Project on Management Accounting System and Requirement in Organization
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Added on 2020-06-05
Project on Management Accounting System and Requirement in Organization
Added on 2020-06-05
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MANAGEMENTACCOUNTING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Management accounting and essential requirements of different types of managementaccounting system..................................................................................................................1P2. Different methods used for management accounting reporting.......................................3M1. Benefits of management accounting system and their application within organisationalcontext....................................................................................................................................5D1. Critical evaluation of the way management accounting system and reporting is integratedwithin organisational process.................................................................................................5TASK 2............................................................................................................................................5P3. Calculating the cost using appropriate techniques of cost analysis to prepare incomestatement.................................................................................................................................5M2. Range of management accounting techniques and financial reporting documents........7D2. Financial reports that accurately apply and interpret data for a range of business activities................................................................................................................................................8TASK 3............................................................................................................................................8P4. Advantages and disadvantages of planning tools used in budgetary control...................8M3. Analysing the use of different types of planning tools and their application for preparingand forecasting budget..........................................................................................................10TASK 4..........................................................................................................................................11P5. The way organisations are adapting management accounting system to respond financialproblems...............................................................................................................................11M4. how responding in financial problem, management accounting can lead organisation tosustainable success...............................................................................................................12D3. Critically evaluation of how planning tools help to respond financial problems to leadorganisation..........................................................................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONEffective management and control is the prime requirement of business and organisationfor sustainable growth and development (Bovens, Goodin and Schillemans, 2014). Managementaccounting assist the business structure in terms of improving quality decisions for controllingthe business activities. Organising, planning, controlling and effective communication is one ofthe key aspects considered in management accounting. This project produces brief understandingof management accounting system and requirement in organisational context. Range ofaccounting techniques are defined in respect of profit evaluation and effective management forbetter control and management. Cost measurement techniques are also defined in this contextsubject to evaluate profit also considered in this context. Use of planning tools in making budgetsand plans in order to make growth and development plans illustrated in this subject. Also, waysare compared in respect of implementing management accounting system within theorganisation. Zylla company management accounting is considered in this context. TASK 1P1. Management accounting and essential requirements of different types of managementaccounting systemManagement Accounting It is an important procedure that includes preparation of reports and accounts which aimto render proper and accurate information to managers of company. It is an essential techniquethat assists in performing planning, controlling, organising and forecasting functions. Everybusiness organisation in today's world adopt this system in order to carry out the overall functioneffectively and efficiently (What is management accounting system, 2018). This system involvesmany accounting concepts, tools, rules and regulations that are applied into organisationalsystem that lead to accomplishment of final goals and objectives. It is the responsibility ofaccounting manager to control this section in a proper way. Managers held responsible formanaging accounting system that control all aspects associated with it in decorous mode. Management accounting is also integrated with planning controlling and motivation. Itmakes smooth the planing process which is very important for decision making process.Formulation of plans and strategies can be implemented with the use of management accounting1
system. It not only helps to improve internal control and management but also motivatesmanagers and accountants.Managerial accounting also helps to analyse the overall performance of organisation forbetter and smooth operations. Managerial accounting not only used to analyse used for effectivemanagement but also helps to analyse performance of operations. There are number ofmanagement accounting systems that are adopted by the business firms that are discussed asbelow: Inventory Management System: Every business firm has to maintain inventories ofdifferent nature and types in a conducive manner. It includes all processes that considerfluctuations that happen during inflow and outflow of stock or order quantities. It keepstrack on proper management of raw materials or inputs that is required in the processingof final output. Therefore, manager has to keep record of handling the inventory in acorrect manner. Risk Management System: It is a necessary element under accounting system thatcontrols all risks and unfavourable factors that come into way while performing the workprocess. There are number of issues that are needed to be taken into consideration whilemanaging financial risks (Brewer, Sorensen and Stout, 2014). It is a part and parcel ofbusiness life that may hinder the performance of business organisational system.Analysing financial risk which remain associated with financial growth and developmentare considered in risk management system. Cost Accounting Management: There are number of costs that are incurred duringrunning business and hence, management accounting involves this process. The basic aimof organisation involves carrying out operations while adopting cost effective methods.There are different types of costs that include variable and fixed costs that have diversenature and role. Therefore, it has become important to examine the type of cost which ispresent in organisational system. This cost basically helps to control the cost andenhances profitability of organisation. It is one of the essential aspects of cost accountingmanagement system.Job Costing System: There are number of departments that are present in single businesssystem. This system aids in calculating the cost of these sections and provide properdecisions regarding it. Under this, they have tracking order that helps in calculating the2
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