The Present Management Accounting Report Based on Brooklands Hotel
Added on 2020-10-04
18 Pages4515 Words53 Views
Management Accounting
INTRODUCTIONManagement accounting is the process of making the report of management and accountthat provide appropriate statistical information required by the managers to make their dailybasis decision. When company use management accounting in their organisation, then it providethe accurate financial information which is required by the managers. The present report is basedon Brooklands hotel which is located in the England, United Kingdom. Hotel is providing theeffective hospitality services and accommodation to the people. In the present report, explanationof management accounting and requirement of different types of management accounting systemare covered. Other than that, different types of management accounting reporting and appropriatetechniques of cost analysis and their difference are discussed. Along with this, in the reportadvantages and disadvantages of different types of budgetary control and effective managementaccounting system which can be adapted by the company is covered.LO 1P1 Explanation of management accounting and requirements of various types of managementaccounting systemDefinition of management accounting: - It involves preparing and providing the financial andstatistical knowledge to the enterprises manager, so that they can make the daily basis and shortterm decision in the company. Management accounting also known as the cost or managerialaccounting and it is different from the financial accounting. In the management accommodation,they can include details of the organisation's available cash, sales revenues, accounts receivableand payable (Otley, 2016). When organisation prepare this type of report in their enterprise, thenit will be confidential and for internal use only, as opposes to financial accounting statements,which are publicly reported. Along with this, management accommodation reports provide theoutstanding debts of the company, inventory report, trend chart, analysis of variance and rawmaterial of the production. It is the effective system of the Brooklands hotel and they are usingsome important management accounting system in their business. Requirements of various typesof management accounting systems are given below:Inventory management accounting system: - It is one of the important managementaccounting system of Brooklands hotel. In this system, company can prepare the entire reports ofsales revenues, purchase, return and raw material of the production. It is the procedure ofordering, storing and utilize the organisation's inventory as raw material, components and1
finished goods. An organisation's inventory system is very valuable assets. Along with this, it isvery essential management accounting system for the business. Through it, they can use somesoftware, and they can save their all information and data in the software. Other than that,Brooklands hotel is able to maintain their inventory system using by the accurate data of thesales revenues, purchase, return and raw material of the production. The company is providingthe hospitality and accommodation services to their customers, and they should manage the allcustomer information, their room services and spa services of the business. However, theyshould use the inventory management accounting system for their enterprise. Through it, theycan manage the accommodation and spa services of the company. There are different types ofdepartment in the organisation, but some time they can not maintain the all services in thebusiness, so they can use the inventory system and they should provide training about theinventory management accounting system to their all valuable employees. However, they canlearn the use of inventory system (Renz, 2016).Price optimising management accounting system: - Company is selling the different types ofproducts and services on different prises. Price optimising system is based on the different priceof the products and services of the Brooklands hotel. According to this system, company shouldknow about the respond of the customers on different prices. There are number of people whoare using the services of the accommodation and spa. They can compare the entire services withanother company's services in the market. However, through this management accommodationsystem, manager can identify the all respond of the customers. Along with this, when they willprovide the products and services to their valuable customers, then it is very necessary that theywill provide that products and services in minimum price. Other than that, they should analysisthe price of the products and services of their competitor, so it will be easy for the business andthey can easily sale their products and services in the market. Company should set their pricesaccording to market and the customers, so they can purchase or use the services and products ofthe organisation (Chenhall and Moers, 2015). Other than that, price optimising managementaccounting reports provide the effective determination of the different price and response of theall customers in the market. Moreover, Brooklands hotel should use the price optimisingmanagement accounting system in their business, however they will able to provide effectivehospitality and accommodation services to their customers.2
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