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MANAGEMENT ACCOUNTING INTRODUCTION 1 TASK 11 P1 Management accounting system

   

Added on  2021-01-02

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MANAGEMENTACCOUNTING
MANAGEMENT ACCOUNTING INTRODUCTION 1 TASK 11 P1 Management accounting system_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting system............................................................................................1P2 Management accounting reports............................................................................................3M1 Benefits of management accounting system .......................................................................4D1 Different theories of leadership.............................................................................................5TASK 2............................................................................................................................................6P3 Calculation of costs and preparation of income statement using marginal and absorptioncosts.............................................................................................................................................6M2 Application of costing techniques........................................................................................7D2 Financial report.....................................................................................................................7TASK 3............................................................................................................................................8P4: Different types of planning tools used for budgetary control and their advantages as wellas disadvantages..........................................................................................................................8P5: Comparison between organizations adopting management accounting systems to solvefinancial problem........................................................................................................................9M3: Analysis and application of planning tools for budgetary control....................................11M4: Explanation of management accounting in solving financial problems and ultimately leadto organizational success...........................................................................................................12D3: Evaluation of planning tools which solves financial problems and show the way tosustainable success....................................................................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................14
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INTRODUCTIONManagement accounting is the process of analysing operations and business cost forpreparing management accounts and management reports that provide timely and accuratefinancial and statically information to managers. It is helping to managers for taking short termand day to day decision and also helping for achieving organization goals. In different words, itis the act of creation logic of costing and financial data and interpreting that data into helpfulinformation for officers and management within an organization. Ever joy enterprises is workingfor a leading accounting firm of Deloitte and KPMG. It operates in entertainment and leisureindustry in the UK is consulting with the management accounting firm.This reports content several tasks and in task first describe management accounting,compare with financial accounting, cost accounting systems, identify inventory managementsystems, job costing systems, types of accounting report. In task two calculated break evenanalysis, in task three applying budgeting planning for solving financial problems and alsofinancial governance.TASK 1P1 Management accounting systemAn efficient management accounting system reaches into all departments of a companysuch as IT, human resources, finance, sales and operations. In addition to using typical financialdata, managerial accounting can also include non financial information like as current salesreports, order backlog, cash on hands, assign status of accounts payable and receivables, anddelivery deadlines details and current inventory levels of finished products and raw materials(Chenhall and Smith, 2011). Difference between management accounting and financial accounting Management accountingFinancial accountingManagement accounting is process ofproviding and preparing accurately and timelystatistical and financial information tocompany managers so that they can makeshort term and day to day decisions.Financial accounting is the procedure ofmaking of financial statements of thecompanies to demonstrate their financialposition and performance to outside people ofan organization such as customers, suppliers,investors and creditors.This accounting takes organizations financialThis accounting focusing on preparing1
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information and develops reports forconfidential and internal use by managers foridentifying ways to run the organization moreeffectively with taking efficiently decisions. information for outside parties like as lenders,stockholders and public regulators accordingto generally accepted accounting principles.Management accounting deals with internalsystem of an organization and evaluates andmeasure its processes for the management ofthe company.Financial accounting deals with providinginformation to those outside the company, likeas creditors and stockholders.Cost accounting systems (Direct costs and standard costing)Cost management is the procedure of preparation and controlling the monetary fund of abusiness. It is a kind of management system that allows a business to anticipate impendingspending to help bring down the modification of going over budget. A cost accounting system isused by producers for making activities using a inventory system. In different words it’s asecretarial system intended for producers that follow the course of inventory repeatedly throughthe several stages of production. An amount that have to give up and paid up in order to getsomething. In business, cost is usually a monetary valuation of material, time and utilitiesconsumed resources, opportunity and effort in delivery and production of a goods or services.Direct cost An expenses that can be directly incurred to production or manufacturing processdepartment (Kihn and Ihantola, 2015). Direct cost including material, labour, fuel or power withthe rate of production but are consistent for each unit of construction and are frequently under theliability and control of the section manager. Standard costingA Standard cost is an estimation of expenses that are normally happen during theproduction of a performance of a service. Standard costing is a method of costing that is used toevaluate the standard revenues and standard cost with the actual outcome, in order to enter at thevariances along with its reasons, to inform the management about the deviations and takeremedial measures, for its development.Inventory management system Inventory is an accounting period that mention to goods that are in several stages of beingready for sale including finished goods, work in progress and raw materials. Inventory2
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