Introduction to Management Accounting

Management Accounting

Table of Contents
Introduction......................................................................................................................................1
TASK 1............................................................................................................................................1
P1: Management accounting and different kind of management accounting system..................1
P2: Different types of management accounting reporting. ........................................................2
TASK 2............................................................................................................................................4
P3: Produce income statement by using marginal or absorption costing method.......................4
TASK 3............................................................................................................................................6
P4. Planning tools for budgetary control ....................................................................................6
TASK 4............................................................................................................................................9
P5: Define financial problem and comparison different organisation by masking the use of
management accounting system..................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

Introduction
In the current business world the biggest shortcomings for businesses is proper
information availability at the right time with relevant data. Management accounting has evolved
over the years since its inception into a broad fundamental system of providing critical financial
information related to business to the management body(Adler, R., 2013). This information helps
the management in interpreting financial performance, profitability, market value, and future
decision-making for the firm. This report includes a study on management accounting, its tools
and techniques, processes, systems and organisational influence taking Oshodi PLC, a
manufacturing firm engaged in production of JOJO fruit juice.
TASK 1
P1: Management accounting and different kind of management accounting system.
Management Accounting: It is a fundamental principle of preparing financial and non
financial statements of the business to aid the management body in decision making and strategic
planning for the future endeavours. It is an internal management principle as opposed to the
financial accounting which is an external principle (Altman and et. al. 1979). It deals with
preparing business reports, data and statements in an accurate format for the business managers
to be used by them to analyse the functioning of the business, analyse its profitability position
and plan for the future based on the insights drawn from past evaluations. Oshodi PLC analysts
has acquired an efficient system of reporting critical information to the managers using its
internal systems.
Management Accounting systems: Management accounting systems are cohesive
collaboration of various integral systems which as a complex whole makes it a theory (Kaplan,
R.S. and Atkinson, A.A., 2015). These systems provides sectoral information which has
individual characteristics and importance. Based on the reports generated by these systems, the
management body of Oshodi PLC is able to take some serious decision about the adaptation of
new business policies and practices. The cardinal systems used by Oshodi plc are as follows: