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Management and Accounting Essay - Toyota Plc Ltd

   

Added on  2020-07-23

20 Pages5255 Words55 Views
Management and Accounting
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Management accounting and essential requirements of its different accounting system.....1P2. Techniques of management accounting reporting methods..................................................3M1: Benefits of accounting system.............................................................................................5D1:Critical analysis of reporting system.....................................................................................5TASK 2............................................................................................................................................5P3. Different costing method to determine Net profitability......................................................5M2: Evaluation of management accounting techniques.............................................................8D2: Analysis of income statements.............................................................................................8TASK 3............................................................................................................................................8P4: Benefits and limitation of using planning tools....................................................................8M3: Evaluation of planning tools..............................................................................................10D3: Tools used for resolving financial issues...........................................................................10TASK 4..........................................................................................................................................11P5: Various measures to resolve financial problems................................................................11M4: Evaluation of financial issues............................................................................................12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................13...................................................................................................................................................14
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INTRODUCTIONManagement Accounting is necessarily required in every business in order to manage andcontrol accounting reports and informations of business organisation which help them to knowtheir true and fair financial position of business. The manager of accounts and financedepartment is held responsible to prepare financial reports using different accounting andreporting system through which they get accurate and reliable result. The main motive ofpreparing this report is to evaluate the importance of management accounting system informulating effective decision of an business operations of an organisation (Ahmad andKamilah. 2013). Using different planning tools and techniques by manager in order to resolvefinancial issues are briefly discussed in this project report. This project also covers variouscosting methods which help in analysing profitability of company. As mentioned in brief of thisreport, Company named Toyota Plc Ltd which deals in auto mobile sector is selected for thepreparation of this report.TASK 1P1. Management accounting and essential requirements of its different accounting systemDefinition of management accounting:As per Management Accounting Practices Committee(MAPC) it refers to process ofidentifying, measuring, preparing and interpreting the financial information which helpmanager to formulate effective plan in order to ensure proper utilisation of resources.As per Chartered Institute of Management Accountants(CIMA) it is considered as anintegral part of management which is related with identifying and interpreting financialinformation in order to formulate strategy and effective decision making process.Functions of Management accounting:Planning: The manager need to formulate effective plan and strategy related to theeffective utilisation of resources while achieving desired goals and objectives within specifiedtime period.Organising: It is a process of organising organisational structure and accordinglydelegate responsibilities to employees to achieve desired targets (Bodie, 2013). There aredifferent managers in different departments of an organisation and it is important to provide themtheir roles and responsibilities with the help of which they perform in better way.1
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Controlling: It is a process of identifying the deviations and problems that anorganisation faces during business process and therefore control such deviations in order toachieve desired objectives (DRURY, 2013). The manager need to focus on controlling theactivities of misrepresentation's of data in order to get accurate and reliable result.Decision-making: With the help of available resources the manager need to makeeffective decision which help in motivating and directing employees to perform their delegatedtask in an effective manner in order to achieve desired goals and objectives.Difference between Management accounting and financial accounting:Basis of DifferenceManagement accountingFinancial accountingMain objectiveIts main aim is to manage andcontrol accounting reports andinformation which help inmaking effective decision toachieve desired targets.Its main aim is to providedetails to outside parties suchas creditors, investors etc.which help them in takinginformed decision.Regulatory RequirementsInstitutes such as CIMA,ICWAI frame some standardand guidelines to regulatemanagement activity.It is essentially required forcompany to follow company'slaw and regulationimplemented and governed bygovernment.Principles of governingThere us no basis of preparingmanagement accounting.With the help of GenerallyAcceptedAccountingPrinciples(GAAP) financialaccounting statements areprepared.PerspectiveIt has futuristic perspective.It has historic perspective.Essential requirements of different accounting system:To monitor and control business operation it is essentially required for manger of ToyotaPlc Ltd. to adopt various types of accounting systems:Cost accounting system: Its main motive is to control and minimise irrelevant costincurred in the manufacturing process and should focus on investing money in important areas of2
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