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Management Accounting INTRODUCTION 3 P2

   

Added on  2020-06-05

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Management of Accounting

Table of ContentsINTRODUCTION ..........................................................................................................................3TASK 1............................................................................................................................................3Management accounting and its types:.......................................................................................3P2 Various management accounting reports:..............................................................................4M1...............................................................................................................................................6D1................................................................................................................................................6TASK 2............................................................................................................................................6P3. Net profits as per marginal and absorption costing:.............................................................6M2: Implement of management accounting tools:......................................................................8D2: Analysis of income statements:............................................................................................8TASK 3............................................................................................................................................8P4. Different planning tools used in the budgetary control:.......................................................8M3.............................................................................................................................................10TASK 4..........................................................................................................................................11P5. Comparison with other company's in relation to solve financial issues.............................11M4: Evaluation of financial issues..............................................................................................1D3: Tools used for resolving financial issues.............................................................................1CONCLUSION................................................................................................................................1REFERENCES................................................................................................................................2

INTRODUCTION Management accounting plays a most important part for developing firm's growth.However, this is the most prominent way to develop any firm. As, there are diverse tools bywhich a firm could develop in an effective manner. This report is based on the Zylla companywhich specially deals in small retail trading and its poor performance is analysed and tries toovercome these by applying effective management tools. Under this report, diverse managementaccounting tools such as- Job costing, cost accounting, inventory management system, priceoptimisation system are used. The management accounting officer use them in an effectivemanner so that the sustainable development can be done (Bodie, 2013). On the basis of these management accounting tools, Zylla company's managementaccountants makes diverse management accounting reports so that the company can makeeffective strategies and have tight control over the costs. The net profits of the firm is maximisedby using the marginal costing and absorption costing method. Various budgetary tools such asstatic, vatiable, operational, cash budgets and others are mentioned hereunder, their advantagesand disadvantages are also discussed. In addition to this, company issuing effective tools that canbe used for overcome of the financial risk. By applying, KPI, Benchmarking, financialgovernance, Balance Score Card approach financial problems can be overcome (Fullerton, R.R.,Kennedy and Widener, 2013).TASK 1Management accounting and its types:Management accounting is the process of recording, assessing, evaluating the financialand non-financial information of the firm so that they could make effective report that could beuseful for the managers of the firm so that they could incorporate effective decisions for theirroutine activities. Management accounting does not have any regulatory requirements unlikefinancial accounting. There are certain tools that can be followed by the firm for achievingroutine business activities. However, this is the most essential task for making businesssustainable. There are so many types of management accounting. Some of them are as mentionedhereunder: Cost accounting system: This is the cost accounting tool which is used by the firm foreffective calculating per unit cost for making the business objectives in an effective manner. The

cost accounting makes an effective tool. With the help of this, the company can effectively lowerthe costs of the products by eliminating the wastage costs. Which will ultimately gain thesustainable development. Zylla company needs to apply this system for improving theperformance of its operations (Baldvinsdottir, Mitchell and Nørreklit, 2010).Job costing system: This is the management accounting tool under which all the costswhich are related to the costs of materials, labours and overheads for a particular job. However,this approach is most effective tool for identifying specific costs to individual jobs and assessingthem to oversee if the costs could be limited in a later jobs. Job costing demands a considerableamount of costing precision if costs are to be reimbursed by the customers. Under this case, thecost accountant must highly review the costs assigned to each job before going to release it to thebilling staff, that creates a customer invoice. Such could cause long hours for cost accountants atthe end of the job, as the firm controller is willing to issues an invoice ASAP.Batch Costing system: This is kind of form of particular order costing. Job costingneeds to costing of jobs which are performed against particular order in batch costing items areproduced for inventory. A final good might needs diverse factors for assembly and might beproduced in economical batch lots. When orders are achieved from diverse customers, there arecommon products among orders. Then manufacturing orders might be issued for batches,including of estimated quantity of each kind of good. Batch costing method is considered in sucha cases for measuring cost of each such batch ( DRURY, 2013).Price optimising system: This is the tool which apply by the cited firm for mathematicalanalysis by the firm to identify how customers is going to respond to diverse prices for tisproducts or services via various channels. This also implement the prices which the firm identifywould be best to satiate the objectives like- optimising operating profits.Inventory management system: This is one of the management accounting tool that areused by the firm to optimise the inventory of the firm so that the firm can gain the competitiveadvantages over their rivals. However, this can be said that the company needs to adopt varioustools which could be used by the firm for affecting the firm's operations. By managing theinventory, firm can effectively use its available resources so that they could make effectivedecisions making by which the firm can achieve its pre-set targets.

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