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Managing Accounting of Nero Ltd Assignment

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Added on  2021-02-19

Managing Accounting of Nero Ltd Assignment

   Added on 2021-02-19

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Managing Accounting of Nero Ltd Assignment_1
Table of ContentsINTRODUCTION...........................................................................................................................1SECTION 1 (LO1 & LO2).............................................................................................................1P1: Management accounting and essential requirement for different type of managementaccounting systems.................................................................................................................1P2: Different methods for management accounting reporting...............................................2Benefits of management accounting system..........................................................................2Management accounting system and reporting integrated with each other...........................3P3: Use of marginal and absorption costing method for different calculation.......................3SECTION 2 (LO3 & LO4)..............................................................................................................8PART(A)..........................................................................................................................................8P4: Advantages and disadvantages of different kind of planning tools of budgetary control.8Use of different planning tools and their application for preparing and forecasting the budget..............................................................................................................................................10PART (B).......................................................................................................................................10P5: Comparison of organization to solve the financial problem with the help of managementaccounting system................................................................................................................10Management accounting system can lead to the sustainable success in relation to solving thefinancial issues......................................................................................................................12Planning tools for accounting respond accurately to solve the financial issues that leads to thesustainable success...............................................................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................14
Managing Accounting of Nero Ltd Assignment_2
INTRODUCTIONManagement accounting performs several roles and responsibilities such as identifying,summarising and analysing the financial statements prepared by the financial management onannual basis. Financial statement includes income statement, balance sheet, cash flow statementetc. It represents the actual financial position of an organisation which directs the manager tomake corrective actions in order to achieve stability and profitability. The present study is basedon Nero Ltd. which is engaged in manufacturing sector operated in United Kingdom. The reportincludes the definition of management accounting and benefits of its systems in the context of anorganisation. The report also discusses management reporting system, costing methods withcalculation of net profitability, budgets and its tools to control budget, application ofmanagement accounting system to resolve financial issues faced by an organisation.SECTION 1 (LO1 & LO2)P1: Management accounting and essential requirement for different type of managementaccounting systemsEach and every organisation need to record financial and non-financial transaction tomonitor the income and expenses of the organisation. For this management accounting isnecessary for the organisation that relates with the function of internal management whichdetermines that financial decision of an organisation are crucial part of management. In contextof Nero Ltd. management accounting help organisation in order to implement different activitiesand functions which are as follow:Price optimisation system- The price optimisation accounting system helps anorganisation to develop a framework that helps an organisation to determine the price of theirproducts and services. With implement of these system in the organisation both parties will bebenefited either they are customers or organisation. Like in the context of Nero this helps anorganisation to assign the affordable price to its customer (Bebbington, Unerman and O'Dwyer,2014).Cost accounting system- The cost accounting system plays an essential role inorganisation as it helps them to complete to determine the total cost of the organisation that theyinvest to perform different activities. It helps an organisation to evaluate the cost about each1
Managing Accounting of Nero Ltd Assignment_3
individual activity which determines company analysis actual profitability for the organisation(Cost accounting systems, 2013).Inventory management system- This type of accounting system helps an organisation tomaintain their inventory which includes raw material, finished goods stock etc. Like in context ofNero it is beneficial for them to track the records of their inventory due to which it is easy forthem to track the supply and demand of the inventories. Along with this it also helps them tomake decision effectively.P2: Different methods for management accounting reportingManagement accounting reports helps an organisation to record their actual performancesome of them is given below:Budget report- the Budgets helps an organisation to make the control the prices ofdifferent activities that is predicted or estimated by the management of organisation. In case ofNero it helps an organisation to match their actual performance with expected performance.Along with these it also helps an organisation to control the unnecessary expenses that increasecost of company (Bromwich and Scapens, 2016).Inventory report- This report contain the all the necessary information in detailed aboutthe stock that is currently present in organisation. In Nero Ltd. this helps the management toanalysis the cost which is related with the quantity and price of raw material. This documenthelps the organisation to maintain current level of inventory that helps to achieve their targets.Moreover this helps an organisation to order required stock to its suppliers. Cost accounting reports- This type of accounting reports helps an organisation toestimate the overall cost that is implemented by them to manufacture or product their cost. LikeNero Ltd. execute this activity in order to attain their goals that increase the information aboutcost. Along with this it helps an organisation to enhance their activities within minimum timeperiod (David, 2011).Benefits of management accounting systemManagement accounting systemBenefitsPrice optimisation systemThis accounting system helps an organisation todetermine the price of products and services.2
Managing Accounting of Nero Ltd Assignment_4

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