Management Accounting: Types of Systems, Cost Analysis Techniques, and Planning Tools

Management Accounting

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Types of management accounting system with its essential requirements...........................1
P2: Methods used for management accounting reporting............................................................3
M1: Benefits and application of management accounting system...............................................4
D1: Evaluation of integration of management accounting reports and system with
organisational processes...............................................................................................................5
TASK 2............................................................................................................................................5
P3: Techniques of cost analysis for preparing income statement by using absorption and
marginal costing...........................................................................................................................5
M2: Applying a range of management accounting techniques ...................................................6
D2: Applying and interpreting data for varied business activities...............................................7
TASK 3............................................................................................................................................7
P4: Advantages and disadvantages of different types of planning tools used for budgetary
control..........................................................................................................................................7
M3: Uses and application of planning tools in preparing and forecasting budgets.....................9
TASK 4............................................................................................................................................9
P5: Comparison between companies on adoption of management accounting system for
responding financial problems.....................................................................................................9
M4: Analysing how management accounting approaches can lead an organisation towards
sustainable success.....................................................................................................................11
D3: Evaluating how planning tools responds to financial problems while leading organisation
towards attaining success...........................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Management accounting is a technique used by organisations to prepare varied reports
about differential business operations. It primarily assists an establishment analysing and
interpreting communication channels in order to provide required information to decision-
makers. Nasty Gal Vintage, an American clothing retail company is taken into consideration for
better understanding the concept of management accounting, its principles and its implications in
business operations. Nasty Gal Vintage is founded in 2006 and has its headquarter at California.
United States of America.
This project illustrates a finer understanding of management accounting system and its
necessities in implementing planning tools in organisation. This project includes varied
techniques of analysing cost which helps company in preparation of income statement. This
project also provides the ways in which company uses management accounting in order to solve
financial problems. It also depicts varied advantages and disadvantages for planning of
budgetary control.
TASK 1
P1: Types of management accounting system with its essential requirements
Management accounting is an exercise that essentially focuses on identifying and
evaluating organisational objectives in order to communicate differential financial and non-
financial data to top management of organisation (Astuty and Pasaribu, 2021). Managers can use
this information preparing differential budgets and performance reports. Management accounting
is far more different concept than preparation of financial statements. Key difference between
them is that former is prepared in connection to internal processes while latter is drawn up for
external entities like shareholders. It essentially helps in forecasting future trends and cash flows
of business operations which further aids mangers in creation of budgets. Management
accounting system is a technique of controlling and influencing employees as well as various
costs which are essential for attaining organisational goals (Bedford and Speklé, 2018). Effective
implementation of management accounting system in Nasty Gal Vintage is beneficial as it
provides differential insights which is helpful in decision-making and planning processes. By use
of this, accountants provides charts, tables and flowcharts which made the decision-making
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