Introduction: In this assignment, a report shall be presented to the general manager regarding various aspects of the functioning of management accounting in the organization. The various aspects of management accounting in the organization shall be analyzed and a detailed report shall be presented to the manager that is general manager. For the convenience of the study, the organization, Palmer and Harvey has been chosen for the study. The study further shall relate to management accounting and management accounting system together with different costing techniques and reporting to enable the organization implement them and get positive desired results. The organization has been the fifth largest privately owned business organization the land of UK and it is mainly related to the business of wholesale marketing, distribution and retail marketing.The companywasfirst establishedasa confectionaryand tobaccosupplying company and later it, extended all of its business activities over the whole of United Kingdom’s. Task 1 Explanation of management accounting and giving the essential requirements of different types of management accounting systems to the chosen scenario: Management accounting is a tool by which the firm can obtain several accounting activities and financial tasks during the accounting year. The management accounting acts as a tool, which provides several information regarding to the organisational activities during the year to the managers and accountants of the firm. Thus, it can be stated that the firm v can obtain several aspects regarding to the enhancement of the accounting activities of the form. The management accounting also demonstrates the methods by which the firm may obtain the accounting records during the financial year. The organisational loopholes, financial issues, marketing drawbacks are the primary aspects that are being observed by the management department of the firm (Zimmerman and Yahya-Zadeh, 2011). The financial and nonfinancial information are analysed and observed by the management accounting during the accounting year and the firm obtains several marketing decisions and strategies in order to enhance the financial strengths of the firm. Page3of16
The management accounting system mainly consists of several accounting systems, which are to be identified and explained for the proper performances of the firm's financial activities during the accounting year (Herbert and Seal, 2012). Lean accounting system: The Leanaccountingsystem ismainlyobtained by the lean organisationsin the international market. The accounting method is mainly beneficial for the reconstruction of the financial structures of the firm during the accounting year. It is also to be mentionedthattheaccountingmethodsasprovidessupporttotheorganisational authorities during the year in order to overcome the tough financial conditions. The aggregate capacity and abilities of the firm can be developed by the accounting system. The marketing issues and financial obstruction can be dealt with the help of the accounting system. It is also to be mentioned that the firm can obtain the accounting systems and techniques in order to enhance the revenues and flexibility to firm's accounting methods and practices (Macintosh and Quattrone, 2010). Traditional accounting system: The accounting system is known to be the oldest accounting method in the management accounting history. It is to be stated that the accounting system is also the mostly accepted among the organisations in the international market. As the accounting system does not consists of many complications and multiple adjustment of accounts it is commonly accepted by the organisations among the year. The accounting methods are mostly accustomed among the accounting organizations and thus it can be stated that the accounting organisations may obtain several other advanced accounting system, however traditional accounting system will also be the primary base to start of the accounting activities (Pipan and Czarniawska, 2010). Throughput accounting: The accounting system is developed from the basics of the cost accounting system. The accounting system can be utilised in different aspects of the firm and the benefits can be obtained by the firm from the accomplishment of accounting tasks done by the help of the accounting system. It is also to be stated that the accounting system can generate several accounting and organisational information by which the fi5rm can obtain several accounting decisions that will be beneficial for the firm's accounting and financial Page4of16
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