Management Accounting and Essential Requirements of Systems

Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Management accounting and essential requirements of systems...........................................1
P2 Management accounting reporting.........................................................................................3
M1: Benefit of management accounting systems and its application..........................................3
D1: Integration of system of management accounting & reporting of organisation process......4
TASK 2............................................................................................................................................5
P3: Cost analysis techniques........................................................................................................5
M2:Applying wider management accounting techniques...........................................................9
D2: Application & reading of financial reports:..........................................................................9
TASK 3..........................................................................................................................................10
P4: Planning tools......................................................................................................................10
M3: Analysis of planning tools..................................................................................................11
TASK 4..........................................................................................................................................11
P5: Financial problems and solutions........................................................................................11
M4 : Analysing the financial problems and management accounting.......................................14
D3: Evaluation of use of planning tools for dealing with accounting issues.............................14
CONCLUSION..............................................................................................................................14
REFERENCE................................................................................................................................15

INTRODUCTION
Management accounts is regarded as a function which includes collection of data,
analysing the data collected and then reporting of the collected information. It helps in managing
the financial resources of a organisation (Maas, Schaltegger and Crutzen, 2016). Present report
deals with with Innocent Drinks that is offering products like smoothies, juices that are offered in
supermarkets, coffee shops, cafes and such type of outlets. They are able to sale approximately 2
million smoothies each week. There is discussion of management accounting system & different
types of methods that are used for accounting purposes. There is a critical analysis of budgetary
control and further comparison is made on the way organisation are willing to adapt system of
management accounting.
TASK 1
P1 Management accounting and essential requirements of systems
According to institute of management accountants (IMA) Management accounting is
described as a profession that consist of partnering with decision planning, management decision
making, performance management system and offering expertise of financial reporting (Uyar
and Kuzey, 2016). All this is used to assist in controlling and further formulation &
implementation of strategy of a organization.
According to chartered institute of management Accountants, London cost is defined as
the amount of expenditure both notional and actual that is attributable or incurred on a particular
activity or a thing.
Evolution, Role and principles: Management accounting concept was evolved in the
period of 1900s in order to guide and serve strategic directions to business. Key role of
management accounting is to serve major requirements to internal managers so to devise rational
decisions for organisational betterment. Principle of Analogy and Principle of Causality are two
principles of the concept that all types of businesses adhere.
Management accounting vs Financial accounting: In Innocent Drinks, management
accounting comprises internal systems which are essential to measure together with evaluate
processes for venture management. In contrary, approach of financial accounting provides
information to extrinsic parties such as creditors, stockholders and so on.
Management accounting systems are mentioned below:
1