Management Accounting: Requirements, Methods, and Cost Analysis

Management Accounting

Table of Contents
INTRODUCTION ..........................................................................................................................3
Task1................................................................................................................................................3
P1 Management accounting it's essential requirements of different types of management
accounting systems......................................................................................................................3
P2 Explain different methods used for management accounting reporting................................5
TASK 2............................................................................................................................................7
P3 Calculate costs using appropriate techniques of cost analysis to prepare an income
statement using marginal and absorption costs...........................................................................7
P4 Explain the advantages and disadvantages of different types of planning tools used for
budgetary control......................................................................................................................11
TASK 4..........................................................................................................................................12
P5 Compare how organizations are adapting management accounting systems to respond to
financial problems.....................................................................................................................12
CONCLUSION..............................................................................................................................14
REFRENCES.................................................................................................................................15
Books and Journal.....................................................................................................................15

INTRODUCTION
The term Management accounting is described as an tools and equipments of accounting
that is plentiful to assure that the company are applying amened and finest possible usage of their
constricted and valued assets and resources. This is using for resolving the several projects and
work that involve measurement, examine and chiefly showcasing their financial information and
data to the administrator to create rapid and fine informed judgements and determination . In
regards of the organisation that is small as well as medium, The process of management
explanation resolve a several different problems that involve constricted credit facilities,
deficiency in the demand and request of their goods and sharing inappropriate system of
structure of recording(Amran, 2020).
The company Connect Catering Services, is the very famous and reputed
company in U.K. For catering fresh foods and family oriented company. The organisation have
been prosperous in directing their organisation for the many years because of their quality and
excellence in products and services. This context is going to describe about the management
accounting and their applications by assorted techniques. This is also include several tools and
equipments of planning that will going to support the company in resolving the issues and
problems of the company.
Task1
P1 Management accounting it's essential requirements of different types of management
accounting systems.
Management accounting is applicable and appropriate equipment and also very useful for
gaining financial information which are recorded annually in the statement of financial year that
is very important and that involve accounts of profit and loss, cash flow, balance sheet .The main
objective and target is to develop the procedure of decision making in the organisation to
enhance their process and system much sustainable to accomplish their targeted aims and
objectives(Borker, 2016).
The process of management accounting has been very effective to create huge and vast
share and they gain effective and better outcomes of decision making . Few of their chief rule
and values has assisted different company around the globe to develop the administrator and

director capabilities and quality of decision-making and also give their contribution to improve
and develop more productivity of the company(van der Kolk, 2019)..
The extraction of management accounting is comes from the accounting of financial year,
also there is a huge fluctuation and variation among the two managerial accounting. This
accounting is much advantageous and used by many companies(Bui, and Nguyen, 2020). There
are some differences among the financial accounting and management accounting that are
mentioned below:
Basis Managerial Accounting Financial Accounting
Content This is accounting is connected
with financial and non financial
information.
This accounting is only related
with one information and that is
financial information.
Content This accounting is generally
and mainly applied by the
internal stakeholders for the
procedure of decision making.
This cater a information that are
much required for each
stakeholder because that
alleviate decision making that
are connected to their interest
There are few kinds of system that are explained below:
 Cost Accounting System- This is the procedure of maintaining, examine and coverage
each cost such as fixed cost, semi variable cost, variable which are sustain in the regard
of business. This also support the management in analyzing and determining the domain
that required much development and few steps for minimizing the bad points. This also
called as product costing system. This structure serve the company to measure and
identify the price of the goods and their profit and earning investigation and the valuation
of inventory . The major aim behind this system is to develop and enhance the margin of
the net profit of the product in the company(Fuzi, Habidin and Effendy, 2016).
 Price Optimizing System- This is the procedure of mathematical that assist the company
to identify the cost of the products. This system also support in forecast the alteration in
the cost or volume and analysis the appropriate cost and supreme amount so that a