Management Accounting: Techniques, Systems, and Reporting

Management Accounting
Contents
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Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
1.1Explanation of managing accounting and give the essential requirements of various types
of managing accounting systems.................................................................................................3
1.2 Explanation of different techniques used for managing accounting reporting.....................4
1.3 Benefits of management accounting systems and their application within The London
College.........................................................................................................................................5
1.4Critically evaluation of how managing accounting system and managing accounting is
included within organisational processes....................................................................................6
PART 2............................................................................................................................................7
2.1. Calculation of the costs using appropriate techniques of cost analysis to prepare an income
statement using marginal and absorption costs...........................................................................7
2.2. Accurately apply a range of management accounting techniques and produce a financial
reporting document......................................................................................................................8
2.3 Financial reports that accurately apply and interpret data for a range of business activities.
...................................................................................................................................................12
TASK 3..........................................................................................................................................12
3.1 Explanation of the purpose of budget and prepare different budget (listed at the end) with
the given information for coming months.................................................................................12
TASK 4..........................................................................................................................................18
4.1 Uses of management accounting system to respond financial problems............................18
4.3. Evaluate the planning tools used in management accounting to reduce the financial
problems to achieve success......................................................................................................20
CONCLUSION..............................................................................................................................21
REFRENCES.................................................................................................................................22
From books and journals...............................................................................................................22
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INTRODUCTION
Management accounting , it is a procedure of representing accounting information in a way
through which manger able to take effect decision which help in generating gain and able
origination to solve all the problems suffering from past ear. To understand this concept, UCK
Furniture has been taken which is situated in UK and have proved effective furniture services to
their clients. In this report uses of effective planning tools to formulate policies and strategies has
been define briefly. This report also includes the way mangers solve financial pr by using
management accounting technique and system of management accounting in brief manner.
PART 1
1.1Explanation of managing accounting and give the essential requirements of various types of
managing accounting systems
Management accounting: This word play an important in accounting felid. Management
accounting is a way which helps in decision making procedure. Manager of the organization
record their financial transaction in systematic way, through which they interpreted
accounting information in front of internal customers of the business entity. It is a combined
processed of accounting and management activity in which organization record their
transaction by using effective management strategies which help in take better decision for
the organization (Maas, Schaltegger and Crutzen, 2016).
Job order costing system: This system of management accounting use in taking decision
regarding every job order. It will help in determining the stock order. With the use of job
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costing system manger will be able it identify the cost value of materials of business
organization.
Price optimization system: This system of management accounting is developed within the
business organization for take decision regarding the price value of product and serves of
offering by business entities. There will be many techniques of price optimization system,
price skimming, discounted price policy, price premium. In all these policies the value of
price are determine on different methods. It is the choice of mangers which policy they use
for their organization which issue able for them ((Qu, and et.al2017)).
Inventory management system: It is also known as stock management system. In this
system various tools of inventory management are used by organization through which they
can identify the level of stock, requirement of purchase material, number of operating cycle
required time taken during delivery of product . With the use of EOQ and JIT technologies
manger can calculate the cost of maintain inventory and reduce on reducing it by effective
management policies.
Cost management system: It is one of the most useful systems in management accounting
process. As the name suggest this system is apply by business organizations in order to
recognized cost of every element of production process. They use standard costing marginal
costing process costing method through which organization easily recognized the cost of
each business transitions. They identify the relation of profit and expenses the rate of
profitability and mange all the elements of cost in systematic way. This system is apply with
every types of business organization. The London College at this organization cost
management system is utilized to identifying the overall cost of each and every business
activity required to run the college.
1.2 Explanation of different techniques used for managing accounting reporting
In management accounting branch managers prepared various types of reporting which
help in recording transactions in effective way. Following are the types of management
accounting reports use by The London College
Account receivables report: With the use of account receivable report manger identify the
numbers of debtors which are not able to pay their liabilities. It is made by finance
department of the organization. It will help in financed nonperforming assets and provide
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direction to mangers through which they can able to collect their money in short period of
time.
Performance report: It is formatted n order to determine all the essential aspect
performance of the business cooperation. Managers formulate performance report for take
decision regarding incentives on the basis of evolution of performance of employers by using
this report.
Stock management report: Just lay other reports it is prepared for running specific function.
This report is build with the data collection from inventory management techniques.
Budget reports: Business Corporation’s use budget reports as it provides base for the
preparation of budget statement. This report proceeds information regarding future business
income and expenses and cost, time required to fulfil the target of business
1.3 Benefits of management accounting systems and their application within The London
College
Inventory management system This system is used for The London College to
collect information regarding material used in
the process of manufacturing and supplying
goods. In context with The London College it
is provides education facility and it is essential
to maintain data of each equipment, material
use during the process of providing services.
Job order system This system is applied by the mangers of the
London College to record all the order of
students admission, counselling, research
events organize within the college
Price optimization system It is most useful system, Manager of
The London College decide fee structure of
different department of students on the basis of
resources optimization system.
Cost accounting system With the use of cost accounting system
mangers able to adopt effective cost technique
to acquired the cost of every procedure started
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with purchasing of raw material to distinctive
of service and products by The London
College
1.4Critically evaluation of how managing accounting system and managing accounting is
included within organisational processes.
Management accounting system and reports of this accounting branch both used by mangers
in integrated way. With the adoption of cost, inventory system they record all the transaction
and manger of The London College use these record as a base to formulate account receive,
budgeting and performance report. These reports help in decision making process regarding
future business events conduct in The London College (Yu, 2015).
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