Assignment on System of Management Accounting

Added on -2020-06-06

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From: Management Accounting Officer
To: General Manager
Subject: To write a report to GM covering management accounting and management accounting
system together with different costing techniques and reporting to enable the organization
implement them.
Every organisation want to expand their business, they want to enter in new market so
they can earn more profit in long run. Earlier companies could attain their goals by focusing on
their financial records but now this strategy do not work for many enterprises because of various
external factors like rapid change in technology and government regulations etc. Management
accounting is a process of reducing cost of business operation and increasing the sales if
organisation by using financial and non-financial information (Qian, Burritt and Monroe, 2011).
''Unicorn grocery'' is operating in retail sector, they are running their business in Manchester and
they sell food items and vegetables to their customers. This assignment will explain various
system of management accounting. Various methods of reporting will get discuss under this
report. An income statement will be made in this file, the different between marginal and
absorption costing will also become part of this project. This assignment will also cover some
planning tools which are generally used for budgetary control. Every organisation has to cope up
with financial problems, this report will explain some of the management accounting system
which can be used for resolving these kind if trouble.
P1 Different type of management accounting systems
An organisation basically have two option for enhancing their profit, first is to reduce the
total cost of business and second in increase sale of the organisation. These targets can only be
attain by making proper plan for for facing external factors like environmental changes, social
trend etc. These types of element do not get cover in at the time of solving financial problems.
Managerial accounting is provide great assistance to the manager in making crucial decision. It
does not only assist finance division, it also support other department of the organisation like
marketing, human resource etc. The main aim of financial accounting to depict the revenue
earned and other policy of the company but management accounts concentrate on internal
factors. Most of the people argue that is manager use this form of accounting only for achieving
long term goals but this argument is correct up to a limit. The significant task like managing day
to day cash in proper way is also done by using tools of management accounting.
Manager use this this system for collection and analysation of various kind of data like
information relating to sales and production, so a proper report can be made and company can

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