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Management Accounting | Management Accounting Systems

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Added on  2020-06-06

Management Accounting | Management Accounting Systems

   Added on 2020-06-06

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MANAGMENTACCOUNTING
Management Accounting | Management Accounting Systems_1
Table of ContentsFROM: MANAGEMENT ACCOUNTING OFFICER..................................................................1TO,...................................................................................................................................................1GENERAL MANAGER..................................................................................................................1ZYLLA COMPANY.......................................................................................................................1SUB: MANAGEMENT ACCOUNTING SYSTEM .....................................................................1INTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting and different type of management accounting systems...........1P2 Different methods used to management accounting reporting..........................................3TASK 2............................................................................................................................................5P3 Cost techniques and income statement as per marginal and absorption costing...............5TASK 3............................................................................................................................................7P4 Advantages and disadvantages of various type of planning tools used in budgetary control7TASK 4............................................................................................................................................8P5 How organisations are adapting management accounting system to respond financialissues.......................................................................................................................................8CONCLSUION ...............................................................................................................................9REFERENCES................................................................................................................................9
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FROM: MANAGEMENT ACCOUNTING OFFICERTO,GENERAL MANAGERZYLLA COMPANYSUB: MANAGEMENT ACCOUNTING SYSTEM INTRODUCTIONEffective management and operation are the prior requirements of an organisation.Management accounting is a known as a principle provides a path to manage the operations andfunctions in systematic manner (Meaning of managerial accounting, 2017). Managerialaccounting is considered as a synonym of management accounting. This assignment is preparedto explain the meaning of management accounting. Different type of management accountingsystems illustrate in this context. Cost accounting systems are discussed subject to deciding thecost of the product. Advantages and disadvantages of planning tools are characterised withpractical based situations. How organisations are adapting management accounting systems torespond to financial problems. TASK 1P1 Management accounting and different type of management accounting systemsManagement accountingThis is the process of recording the information, keeping the records, entries of monetaryand non monetary transactions. This information helps the managers and accountants to make themanagement accounting repost, financial reports and statistical information (Islam and Hu,2012). This is the system which helps to track the day to day transactions and events happenwithin the organisation. This accounting system is also considered as managerial accounting. The information,data and records provided under management accounting system are helpful to managers, stakeholders, business owners and financial institutions. These information helps the managers tomake strategies and business plans. Management accoutring majorly helps the internal audiencesand people of organisation.1
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As per definition given by IMA (Institute of management accountants), “ Managementaccounting is acknowledged as a profession. It remain connected with some managerial actionssuch as decision making, strategic planning and devising planing.” this also helps to keep thecontrol and managing the performance of employees with in the organisation.Management accounting is made of multiple accounting rules, financial regulations,accounting standards. By implementing this system in organisation, managers become eligible toanalyse the financial reports, cash flow statements and financial position statements. It also helpsto analyse the cost variances, variances analysis, inventory management and statistical analysis.Being a part of risk management and strategic planning this is illustrated as managerialaccounting. Various type of management counting systems are used by the organisation as perbusiness requirements and nature.Management Information system (MIS): Management accounting system is the systemwhich is associated with the effective management and operations (Parker, 2012). This is thesystem which is operated by the computer systems, artificial intelligence, advanced tools andsystem software, electronic devices and measurement tools. This system contains highinstallation and implementation cost. MIS system is used in large multinational organisations andbusiness, banking and financial industries and business which deals with complex equations andsolutions. Mangers and accounts could get the statistical information by MIS system. Budgetary control system: Aim and objective of this accounting system is to control theoutput cost and maximise the profitability of organisation. This system majorly used to controlmarketing techniques. This system is based upon forecasting the future cost with the help of pastrecords like financial information, budget reports, accounting reports and annual reports. Thissystem helps to interoperate the budgeted results and actual results. This accounting system helpsthe mangers to ascertain the cost of projects, controlling the cost and analysing the variances. Cost accounting System: This is the most adoptable accounting system used by theorganisations. This system is majorly used in manufacturing organisation and unit organisations.Managers and accountants would be able to determine the cost of per unit and service. Thissystem provides exact cost and data related to produced services and products. A firm becomeeligible to bifurcate the cost as variable and fixed and set profit margin. Cost accounting systemis made of diverse cost principles and assumptions. Process costing, job order costing, traditional2
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