Managerial Accounting Assignment

MANAGEMENT ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1Explain management accounting and give the essential requirements of different types of
management accounting systems.................................................................................................3
P2 Explain different methods used for management accounting reporting.................................5
P3 Techniques of cost for preparing income statement...............................................................8
P4 Advantages and disadvantages of different types of planning tools used for budgetary
control........................................................................................................................................10
Budgetary Control......................................................................................................................10
P5 Adoption of management accounting system to respond to the financial problem by the
Unicorn Grocery........................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Day to day record of the data and information is an essential element for an organisation
which facilitate and increase chances of profitability. It helps to managers to take decision on
daily basis or in short term. Unlike the financial accounting which helps in the stakeholders
welfare it is mainly for the internal audiences which are department managers etc. this report
typically shows the cash availability, sales revenue generation and many more things. Along
with this it also includes the trend charts, variance analysis and other statistical details
(Macintosh and Quattrone, 2010). This assignment is prepared for Unicorn Grocery by applying
various management accounting concepts into it. Furthermore company wants to create their
income statement for that concern cost analysis is taken into account through which cost can be
found out. Advantages and disadvantages are several essential factors which have to get
determine by management for budget and its planning and controlling.
TASK 1
P1. Uses and benefits of various managerial accounting systems
From: Management Accounting Officer
To: General Manager of Unicorn Grocery
Subject: Report on MAS benefits
According to Unicorn grocery, managerial accounting is a process which facilitate the managers
to take some adequate steps which enable them in their long term context. These are such
statement which are framed on the basis of short term basis which increase chances of
sustainability for a business organisation.
These are certain benefits which a firm can gain by adopting this methodology in
business. Unicorn grocery have to determine this fact in business and gain advantages of using
MA. By applying this concept in business, profitability and productivity get rises.
Majorly, there are certain number of MA systems identified which support in increasing
the profitability of business. Systematic working enable an entity to grab many market
opportunities and make production according to requirement as well. There are several number
of managerial accounting system are identify which are:
Job costing system: This process is applied on business at the time when an entity is dealing
with variety number of products. Unicorn grocery is dealing with distinct number of products as

they have to identify the appropriate inventory of products and services. This enable them in
gaining more satisfaction level of their users and increase profit margin as well.
Inventory management system: Inventory is a part of business whose maintenance is must.
Inventory management system facilitate an organisation to manage all the stock of a company
through which they become more capable to provide goods and services according to time
frame. Unicorn grocery have to update their inventory management system according to time
frame through which procurement of goods and availability of products will take place at right
time to right person.
Price optimising: At different price level every person respond to wards it in distinct manner.
Management have to determine the response of every user at different price level which get
facilitate through various channel of distribution. Thus, management have to determine the
optimum price level at which their company can ascertain maximum profit margin.
Thank You
XYZ
P2. Different methods of MA
From: Management Accounting Officer
To: General Manager of Unicorn Grocery
Subject: Different methods of Management Accounting
Management accounting system requires several number of reporting methods which enable an
organisation to prepare their strategies according to them. Reports are framed on regular basis
with an aim to ascertain all targets and objectives within specified time frame. On the basis of
various MA reporting, beneficial judgements get derived. Certain number of managerial
accounting reports are:
 Budget report
 Inventory and manufacturing report
 Account receivable aging report
 Job order cost report
A business report is an orderly and objective communication of factual information that
serves some business purpose. It a written form of communication, it’s an important instrument
to the communicative need of all types of organization. They contribute to the decision making