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Management Accounting Induction

   

Added on  2020-06-06

13 Pages3653 Words243 Views
MANAGEMENTACCOUNTING Table of Contents

INTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1:...........................................................................................................................................1P2:...........................................................................................................................................3M1...........................................................................................................................................4D1...........................................................................................................................................4TASK 2............................................................................................................................................4P3:...........................................................................................................................................4M2...........................................................................................................................................6D2...........................................................................................................................................6TASK 3............................................................................................................................................7P4:...........................................................................................................................................7M3...........................................................................................................................................9D3...........................................................................................................................................9TASK 4............................................................................................................................................9P5:...........................................................................................................................................9M4.........................................................................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12

INTRODUCTIONThe management accounting is the important tools which are used by the company tomake their business operation decisions more effectively and its methods are used to measure thecompany performance. It basically comprises the explanations about the different managementaccounting systems and their elements for smooth functioning of the business activities whichare integrated with the management accounting reporting. This report also involves the varioususeful planning tools which are used for budgetary control as to measure and monitor thecompany’s performance appraisal (Amoako, 2013). A comparison is provided to reflect that howthe company can use the MA tools and techniques for appropriate implementation and execution.Under this report, Tech (UK) Ltd use the essential tools and techniques of the managementaccounting to solve out the department managers complained about the deficiency of financialinformation to better their decision-making. Under this report, the company will also prepare themanagement accounting reports for making the decisions in an efficient manner.TASK 1P1:It is the process which is followed by the company for examine the business costs to forminternal financial reports, records and helps the management to frame the business decisionseffective and efficient for achieve the predetermined objectives and goals. The accountinginformation which is obtained by doing analysis helps in financial accounting (ManagementAccounting, 2017). The management accounting assists the company’s management in theformulation of policies, procedures, in the decisions and also helps in daily operations of thebusiness. 1.Distinguish between management accounting and financial accounting:The numerous comparisons in between the financial and MA which are explained as under:This accounting used within the organization by the managers and employees whereasexternal users use the financial accounting for the decision making about the investmentin the company’s business (Vinayagamoorthi and et. al., 2012).The management accounting does not apply any rules or standards for the accountingwhile on the other hand, the financial accounting is worried with a different set of rulesand regulations which are relevant to the company.1

The management accounting uses the financial and non-financial information for makingthe reports and other useful documents whereas the financial accounting use only andonly the financial information for preparing the financial statements.The management accounting use only data which are historical, current, and future-oriented whereas the source of data is historical associated to the previous yearperformance in the financial accounting.2. The importance of management accounting information as a decision-making tool for thedepartment managers which are discussed below:Management accountants utilized the various tools and techniques for planning whichhelps in the decision- making process. They also focus on the main criteria of the businessoperations like revenue growth, productivity growth and efficient and effective utilization ofassets. 3. Cost accounting systems (actual, normal and standard costing):- This system assists thecompany to determine cost of the product. This system is used by the management of thecompany for lowering down their working expenses and similarly controls them in an effectivemanner. This is the type of accounting system which assesses about how an organisation is doingand benefits managers to form decisions which is relied on the costs of doing operational activity(Macinati and Anessi-Pessina, 2014). This system requires five basic parts. These are inventoryvaluation technique, input measurement basis, accost accumulation method, accost flowassumption, and a capability of recording cost flows at particular intervals.4. Inventory management system: This system keeps track the goods via whole supply chain orthe portion of the goods used in the business operations. It covers everything from the productionto retail, all the movements of inventory, etc. Management of TECH (UK) LTD. can beconsolidated with this type of system to attain all the targets by efficient flow of stocks in thebusiness manufacturing operations. 5. Job Costing systems: This needs to collectdirect materials, direct labour and overheads in aneffective manner. Here are certain tools which could be implemented by the organisation forgaining sustainability. Tech (UK) Ltd can implement this system at the time when products areidentical for tracking of the order expenses.P2:1. Diverse kinds of management accounting reports:2

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