Management Accounting Tools Of Astra Zeneca | Assignment
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Added on 2020-02-12
Management Accounting Tools Of Astra Zeneca | Assignment
Added on 2020-02-12
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MANAGEMENTACCOUNTING
Table of ContentsINTRODUCTION...........................................................................................................................3P1.Explain management accounting and give the essential requirements of different types ofmanagement accounting system:.................................................................................................3P.2 Various methods used for management accounting reporting:.............................................5TASK.2............................................................................................................................................7P.3 Calculation of net profit using absorption costing and marginal costing techniques:..........7TASK.3..........................................................................................................................................11P.4 Explain the points of advantages and disadvantages of various sorts of planning toolsutilized for budgetary control in the event of Astra Zeneca: ...................................................11P.5Compare ways in which organisations could use management accounting to respond tofinancial problems.....................................................................................................................13CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16
From:MAOTO:GMSubject: To present a report to GM in which management accounting, its systems and variouscosting techniques are reported. Reporting will also be made so that implementation can be madeappropriately.INTRODUCTIONManagement accounting is an important for the development of the company. Now the policieshas been changed and there are so many management accounting tools which has been used toprovides the exact financial position of the company (Weißenberger and Angelkort, 2011).Earlier, there were traditional accounting approach had been followed by the corporate worldwhich were only related to the cost of the manufacturing goods and they were mainly focusedonly to the cost product. But now the every companies are applying the modern accountingapproach in their management accounting system. Astra Zeneca pharmaceutical company isbasically manufacture their own products and it needs to opt management accounting tools foroptimum utilizing the cost of production, and management accounting also assist the company tomake their strategy in manufacturing process so that the cost of the products can be managedwell. In this era, management accounting has become the need for running the operations andmanage the management of the companies as well. P1.Explain management accounting and give the essential requirements of different types ofmanagement accounting system:Management accounting is the process by which the financial reports and the accounts ofthe company has been prepared and also assist to provide the accurate information for thecompany so that the exact picture of the company can be shown in front of general public andthe investors could also take the help from those reports. Financial accounting is quite differentfrom the management accounting and and that will provide the information to the outsiders byanalysing the company's data(Ward, 2012). Management accounting only concerned to make theinternal reports for the divisional managers and also to the chief executive officer of thecompany. Such kind of report are used fro displaying the amount of cash, sales revenue created,amount of orders in hands, amount of available cash, raw material stock, etc. managers or theaccountants apply the accounting informations for the effective decision making management
accounting performs in the areas of strategic management, performance management and riskmanagement.These have been discussed below in details:Strategic management: management accounting assist the management of the company tohelps for making the strategy for the betterment of the company's' growth anddevelopment. Performance management: management accounting assist the company to improve thecompany's performance by way of following management accounting practices. Risk management: risk can be managed with the help of management accountingtechniques(Van Helden and et. al., 2010). Management accounting assist the company tomake the management to make the policies for handling the risk in a better way so thatthe firm would able to attain the objectives. There are some any methodologies by which company can do the managementaccounting practices in the firm : Cost accounting system: This is the accounting system under which cost is evaluated sothat this can reduce by the manufacturing company. Now, this also been seen that is is connectedwith the process of gathering, recording and analysing of various costs that are connected to thecost of production. The key role of such system is to make render managers essential informationwhich are based on the cost efficiency and performance capabilities.Price optimisation system: This is presumed to be the numerical analysis by a firm topredict how customers would react to several prices for its products and services via so manymodes. The main aim of Astra-geneca is to identify the price which would meet its aims like asto enhance operating profits throughout the year.Job costing system: Under this system, this is concerned to the process via whichdetermination of assigning costs which are covered on a most specific jobs under which a firm isconcerned with.Batch costing system: This is same as job costing under which a lot of product isconsidered. It is an simplest form to determine goods with its number. Whole information relatedto goods like production date, time and year are covered under this.Notwithstanding, there are different sorts of management accounting procedures whichare required in the company. Firms today confront the issues of how to change their systems,
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