Management Accounting and Different Types of Management Accounting Systems

Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Management accounting and different types of management accounting systems...............1
P2 Different types of management accounting reports...............................................................3
D1................................................................................................................................................5
TASK 2............................................................................................................................................5
P3 Calculation of cost after application cost analysis techniques...............................................5
M2...............................................................................................................................................9
D2................................................................................................................................................9
TASK 3............................................................................................................................................9
P4 Advantages and disadvantages of different types of planning tools used for budgetary
control.........................................................................................................................................9
M3.............................................................................................................................................11
D3..............................................................................................................................................11
P5 Adaptation of management accounting systems to overcome from financial issues...........11
M4.............................................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Management accounting is important concept which contributes in enhancing the
decision making power of internal parties. It is broad concept which includes the provisions of
cost and managerial accounting. Through application of such provisions different kind of
accounts are formulate which depicts the performance of different departments. It further helps
in improvement of the understanding among the different team members which provides
collective efforts in accomplishment of desired objectives of organisation. Large number of
benefits are gathered by organisation through implementation of such accounting provisions like
strategic planning, risk management etc. Tech (UK)Ltd. Is manufacturing organisation which
prepare special chargers for retailers (Zimmerman and Yahya-Zadeh, 2011).
In the present report explain about, management accounting and their requirement in
effective operation of business activities, application of different methods of management
accounting reports and their importance for organisation and application of marginal and
absorption costing in preparation of income statement. Also, advantages and disadvantages of
different type of planning tools used for budgetary control and adaption of effective accounting
technique to overcome from financial issues.
TASK 1
P1 Management accounting and different types of management accounting systems
Management accounting is a procedure of preparing management accounts and reports
which gives timely and accurate statistical information which are needed through managers in
order to make all short term and daily decisions. In this, employers use provisions related to
accounting information in order to take better or effective decisions and control management
functions as well. Management accounting consists process regarding analysis, determination,
execution of the accounting information with the help of cost accounting and managerial

principles. It offers effective opportunities to Tech (UK) Ltd manager to develop better policies
in order to achieving aims and goals with in given period of time.
Importance of management accounting as decision-making tool
Tech (UK) Ltd. is a manufacturer of mobile telephones, special chargers and the other
different gadgets for retail stored in United Kingdom. It provides special features in its mobile
phones so that people can be attracted. The main issues which Tech(UK)Ltd. Faced is lack of
finance related information which develops negative impact on the decision making of business
firm. In addition to this, management accounting consists cost accounting provisions. It will be
helpful for firm to improve performance level of the various departments. Some of the
importance of management accounting given below as above:
Rate of return evaluation- Effective provisions of management accounting is helpful in
evaluation of return those are regarded with the various projects. It is contribute those projects
which are profitable and also improve earnings (Weißenberger and Angelkort, 2011).
Forecasting of cash flows- It assess in estimation of cash flow in company with in the
particular time period. It gives better opportunity to manage its all future transactions on the
basis of working capital availability.
Variances predictions- It is a necessary function and helpful in determine deviations in
performance of staff members and then compare them with actual standards. It is helpful to use
the analytical, tool in order to sustain positive variances.
Difference between management and financial accounting
Management Accounting Financial Accounting
It is helpful for managers to take effective
decisions which can satisfy goals as
objectives of firm.
Under this, there is a need of communicate
financial position of firm to related users.
Its primary users are internal and these are
managers of firm.
Its users are external and these banks,
suppliers, investors and regulators.
These types of statements are used for
internal use not needed to audited through
Charted accountants.
Under this, these statements are published
for the use of general public and then sent
to the shareholders. There is a need to