logo

Management Accounting and Its Types Report

   

Added on  2020-07-22

17 Pages4109 Words78 Views
Management Accounting 1

ContentsINTORDUCTION...........................................................................................................................3TASK 1............................................................................................................................................3a). Explanation of management accounting and its types:.....................................................3B) Presenting Financial information:.....................................................................................7M1...........................................................................................................................................7D1...........................................................................................................................................8TASK 2............................................................................................................................................8M2:.......................................................................................................................................11D2:........................................................................................................................................11TASK 3..........................................................................................................................................11a). Budgets and their advantages and disadvantages:...........................................................11b). Budget preparation process covering identifying of the pricing and diverse costingsystems:................................................................................................................................12C). Importance of budget:.....................................................................................................13M3:.......................................................................................................................................13D3.........................................................................................................................................14TASK 4..........................................................................................................................................14Explain ways by which the Balanced Scorecard approach can be used to overcome thefinancial distress of an organisation:....................................................................................14M4.........................................................................................................................................15CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................172

INTORDUCTIONIn this competitive world, this can be rightly observed that the management accounting isthe tool that can be used by a firm in order to gain the sustainable development. There arevarious tools which can be used by the organisation in order to gain the sustainability in aneffective manner. Manager of the cited firm is required to adopt these accounting tools that canassist to gain the pre-set target. Management could gain the sustainable development. Now, thereis a strong need to adopt various costing method that can be used by the organisation in order tooptimise the profits in an effective manner (Lavia López and Hiebl, 2014). Various planningtools are implemented by the organisation in order to optimise the profits. Various accountingtools are used by the organisation in order to overcome the various financial issues.TASK 1a). Explanation of management accounting and its types: MA system is the most crucial process which can be implemented by the organisation foridentifying, analysing, assessing and evaluating the non-financial problems. Now, this can berightly said that the MA systems are the best tool through which the organisation could get thecompetitive advantages over the others. In other words, this is the process of presentation of theaccounting information for making the policies which can be considered by the organisation inorder to make their routine activities. This simply means that management assist to performwhole its functions covering planning, organising, staffing, directing and controlling (Christ,2014). 1.Difference between financial management and management accounting.Financial accounting is the MA such as the two legs of the similar human. Function of bothof them is to ensure that management development toward better future. But on the other hand,management accounting is broader than financial accounting in assisting management sincesubject “management accounting” is formed by the organisation in an effective manner.Financial management Management accountingFinancial management concentrates onformulation of financial statements ofparticular business organisation that is requiredManagement accounting is performed by theorganisation in Order to supply all relevant andmaterialistic information to manager that3

by different parties that are associated with thatcompany. results in formulation of effective and efficientstrategy for the company. This type of management accounting is utilisedby the internal and external parties associatedwith that company. Hence, it has broaderscope. The main user of this accounting system isinternal management and therefore, it hasnarrower scope. It has to be published properly as its basic aimis to deliver financial information to severalusers. Apart from it, these accounting system isaudited by the auditors. Management accounting is neither publishednor audited as it is of internal use, hence thereis no requirement for the same. This type of accounting is framed at the end ofthe financial time period. This is conducted as per the need arises bymanagement in the company. It is developed in proper structure and format. There is no proper format hence it is drawn asper the convenience of manager. This type of statements delivers informationthat is of monetary nature. This type of accounting consists of data andinformation that is of monetary and non-monetary in nature. The primary objective of this type of financialstatement is to deliver all information tooutside users that include, investors, creditors,debtors etc. The basic aim and objective of thismanagement system is to help the manager totake effective decisions on number ofimportant information (Moser, 2012). Management have to conduct this financialmanagement regularly, thus it is compulsoryfor the manager to perform it. It is not compulsory for the management toconduct this process as it is performed as theneed arises. There are certain standard and norms on whichit is performed. There are not specific rules and regulations thathave to followed by the management. 2.Importance of management accounting: Management of the cited organisation isrequired to make various management accounting tools which can be implemented by thefirm for achieving its pre-set targets in an effective manner (Weygandt, Kimmel, andKieso, 2015). This is the term which is implemented to elaborates the accounting tools,4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Management Accounting and Its Types
|18
|4552
|47

Management Accounting: Explanation, Reporting, and Planning
|20
|5529
|85

Management Accounting Systems - Report
|14
|4559
|36

(MA ) Management Accounting Assignment
|10
|2580
|64

Management Accounting [PDF]
|16
|5255
|47

Management Accounting Systems PDF
|15
|3837
|53