Management Accounting and its Essential Requirements

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Management accounting and its essential requirements...................................................3
P2 Evaluation of the three different types of management accounting reports......................6
M1...........................................................................................................................................7
M2: Different types of accounting techniques.......................................................................7
D1: Critically evaluation on how management accounting system and its reporting can be
integrated within organisational process................................................................................8
TASK 2............................................................................................................................................8
P3 Application of absorption and marginal costing techniques.............................................8
M3 Analyse the use of various planning tools and its application for forecasting and preparing
budgets..................................................................................................................................11
D2 Data Interpretation..........................................................................................................11
TASK 3..........................................................................................................................................11
P5 Application of management accounting system to respond financial problems.............13
M4 Analyse financial problems, management accounting lead organisations to make success
..............................................................................................................................................14
D3: How planning tools for accounting respond appropriately to resolve financial problems15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Management accounting is a tool which assists the manager of organisation about better
planning of different aspects which ensures higher control over their business operations. It is
refers as the process which involves the aspects regarding identifying, measuring, evaluating,
interpreting and communicating information which is directly or indirectly related to
organisation and contributes in accomplishment of organisational objectives. Application of the
different accounting systems provides opportunity in improvement of the understanding of the
different departments through which their support is ascertain in the completion of common
objectives of organisation. There is huge importance of these systems in the process of providing
effective response to financial issues which results in loss. This will provides the opportunity is
to make the internal structure more strength and reliable. TATA Motors is global brand which
manufactures different utility vehicles according to the needs of customers (Albelda, 2011).
In the present report explain about, application of management accounting systems to
gather different information about organisational performance along with their requirements and
various kind of management accounting reports and their importance. Also, advantages and
disadvantages different kind of budgets and contribution management accounting systems to
respond financial issues.
TASK 1
P1 Management accounting and its essential requirements
Management Accounting: It is important concept which is used by the managers of
TATA Motors is adopt the principles of accounting to improve their information before taking
important decisions in relation to the different matters of organisation. This will helps them to
perform control functions in adequate manner. It is stated by AICPA that the practices of
management accounting used mainly in three area which includes strategic, performance and risk
management.
Definitions
According to IMA, Management accounting is important profession which contributes in
decision-making, planning and management of performance in effective manner. The different
provisions also provide expertise in financial reporting and controlling functions which assist in
the formulation of effective organisational strategy.