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MANAGEMENT ACCOUNTING INTRODUCTION 3 TASK 13 P1 Explaining management accounting system and providing essential need of varied kind of management accounting systems

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Added on  2019-12-18

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MANAGEMENT ACCOUNTING INTRODUCTION 3 TASK 13 P1 Explaining management accounting and providing essential need of varied kind of management systems 3 P2 Varied methods utilized for management accounting system reporting 4 M1 Benefits and uses of management accounting systems4 D1 Critically evaluating the use of management accounting system and reporting within business5 TASK 25 P3 Calculation of cost using marginal and absorption costing 5 M2 Applying a range of management accounting techniques 8 D2 Producing financial reports and interpret data 9 TAS

MANAGEMENT ACCOUNTING INTRODUCTION 3 TASK 13 P1 Explaining management accounting system and providing essential need of varied kind of management accounting systems

   Added on 2019-12-18

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MANAGEMENT ACCOUNTING INTRODUCTION 3 TASK 13 P1 Explaining management accounting system and providing essential need of varied kind of management accounting systems_1
Table of ContentsINTRODUCTION................................................................................................................................3TASK 1.................................................................................................................................................3P1 Explaining management accounting and providing essential need of varied kind of management systems........................................................................................................................3P2 Varied methods utilized for management accounting system reporting......................................4M1 Benefits and uses of management accounting systems..............................................................4D1 Critically evaluating the use of management accounting system and reporting within business..........................................................................................................................................................5TASK 2.................................................................................................................................................5P3 Calculation of cost using marginal and absorption costing.........................................................5M2 Applying a range of management accounting techniques..........................................................8D2 Producing financial reports and interpret data............................................................................9TASK 3.................................................................................................................................................9P4. Explaining the advantages and disadvantages of different types of budgetary planning tool....9M3 Analyse the use of different planning tools and applications for forecasting budget...............11D3 Evaluation of the planning tools to solve financial problems...................................................12TASK 4...............................................................................................................................................12P5 Compare the adoption of management accounting system to respond financial problems......12M4 Responding financial problem through management accounting to bring success.................13CONCLUSION..................................................................................................................................13REFERENCES...................................................................................................................................142
MANAGEMENT ACCOUNTING INTRODUCTION 3 TASK 13 P1 Explaining management accounting system and providing essential need of varied kind of management accounting systems_2
INTRODUCTIONThe concept of management accounting is referred as the procedure of preparation of reportand accounts that possess the responsibility of providing suitable and timely financial and statisticalinformation which the manager need for making day to day as well as short term decisions.Management accounting plays essential role in the firm as it assist in making generation of monthlyor weekly reports for the business. Management accountant of the firm possess the responsibility tofollow all the rules in relation with accounting system. The management accounting aspect is takeninto account for collection of data that is associated with all the managerial aspects. In the presentreport small business that is being considered is Unicorn Ltd. The company is small scale retailer.The report includes essential need for varied types of management system. Further it is comprisedof several tools that can be used for management accounting system reporting. The study presentsthe advantages and disadvantages of varied kinds of planning tools that can be utilized forbudgetary control. TASK 1 P1 Explaining management accounting and providing essential need of varied kind of managementsystemsManagement accounting is referred to as the procedure of making preparation ofmanagement reports and accounts which offers accurate as well as timely financial and statisticalinformation that managers need for the sake of making day to day and short term decisions. Unlikefinancial accounting that makes production of annual reports mainly for external stakeholders,management accounting generates monthly or weekly reports in relation with business such asUnicorn internal audience. This is comprised of department managers as well as chief executiveofficer. The reports reflects the amount in relation with cash available, sales revenue generated,amount of order in hand, accounts payable, outstanding debts, raw material as well as inventory.Further it is comprised of trend charts, variance analysis and other statistics (Romano, 2015). It hasbeen assessed that financial accounting as well as cost accounting are regarded as bases ofmanagement accounting. There is presence of several kind of management accounting systems.These are enumerated in the manner as below: Traditional cost accounting: The cost accounting is regarded as one of the traditionalapproach that is utilized by several organizations. The computation such involves direct costor material, labour as well as overhead. Under such kind there is cost driver that results inoccurrence of cost like direct material hours, labour hours and machine hours. 3
MANAGEMENT ACCOUNTING INTRODUCTION 3 TASK 13 P1 Explaining management accounting system and providing essential need of varied kind of management accounting systems_3
Lean accounting: Such is considered as the new concept within management accounting thatis generally being utilized for alterations that are being made within accounting, controlling,management procedure as well as measurement of business such Unicorn (Fullerton,Kennedy and Widener, 2013). It lay emphasis on lean manufacturing as well as leanthinking. Throughput accounting: It is a kind of accounting that is comprised of determination ofconstraints in the system of production in organization. It is based upon the principle andapproach of simplified management. With respect to enhancement in the profitabilityUnicorn is supported in terms of decision making. Transfer pricing: It is the price in which movement of products and services is being done.In the calculation of cost the expenses in transfer of goods are also involved (Zimmermanand Yahya-Zadeh, 2011). Beside this there is presence certain more examples that are associated with managementaccounting system. This includes the following:Cost accounting system: Such is considered as the framework that is being utilized by theorganization towards making estimation of the cost of their products in order to makeanalysis of profitability, inventory valuation as well as cost control. Estimation of theaccurate product cost is considered crucial for the profitable operations.Job costing system: It is the system that is comprised of assigning the manufacturing costs tothe individual product or batches of products. Usually this is being utilized whenmanufacturing of the product is done in adequate manner varied from one another. Batch costing system: This is considered as the system in which the cost related withdevelopment of the product is being computed in terms of batch instead of individual item,including comparison of costs of several sized batches that is made under several conditions.Inventory management system: It is considered as supervision of non capitalized asset aswell as stock items. This is component of supply chain management that makes supervisionof the flow of the goods from manufacturers to warehouses as well as from such facilities tothe sales point. Price optimization system: It is the utilization of the mathematical analysis by the firm inorder to make determination regarding the manner in which customer would respondtowards varied prices for its products and services through varied channels. P2 Varied methods utilized for management accounting system reportingThere is presence of several methods that can be used for management accounting systemreporting. These are stated in the manner below:4
MANAGEMENT ACCOUNTING INTRODUCTION 3 TASK 13 P1 Explaining management accounting system and providing essential need of varied kind of management accounting systems_4

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