Management Accounting of R. L. Maynard Ltd : Report

Management Accounting

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P1. Definition of management accounting and necessary needs of management accounting
systems...................................................................................................................................1
P2. Methods for management accounting reporting...............................................................3
P3 Cost analysis to prepare an P&L by marginal and absorption costs for R. L. Maynard Ltd 6
Difference among two techniques of MA used t prepare income statements........................7
Task 3...............................................................................................................................................8
P4 Various Strategies techniques used for budgetary control and Advantages and
disadvantages within R. L. Maynard Ltd..............................................................................8
Task 4...............................................................................................................................................9
P5 Comparing method through which systems of management accounting used by combating
financial problems..................................................................................................................9
Conclusion.....................................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Management accounting provides information of accounting to managers within
companies. It is to give company with the base for make informed enterprise conclusion that will
permit organisation to be healthier equip in their direction and power functions. This is the
activity of ready accounts and management reports and gives straight report by managers to
make daily and little period decisions. This present report based on R. L. Maynard Ltd. which
was registered on 22nd March 1973 with construction business. There are 20-49 employees
currently working and they have one subsidiary for prepare management accounting report,
there are different methods used and that have some advantage and disadvantage. Through
management accounting system entire financial problems can be solve in the organisations
P1. Definition of management accounting and necessary needs of management accounting
systems
From: - Management accounting officer
To: - General Manager of R. L. Maynard Ltd.
Subject: - Management accounting system
Introduction:-
The present task cover meaning of management accounting, essential requirement and
different types of management accounting system for R. L. Maynard Ltd.
Meaning of Management accounting system:-
Management accounting is an occupation that concern in management decision making
by partnering, performance management and making planning methods with control to assist
management in the preparation, providing expertise in financial reporting and execution of
organisation's plan of action. Financial accounting produces yearly report in order to
stakeholders and generate monthly reports for organization's department employees and the chief
executive msnsgers (Renz, 2016.). This report shows the amount of money of acquirable cash
and orders in hand, sales income generated, accounts payable and receivable, outstanding debts,
raw material and inventory.
Methods of management accounting systems:
1. Cost accounting systems

This accounting system is a model used by organisations to figure the expenditure of their
goods for gainfulness investigation, inventory valuation and cost control. This system is based on
company's entire cost of the products. Company must know that which product are profitable
and which products are not profitable in the organisation (Chenhall, and Moers, 2015). There are
two types of cost accounting systems i.e. the job order and process costing. Job order costing is a
cost accounting system that roll up manufacturing costs separately for each job and procedure
costing for all process. R. L. Maynard Ltd. also uses this system for their operational work. As
company can know that how much their cost of product and how much price for the selling. All
construction goods can be used in the cost accounting system for controlling their cost.
2. Inventory management system
An inventory management is a model used by company for maintaining the inventory of
good selling and purchasing . This system is for following inventory levels, sales and deliveries.
It can also be used in the construction industry to create a work order, bill of materials and
another industry related papers. All data of sales, purchase, raw material, sales return, purchase
return, packaging, deliveries, unfinished of goods are maintaining in the inventory management
system (Quinn, 2014. ). R. L. Maynard Ltd can use this system for making their inventory and
manage the entire data. They also can used into sales and purchase report, so they will easily find
the details in future,when they require it. its also can be used in company's product's succefull
and pending deliveries. So it is the best system to keep the in safe for the further query.
3. Job costing system
Through this system company can easily track the record of cost revenue by job and
reporting of profitability. It is the procedure of determining the labour and material cost for each
job in a systematic way. It can be used in the industry to secure their goods and prices cover
actual cost and provides a profit to the company. The reason of any business is to make more
profit from their business, and job costing is the most effective system to ensure that happen
(Wagenhofer, 2016.). R. L. Maynard Ltd use this system for their labour, that how much
revenues are getting from them. and how much pay, they are receiving. Company can use this
system for their productivity and profitability of the organisation. This system is based on
emplyee's productivity, so if employees can not be able to provide their productivity according to
target, then company can take action, which can decrease the further budget.
4. Price optimising system