Management Accounting Systems and Reports in Excite Entertainment Ltd

MANAGEMENT
ACCOUNTING

Table of Contents
INTRODUCTION...............................................................................................................3
TASK 1 ..............................................................................................................................3
Section (A)......................................................................................................................3
Section (B)......................................................................................................................5
TASK 2...............................................................................................................................8
TASK 3.............................................................................................................................10
Section (A) ...................................................................................................................10
TASK 4.............................................................................................................................12
Section (B)....................................................................................................................12
Calculations:....................................................................................................................13
CONCLUSION.................................................................................................................14
REFERENCES................................................................................................................15

INTRODUCTION
The management accounting is a systematic accounting approach which is
assigned in process of gathering financial and non financial data of business entities in
order to prepare internal reports (O’Grady, Morlidge and Rouse, 2016). These reports
are widely used by different kinds of department of business entities for better
management of various kind of activities and operations. The basic aim of project report
is to demonstrate understanding about detailed concept of MA. The project report is
based on Excite entertainment limited company which operates in entertainment sector.
The company is located in United Kingdom. The project report covers about different
kinds of management accounting systems (MAS), MA reports and budgets. Along with
role of various kind of MAS is demonstrated under the project report in detailed manner.
TASK 1
Section (A)
(a) Comparison between MA and financial accounting:
Basis MA Financial accounting
Data gathered In this accounting both kinds of
data is gathered by accountants
including monetary and non
monetary.
On the other hand, in this
accounting only monetary data is
gathered.
Outcome This accounting is being applied by
business entities in order to
produce internal reports that help to
managers.
While this accounting is applied
by companies for preparation of
financial statements.
Presentation of
reports
Under this accounting internal
reports are presented only to the
internal stakeholders.
On the other hand, under this
accounting financial statements
are presented both to internal
and external stakeholders.

(b) Cost accounting system-It is an accounting system that is associated with keeping a
detailed record of incurred cost in different operations. With the use of it companies can
aware about actual financial position, this is so because under it actual cost is
compared with estimated cost. Basically, this accounting system is essential for finance
department of companies because with the use of it they prepare the financial plan as
well as allocate the financial resources into activities. Under this accounting system
below mentioned costs are included that are as followings:
 Direct cost- Direct costs are costs that are accountable specifically to a cost
entity. Several overhead costs that can be solely attributed to a project could also
be categorized as direct costs (Ahrens and Khalifa, 2015).
 Indirect cost- Indirect costs are costs that can not be accounted for directly by a
cost item. Indirect costs may vary or be solved. Indirect costs involve costs
related to regime, personnel and safety.
Such as in the context of selected company, Excite entertainment limited their financial
team use this accounting system that help them in keeping cost minimum. As well as in
proper allocation of available funds into different kind of activities of production.
(c) Inventory management system- In this accounting system of MA, the inventory of
companies is managed in an effective manner. Along with it traces the cost which
occurs in process of storing goods in warehouses and stores. The key objective of this
system is to create balance between the demand and supply of goods of companies.
Along with it is essential for organisations for providing time to time report about stored
material in the warehouses so that they can take decisions about acquiring new material
as well as production. Herein, the aspect of above Excite entertainment limited, they
implement this accounting system. Due to this accounting system they get able to track
the record of material of organising the events such as music system, display system
etc. As well as their department take decision for purchasing newer equipments as per
the available quantity in the warehouses.
(d) Job costing system- It has been defined as a type of accounting system that is
related to the allocating the production cost of a particular unit of output (Burritt and