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Management Accounting- Ever Joy Enterprise

   

Added on  2020-10-22

15 Pages4934 Words278 Views
ManagementAccounting

Table of ContentsINTRODUCTION...........................................................................................................................1TASK1.............................................................................................................................................1P1 Various types of management accounting system.................................................................1P2 Types of management accounting reporting.........................................................................4M1 Benefits of management accounting system and their application.......................................5D1 Analysis of different theories and approaches to leadership.................................................5TASK2.............................................................................................................................................6P3 Various type of costing techniques........................................................................................6M2. Application of management accounting techniques............................................................7D2 Interpretation of data.............................................................................................................8TASK 3 ...........................................................................................................................................8P4 Various planning tool for budgetary control and its advantages and disadvantage...............8M3 use of planning tool for preparing and forecasting budgets:..............................................10TASK 4..........................................................................................................................................10P5 Management accounting system and respond to financial problems...................................10M4 Management accounting system to deal financial problem................................................12D3 planning tool to cop-up with financial issue.......................................................................12CONCLUSION..............................................................................................................................12REFERENCES .............................................................................................................................13

INTRODUCTIONManagement accounting is related to the process of collecting, organising, reportinguseful financial information into statements that help internal manager to review the performanceand productivity of company (Management accounting, 2018). This report shows the meaning ofmanagement accounting system and accounting report. Different costing method are used tocalculate the net profit margin for company. Various management techniques to analyse withplanning tool with advantages and disadvantage are discussed. Further, in this reportaccountancy firm suggest company to apply various approaches of management accounting toresolve the different financial issue. Manager of business entity collect, analyse, measure, reportand calculate the collected information that helps them to form strategies for achievement ofcompany goal. To understand the importance of management accounting the case study of EverJoy Enterprise, that is one of the leading leisure and entertainment company of UK. As anaccountant consultant firm, the report shows the importance of management accounting toCompany. TASK1P1 Various types of management accounting system.In business, the process of identifying, classifying, measuring, analysing, interpretinguseful financial information to manager for the achievement of organisation goal and increasingthe productivity and profitability is known management accounting. It plays an important role inproviding useful data to the management people that further help them to create budgets, costmanagement and make effective financial reports. A) Basic difference between management and financial accounting.Basis Management accountingFinancial accountingAim The main aim of thisaccounting is to help theinternal manager to makeeffective plans for decisionmaking. It mainly focus on providingnecessary information to thebusiness outsider such asstakeholder, investor etc. thoseare interest to invest withincompany.Usefulness. It is related to the posting ofFrom the maintained report it1

qualitative and quantitativeuseful financial information inreport. provide useful information toinvestor as they can determinethe financial position ofcompany (Amidu, Effah andAbor, 2011). Time and useManager use to make report tofor organisational need thathelp to measure and improveinternal performance.These financial report are usedby internal and externalinvestor to figure out theproductivity of Ever JoyEnterprises. Auditing processReport made for internalmanagement are neverpublished to the company andare not audited by externalauditor. These report are published tothe external auditor for thepurpose of audit. Management accounting system: For making profit by cutting down unnecessaryexpenses in Ever Joy Enterprise management accounting system are useful. There are varioustype of accounting system that are help for company to measure and compare useful informationrelated to the increase of productivity and performance.Cost accounting system It is a framework used by firms to estimate the cost of their product for profitabilityanalysis, inventory valuation and cost control. If the mangers of the company follow this system,they help in providing necessary cost information and controlling cost by applying sometechniques such as costing and budgetary control. This accounting system can help Ever JoyEnterprises company accurately in cost products. provide valuable operational and functionalinformation and even measure performance. For example a toy company produce a differentproduct that requires huge cost in their manufacture. So this system would be an effective toolmanage cost and makes production department work accordingly so that profitability ismaintained. There are two types of cost:Direct cost2

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