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Management Accounting Assignment (Aston Martin)

   

Added on  2021-01-02

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MANAGEMENTACCOUNTINGtoaccutoaccu
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Table of ContentsINTRODUCTION...........................................................................................................................1ACTIVITY 1....................................................................................................................................1Part A...........................................................................................................................................1Part B...........................................................................................................................................5ACTIVITY 2....................................................................................................................................9Part A...........................................................................................................................................9Part B.........................................................................................................................................13CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16
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INTRODUCTIONManagement accounting is the process of preparing management reports & accountswhich provide accurate & timely financial & statistical information that is helpful for themanagement to take effective decisions (Kaplan and Atkinson, 2015). It provide information todifferent stakeholders about the financial position of organisation and on the basis of it they takeimportant decisions. As the accountant of corporation is responsible to following principles ofmanagement accounting so that books of accounts can prepare as per the requirement. To betterunderstand this concept Aston Martin has been chosen which is a luxury sports carmanufacturing company of United Kingdom. This report discuss about various topics such as:the concept of management accounting & distinct types of management accounting systems,methods used for management accounting reporting and to use appropriate techniques of costanalysis to prepare an income statement using marginal & absorption cost. Apart from this, italso discuss about planning tools used in management accounting and how managementaccounting systems are helpful to solve the financial problems.ACTIVITY 1Part AManagement accounting is also known as managerial accounting. It is used by themanagers for taking decisions for performing operations and to control various functions for thebetterment of organisation (Ward, 2012). It involves preparation of management reports toprovide accurate and reliable information for framing short term as well as long term plans forthe purpose of achieving objectives of firm. Using such accounting, budgets along with trendcharts are designed for allocating key resources for generating revenues to attaining growth. Thisaccounting plays very crucial functions to manage internal operations of any business. Suchaccounting helps in building positive variances by applying techniques to eliminate or reduce thenegative ones to ensure that work is performed as per the planned activities. Some of the types ofaccounting systems are the followings:Cost accounting system: Cost accounting system is a type of management accountingwhich is used by the managers for recording activities, analysing production costs andtracking materials at different phases of production from raw material to finishedproducts. Such system is helpful in estimating associated costs for analysing profitability,1
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