for the purpose of analysing cost thatzylla company is incurring in their production process. The main objectives of using this systemis to determine profitability, cost control and other aspects of costs which are incurs overdifferent activities. At the point of production, project managers uses various costs such asNormal, actual and standard cost.Inventory management system:It is one of the effective system which can be use formonitoring and controlling opening and closing stocks of a company. It is known as biggestissue for managers to manage their inventory of their own without having proper system. Inorder to identify exact position of stock they need to use ABC costing and Stock turnover ratios.Price optimisation system: It is considered as a systematic tools effectively use forstatistical planning (Cooper, Ezzamel and Qu, 2017). It is associated with critical informationin respect of price that can varies according to every unit produce. Price optimisation is helpfulin deciding which prices is more affordable for customers for their products. Company uses thisto determine the profitable and generate maximum chances for getting more effective results inreal quick time.Job costing system: It is considered as that accounting system that can use to identify every lotsize of a goods and service produce during the year. It includes product date, lot identificationnumber and so other features.2.Several methods of accounting reporting systemReporting is positing of financial transaction into the books of account so that finalstatements of a company can be made. It will consists of various crucial information related withZylla company day to day operations. Every data must be relevant and accurate beforetransferring into and statements. Because top management would make their critical decisionthrough analysing such records and entries at the time presenting it to their investors. It is knownas vital parts of corporate governance. The financial statements consists of income statements,balance sheet and cash-flows statements. Accounting is the field of finance that is concern withthe summary, reporting of regular transaction pertaining to a business. The major purpose ofusing such kind of report is to analyse and control wastage of a company which is done in theform of costs and unnecessary expenses (Fullerton, Kennedy and Widener, 2014). Themanagement and investors can take future decision on the basis of reports that are prepared byaccounts departments. After making complete overlook of such report necessary decision and2
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