Project on Management Accounting Aspects
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Added on 2020-07-23
Project on Management Accounting Aspects
Added on 2020-07-23
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Management Accounting
TABLE OF CONTENTSTable of Contents.............................................................................................................................2INTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Definition of management accounting and their essential requirements.........................1M1: Benefits of using management accounting systems.......................................................3P2: Various types of accounting reporting methods...............................................................3D1: Critical analysis of accounting report systems................................................................4TASK 2............................................................................................................................................4P3: Various kind of costing method used for calculating net profit.......................................4M2: Analysis of various accounting techniques....................................................................7D2: Critical evaluation of information about incomes statement...........................................8TASK 3............................................................................................................................................8P4: Merits and demerits of various types of budgets.............................................................8M3: Analysis of various planning tools................................................................................10D3: Critical analysis of financial issues...............................................................................10TASK 4..........................................................................................................................................11P5: Comparison of various ways a company used to deal with financial issues..................11M4: Evaluation of financial issues.......................................................................................11Conclusion.....................................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONThis project is all about providing crucial information about various managementaccounting aspects those are associated with an organisation. It is utmost vital part of anybusiness to record all their financial transactions in their respective statements so that valuableoutcomes can be determined effectively. The primary motive of an organisation is to makeproper utilisation of resources which are helpful for the company to attain long term aims andobjectives in quicker manner. This project is providing valuable perspective about types ofaccounting and reporting systems. Apart from this, certain types of costing methods are taken ashelp to calculate net profit for the company. Although merits and demerits of using types ofbudget that are helpful for attaining future goals in near future. Lastly, some vital financial toolsare used that are effectively responsible for resolving financial issues those are arising in anorganisation (Hilton and Platt, 2013).TASK 1P1: Definition of management accounting and their essential requirementsIn the current scenario, it has been seen that management is always looking to make useof all those systems that are effectively reliable to record all financial and non-financialtransaction in their respective statements accurately. Accounting is said to systematic process ofrecording, summarising and evaluating everyday transactions that are done by the companyduring their regular course of operations. It is an important aspect that the objectives of thefinancial accounting are not to study the worth of company. This used to reveals gain or loss fora given period of time and value of Tech (UK) total assets and owners equity. Management usedto provide vital aspects related with planning, organising, controlling and directing allinformation’s in effective manner (Wickramasinghe and Alawattage, 2012).Definition: It is said to be cost accounting process which is used to analyse business totalcost and operations to formulate internal financial reporting and account to aid manager’sdecision making procedure in respect to attain their aims and objectives. Management accounting systems are known as confidential internal report that assistsmanagers in future decision-making. It used to guide employees and managers that workinginside an organisation.Importance of using MA:1
There are various significant aspects those are related with management accountingsystems. Some of them are discussed underneath:Effective decision-making: It is one of the primary systems for an organisation by whichthey can easily be able to attain their objective by setting appropriate decision in nearfuture time. It has been determine that if company used to make effective decision thenthe chances of getting better results can be enhanced.Increase profitability: A health business can only attain positive outcomes in case theyare using valuable accounting systems in right manner. This will directly increaseprofitability as the company would be able to sell maximum products (Schäffer, 2013).Management accounting Financial accountingIt is held responsible for making valuable rulesand regulations that The accountant needs to follow all thosepolicies and laws that are made by upper levelof the department.The individual is not having any kind of issues,apart for this they need to decide companiesoverall operations by using performance ofTech UK.All the statements that are prepared during anaccounting year are reported in more particularmanner by using financial data of the company.Types of management accounting system:Cost accounting system: It is known as one of the most important aspects for an organisation thatis held important for recording, summaring and determining valuable alternative that areeffective for Tech UK. The major significance of this system is to delivery crucial advices totheir department about one of the major course of actions that are assistance with the cost ofproduction.Inventory management system: According to this particular system that assist managers tomake use and control stocks those are kept by the company. It seems to continuous process forthe aims to manager inventories of Tech UK. There are various types of techniques by whichstock can be managed such as FIFO, LIFO and AVCO methods.Job costing system: It is an essential aspect for an organisation that is used for makingestimation of total expenses and costs a company is incurring on production of products or groupof product. Through this, managers would be able to generate valuable outcomes for thecompany. The total time a product is taking to manufacture are determining by using thisparticular report.2
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