Management Accounting of Unicorn Grocery : Case Study
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Added on 2020-01-16
Management Accounting of Unicorn Grocery : Case Study
Added on 2020-01-16
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MANAGEMENTACCOUNTING
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 Explanation of management accounting and essential requirements of different type ofmanagement accounting system ............................................................................................3M1 Evaluation the benefits of management accounting system and it's application in theorganisation............................................................................................................................5P2 Explanation of different methods used for management accounting reporting ...............6D1 Critical evaluation of management accounting system and management accountingreporting is integrated with in the organisational process......................................................8TASK 2 ...........................................................................................................................................8P3 Calculation costs using appropriate techniques of cost analysis to prepare an incomestatements of marginal and absorption costing......................................................................8M2 Accurately application of a range of management accounting techniques and produceappropriate financial reporting documents...........................................................................11D2 Financial report of the organisation with accuracy and proper interpretation of data relatedto business activities ............................................................................................................11TASK 3..........................................................................................................................................11P4 Explanation of the advantages and disadvantages of different types of planing tools usedfor budgetary control............................................................................................................11M 3 Use of various planning tools.......................................................................................14D3 Evaluation of planning tools for accounting respond appropriately to solving financialproblems to lead organisation to sustainable success...........................................................15P5 & M4 How can Unicorn Grocery can utilize management accounting methods to managefinancial stability..................................................................................................................15CONCLUSION .............................................................................................................................18REFERENCES..............................................................................................................................19
REPORTFrom: Management AccountingTo : General ManagerSubject: To write a report to GM covering management accounting and management accountingsystem together with different costings techniques and reporting to enable the organisation toimplement them. INTRODUCTIONUse of managerial theories and models of financial accounting in a business model whichcan increase their productivity and as well as their output by which they can attain targetseffectively (Kaplan and Atkinson, 2015). Financial methods can help to a company to attain afinancial stability in their trade and financial activities, which can increase their grip on themarket. Managerial theories can improve the management grip on the employees. Thesetechniques and methods are having the potential to provide stability in the market by gainingrevenues. Planning is an important factor to run a business successfully so organisation have tomake proper budget to allocate their financial resources according to expenditures. The belowpresented report is based on the Unicorn Grocery which are having total turnover under£500,000 and less than 50 employees are working in the organisation. It is a grocery store whichis working in the retail sector and it's owners are managing employees in the organisation. In thisreport, it is having details on the different type of management accounting methods and systemwhich can use by the Unicorn Grocery. Calculation is an essential part for the owners to withusing of appropriate techniques to analyse the cost of products, owners have to be focused on theeffective cost management. Organisation can use different types of planning tools which can helpthem in to budgetary control (Macintosh and Quattrone, 2010). At the last this report is havingcontent on the adaption of management accounting system to resolve their financial problemsand issues. TASK 1P1 Explanation of management accounting and essential requirements of different type ofmanagement accounting system Management accounting is related to the use of financial data in to the managementtheories which can improve the managerial decisions which are take by the management.
Mixture of the management principles and financial accounting can help to the Unicorn Groceryto improve the management and as well as the financial decisions. It can help to the organisationto make a proper allocation of the funds, as they are having limited funds and scope because theyare a small business enterprise so it is essential for them to manage their business (Simons,2013). As an organisation haves a different teams which supports to the company to attain theirbusiness objectives by their combine efforts. These financial data helps to the management toanalyse that which team is performing better according to the expenditure and investment onthem. It can help to the management and leaders analyse the potentials of the team which areworking in the organisation and as well as to know what kind of improvements and changes theyhave to made in that team to manage expenditures according to the budgets (Ward, 2012). It canhelps to the company to enhance their annual profits and revenues. It can increase theeffectiveness of the teams which are working in the organisations which can helps to themanagers and leaders to increase the profitability. Financial management is based on thebudgeting which emphasise on the allocation of the financial resources in the teams which areworking in the company. As the Unicorn Grocery is a small scale business entity, they are havinglimited scope to generate revenues and as well as they are having limited resources of finance soit is essential for them to keep their expenditures and business activities as per the budget.Budgeting methods are having the potentials for estimate and forecast the future businessinvestment and operations which can be profitable for them. By this management can easilyestimate their business needs and as well as input cost which can increase their profits after atime of period (Renz, 2016). Business decisions which have to be taken by the owners in theUnicorn Grocery can be effective by using management accounting and budgeting system. Management accounting is divided in to different types which helps to the organisation toselect a suitable type for them. These management accounting systems are having their differenttypes of requirement which are described under here; Traditional accounting techniques: It is related to the traditional method of accounting which isbased on the cost which is associated with the productivity of the different teams which areworking in the organisation. Expenses which are related to the team have to be calculated on thereliable basis. It is used by the business entities which are having small structure in theorganisation and as well as which has less financial generators. It has a requirement job order
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