(PDF) Managerial Accounting | Assignment

Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
A) Different types of Management Accounting System........................................................1
b) Cost accounting system......................................................................................................3
c) Inventory Management systems.........................................................................................4
d) Job Costing systems...........................................................................................................5
e) Distinct types of management accounting reports.............................................................5
f) Need of sound accounting system and importance of department producing timely.........6
LO 2.................................................................................................................................................7
A) Number of tickets sold to break even................................................................................7
b) How many tickets sold for making profit..........................................................................7
c) What profit would result if 8000 tickets were sold............................................................8
M2 Management Accounting Techniques..............................................................................8
D2. Financial reports that accurately apply and interpret data for a range of business activities
................................................................................................................................................8
LO3 & 4...........................................................................................................................................9
a) Use of budgeting as a planning and problem solving tool to deal with financial problem 9
b) Evaluation of how strong financial governance help to pre-empt or prevent financial
problems for Ever Joy Enterprises.......................................................................................11
M3. Use of different planning tools and their application for preparing and forecasting
budgets:.................................................................................................................................13
M4. Management accounting helps to solve financial problems for organisational growth:13
D3. Planning tools of accounting lead organisations to sustainable success:......................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Management accounting is the process, that helps for preparing the management reports
and accounts, that provide managers efficient and effective financial information to make the
decisions for the business. It helps the organisations to identify, measures, evaluate and interprets
the information to enable an organisations to pursue its goals. The Ever Joy Enterprise UK, is
being selected for the present report, which operate in leisure and entertainment industry. This
Ever Joy Enterprise is the client of a financial advisory firm KPMG, UK. KPMG is a financial
advisory firm in UK, look after the financial statements of the enterprise. The report talks about
the different types of management accounting systems and their importance for the company to
make the better decision in the company. Beside this, various types of management accounting
reports and allocation of costing according to its nature are also going to explained. Further, the
report will help in understanding of various kinds of budgets and the planning tools which used
in budgetary control by the organisations. The report also show the how management accounting
respond the financial problems of organisations and how planning tools are helpful for the
sustainable success of organisations.
LO1
A) Different types of Management Accounting System
Management accounting is the process of identifying, measuring, analysing, interpreting
and communicating information to the managers for the achieving the organisation goals.
Management Accounting can be important for the company Ever Joy enterprise for increasing
their revenues, this process helps management to reduce the irrelevant expenses. This process
helps in preparing charts, trends and budgets for the organisation, so with the help of these charts
and budgets, Ever Joy Enterprise can allocate the expenses accordingly for smooth functioning
of an organisation. The management have different plans and policies before them, this process
can help Ever Joy's management to select the plan which occurs minimum cost with maximum
returns (Parker and L. D., 2012).
Financial Accounting System
Financial accounting is special branch of accounting that keeps the track of a company's
financial transactions. The transactions are recorded, summarized and presented in financial
statements such as balance sheet, Profit and loss statement and income statement. Management
1