Management Accounting and its Essential Requirements

Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Management accounting and its essential requirements...................................................1
P2 methods of management accounting report......................................................................3
M1 Benefits of management accounting system....................................................................4
D1 Management accounting report integrated within organisational....................................4
TASK 2............................................................................................................................................5
P3 Calculation of an income statement.................................................................................5
M2 Management accounting techniques................................................................................8
D2 Analysis and interpretation of data ..................................................................................8
TASK 3............................................................................................................................................8
P4 Analyse advantages and disadvantages of different planning tools used for budgetary control.
..........................................................................................................................................................8
M3 Analyse the use of different planning tools for preparing and forecasting budgets......10
TASK 4..........................................................................................................................................10
P5 management accounting systems and its response to financial problems.......................10
M4 Organisational sustainability through management accounting ..................................12
CONCLUSION .............................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
Management accounting is a term used to describe an accounting methods, system and
techniques which provides information to business managers. This would help in making
decisions related to day-to-day operation of a business. With regards to small organization, this
concept aid them to monitor performance of business in regular manner. This report is carried on
C&S Builder Merchants LTD to discus concept of management accounting and to understand
different planning tools impacts an organization (Fullerton, 2014). Apart from this, report will
keep its focus over Planning tools of budgetary control, different techniques of cost analysis, use
of planning tools and adaptability of management accounting in an organization. Lastly,
assessment will put light on usage of management accounting and understanding of different
techniques of cost analysis and control.
TASK 1
P1 Management accounting and its essential requirements
Management accounting is the process of preparing reports. In this accounting
information goes through several steps such as interpretation, analysis, identification and at last
presentation. The overall information is obtained with a help of financial and cost accounting.
These type of information which are required by a manager for making daily task preparation
and to make short term decision for an organisation. There are different uses of management
accounting in every field and their application are as follows: It is used to measure performance
of employee and identifying of risk possibility, it is also used in allocation of resources in an
optimised way as C&S Builder Merchants LTD can use different techniques to allocate the
resources so where the resources are needed first should supply there first. It helps organisation
to achieve the long term goal and to sustain for the longer period (Renz, 2016). The management
accounting used to provide the proper presentation of the position of organisation in terms of
finance, Which helps to prepare the financial reports,used in decision-making for future.
C&S Builder Merchants LTD is a manufacturing company which supplies the natural
and man-made stones, concrete, bricks, tiles, and woods like thing for making designer garden.
C&S Builder Merchants LTD uses inventory control management and budgeting control
techniques for handling the the accounts in efficient and effective way.
There are various types of management accounting system which are as follows;
1