Management Accounting and Costing Methods

Management
Accounting

EXECUTIVE SUMMARY
The study highlights UCK Furniture organization and how management accounting
assist entity to achieve its objectives. Specific sets of methods are employed where absorption
and marginal costing can be used to create a cost report. In fact, for fiscal oversight, various
forms of planning methods are used. A s UCK furniture had experienced significant variations,
different tools used for same purpose.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
1.1...........................................................................................................................................4
1.2...........................................................................................................................................4
1.3...........................................................................................................................................5
2.1:..........................................................................................................................................6
2.2.........................................................................................................................................10
2.3.........................................................................................................................................11
(a.).........................................................................................................................................12
(b.)........................................................................................................................................13
3.1.........................................................................................................................................14
REFERENCES..............................................................................................................................19

INTRODUCTION
MA implies to internal aspect of a company, as it aims to gain the organization's targets.
Management accounting isn't about last data, but it is in a structured process of making reports
and strategies to enable management to work properly (Brewer, Garrison and Noreen, 2015).
Management reports can allow UK accountants as well as management to be well proficient with
the recent trends and thus minimize costs, encourage people who function efficiently, remove
product ranges to make investment in products that offer the most return to company. UCK
Furniture may receive a better outcome by applying various sources as study illuminates the
discrepancies if any. Such reports may be produced every quarter, monthly or perhaps even
weekly.
TASK
1.1
Management Accounting: This is a wide field which mainly dedicated towards summarising
information and data as well as reporting of such data to top managerial staff with object to assist
them in decision making task (Jiambalvo, 2019).
Perquisite of management accounting: It require use of some specific systems like inventory
management system, cost accounting system etc. to generate relevant information for
management.
Importance of MA: This is crucial for managerial and organisation decision making. This is also
significant for formulation of strategies and organisational policies.
1.2
Systems of MA: There are some defined systems of MA which offer specific framework for
adapting management accounting structure, as follows:
Inventory management system: It primarily deals with efficacious managing of inventories. This
system requires comprehensive data related to each stock item of organisation. This facilitates
managers to manage all the inventories items and stocks as well as to optimise related inventory
costs. It allocates all the key holes in systems related to inventories which assist managers in
finding out major variables affecting overall inventories costs (Warren, Reeve and Duchac,
2013).