Management Accounting: Types, Benefits, and Analysis

Management Accounting

Table of Contents
P2: Different types of management accounting system reporting......................................................3
M1: Benefits of using management accounting system.....................................................................5
D1: Critical evaluation of accounting reporting system.....................................................................5
TASK 2.................................................................................................................................................5
P3: Costing method which are use to determine net profitability.......................................................5
M2: Analysis of accounting tools and techniques..............................................................................7
D2: Critical evaluation of income statements....................................................................................7
TASK 3.................................................................................................................................................7
P4: Advantage and disadvantage of using planning tools in budgetary control.................................7
M3: Analysis of planning tools..........................................................................................................8
D3: Critical analysis of financial issues.............................................................................................8
TASK 4.................................................................................................................................................9
P5: Different financial issues that are being faced by company and measure to overcome them...........9
M4: Analysis of financial issues........................................................................................................9
CONCLUSION.....................................................................................................................................9

Types of management accounting system:
In order to record all necessary information regarding financial transaction which will be
incur by company during an accounting period of time are summarise and recorded with the help of
below mentioned systems:
Cost accounting system: according to this particular accounting system, managers can easily be able
to analyse total costs a company has done during the period of time. These types of cost are directly or
indirectly related with production of product and services. The primary motive of using this system is
to examine overall costs of the company so that chances of profitability can be enhanced.
Price optimisation: By the help of this system, manager can be able to determine effective prices
which would increase total interest and overall satisfaction of customers by offering economical
prices for their products. This system assists in evaluation total perception of customers regarding all
those prices which are being set by Zylla Company for their products. The project manager uses this
system to make numerical analysis that would assist in determining total attitude and behaviour of
customers.
Job costing system: As per this accounting system, it will be helpful to determine total costs which
are related for the purpose of completing particular activity. This would be useful to determine total
cost to their customers that are required to implement effective plans for their upcoming projects.
These types of costs are incurred with production of an individual or group of products manufacture
in lot size.
Inventory management system: These accounting systems would be useful to track overall
movement of products that are being used in the business operations by which they can attain their
aims and objectives in more quick time. These systems used to record all necessary information
regarding stocks through preparing bills, stocks invoices and so on.
P2: Different types of management accounting system reporting
In every business organisation, whether related production of retail sectors need to have
perfect accounting reporting systems. This can assists managers to record all crucial information that
are valuable for making decision more effective in coming time. On the basis of various reports that
are prepared in Zylla Company, they can manage to record data as per their date of occurrence. These
reports would be more valuable for the investors or other shareholders of the company to make
analysis of current position of the company. The primary purpose of using reports is to examine total
cash making ability and overall financial condition of the company. The investors can use this