(solved)Methods of Management Accounting

Added on - Nov 2020

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ManagementAccounting
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting and essentials requirements of various type of managementaccounting systems................................................................................................................1P.2 Different methods used for management accounting reporting......................................1M.1 Benefits of management accounting systems.................................................................2D.1 Management accounting system and management accounting reporting.......................3TASK 2............................................................................................................................................4P3. Calculate cost using marginal and absorption costing.....................................................4M.2 Management accounting techniques and appropriate financial reporting document......6D2 Financial report that apply for interpret business activities..............................................7TASK 3............................................................................................................................................7P4 Advantage and disadvantage of various planning tools....................................................7M.3 Evaluation of various planning tools and their application for forecasting....................9TASK 4............................................................................................................................................9P5. Adaption of management accounting system to respond financial problems..................9M4. Evaluation of financial issues.......................................................................................10D3 Evaluation of planning tool for responding to financial problems.................................11CONCLUSION.............................................................................................................................11REFERENCES................................................................................................................................1
INTRODUCTIONManagement accounting forms an integral part of of economic knowledge with mainobjective to provide informative and analytical assistance to the firm. It helps managers to makerational and effective economic decisions on optimum and most efficient use of all limitedavailable resources. Rowlinson Knitwear is a small scale company which are the manufacturerand retailer of different types of garments such as school wear and corporate wear. (Zopiatis,Constanti and Theocharous, 2014). The report will discuss about various methods ofmanagement accounting and its techniques of cost analysis that is useful in preparing incomestatements. Moreover it will provide a detailed information about benefits and disadvantages ofvarious tools of planning. Further it will provide synopsis of ways in which company is utilizingmanagement accounting to deal with its various financial problems.TASK 1P1 Management accounting and essentials requirements of various type of managementaccounting systemsManagement Accounting can be described practical science of value creation and toaccount resources within company. According to Institute of Management Accountants it is aprofessional practice comprising various roles and responsibilities likeformulating plans andpolicies, preparing accounting reports, taking financial decisions etc. in order to achieveorganisation's pre determined objectives within specific timeline. It is aprocess to identify,analyse, interpret and communicate financial data and information so that management couldaccurately and timely prepare various financial reports and plans. It assists senior management ofRowlinson Knitwear to effectively handle routine business related tasks as per benchmarks andset standards that ultimately reflects down in firm's growth and success. Thus,managementaccounting assist management to attain sustainability and growth by minimizing its cost andexpenses incurred on various business operations (Zainun, Tuanmatand and Smith, 2011). Also,it provides a number of benefits that are mentioned below:Management accounting includes preparing budgets for monitoring and managingvarious firm related expenditures that are probable to be incurred in coming future. Thus,through management accounting Rowlinson Knitwear is able to identify, analyse and1
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