Management Accounting: Concepts, Techniques, and Tools

Management
Accounting.

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Task 1...............................................................................................................................................1
P1. Explain the concept of management accounting along with highlight essential requirement
of different types of management accounting system............................................................1
P2. Explain different methods used for management accounting reporting..........................3
Task 2...............................................................................................................................................4
P3. Calculation of costs by using appropriate techniques......................................................4
TASK 3............................................................................................................................................6
P4: Advantages and Disadvantages of planning tools for budgetary control.........................6
TASK 4............................................................................................................................................6
P5: Comparison of organizations on the basis of adoption of management accounting systems
to solve financial problems.....................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Management Accounting refers to use of various type of accounting provisions tools as well
as techniques in order to ensure that right decision is taken by top level management for
managers for or the purpose on which the overall efficiency and effectiveness with an
organisation issues can overcome (Abdusalomova., 2020). As the practice of management
accounting is very beneficial it helps to ensure for taking a right decision on behalf of company.
From this way accompany e make assure what whatever the strategies they applied must
generate some sort of positive outcome which helps to make there's such table growth in market.
In this following report the company has been selected innocent drinks which is small
medium Enterprise in UK. Innocent Drinks company manufacture soft drinks and smoothies to
sold in supermarket the product line up are coffee and various other outlets stop the company is
based on food and beverages industry and they usually sell more than 2 millions who is per week
(Akinbowale,, Klingelhöfer and Zerihun, 2020). The topic which covers in report about better
understanding of Management Accounting system post off apply different range of Management
Accounting techniques along with using of planning tools in Management Accounting. Compare
ways in which company can use Management Accounting techniques to respond their financial
problem. .
MAIN BODY
Task 1
P1. Explain the concept of management accounting along with highlight essential requirement of
different types of management accounting system.
The concept of management accounting is comprise about uses of different types of tools and
techniques which are related to accounting it helps to attain proper goals and objectives behalf of
organisation. Goals and objective which operation without issues and problem at the right
decisions can be taken through the top level of management.
There are different system which can utilise in Management Accounting are elaborates in
followings:
Cost accounting system- According to the system manager make sure that they are able to use
their right form of technique or strategies in order to control the overall cost and overhead
transactions in the organisation. In the perspective of innocent drinks company they can use this
1

accounting system actively on the basis of making the right manner of decision to achieve their
goals and objectives.
Some of the essential requirements for this cost accounting system are followings:
 As cost accounting system should be able to reduce the overall cost organisation.
According to this way the practice of cost accounting system can help the manager of
innocent drinks company to maximize their level of profitability.
 To the cost accounting system also must ensure that overhead which company is bearing
are mitigate properly (Balstad and Berg., 2020). To constantly doing this practice has to
the top level management of innocent rings company to better optimisation of their
product or services cost.
Inventory Management System-. In this system, responsibility of manager as well as they need
to make sure that are they able to properly handle overall inventory and other operation work in
organisation measure the systematic manner or not (Chaudhry and Amir, 2020). Perspective of
innocent drink company manager their main role is to measure that every inventory or stock
must be optimised and manage as per the requirement of company context. Some essential
requirement for inventory management system are:
 Through inventory management system it must ensure that the Inventory of concern
organisation properly manage so that orders are tracked in a right manner. This tracking
system of managing of inventory master record to the anus and drink managers in a
compliance oriented process.
 Inventory management system also must confirm that the level of of inventory within a
company is highly standard so they should not any issue or problem which place time of
supply goods and services. Therefore manager of innocent drinks must have concern for
this practice.
Job Costing system: The job costing system test primary used within organisation at the time of
manufacturing of goods and service in order. Situation of ordering goods and services innocent
drinks company managers can use this system to timely in completion their job costing.
Essential requirement;
2