P1 Concept of Management Accounting

Added on - Dec 2020

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Management Accounting
TABLE OF CONTENTS
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Concept of management accounting and their essential need..........................................1
P2: Various types of management accounting reporting methods.........................................3
M1: Benefits of using management accounting system.........................................................5
D1: Critical analysis of various reporting method and system integration............................6
TASK 2............................................................................................................................................6
P3: Different types of costing methods those are used for calculating net profit...................6
M2: Evaluation of various types of accounting tools and methods........................................8
D2: Evaluation of data gather from profit and loss statement................................................8
TASK 3............................................................................................................................................9
P4: Advantage and disadvantage of using planning tools......................................................9
M3: Evaluation of different planning tools and their application for forecasting................10
D3: Analysis of planning tools in order to reduce various financial issues.........................10
TASK 4..........................................................................................................................................10
P5: Comparison with other organisation to reduce financial issues.....................................10
M4: Analysing various use of planning tools to deal with financial problems....................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
INTRODUCTION
Management accounting is associated with preparing and delivering accurate as well as
timely financial data to any business manager so that they can make future decision in effective
manner. It is done with the aim to get more specific information about the company financial
position in last couple of years. It is considered as one of the fundamental aspects of business
administration that is done to get more reliable outcomes in near future time. The manager of
“Sollatek (UK)” will assist in managing overall business transaction that are done within an
accounting period. This project module aims at delivering particular information about different
types of management accounting as well as reporting system those are useful for the company.
Apart from this, various types of costing approaches those are useful in calculating net profit is
considered under the report. Use of advantage and disadvantage of planning tools taken into
account for budgetary control are discussed effectively. Comparison with various organisation is
being done to identify, how they are using management accounting to overcomes their financial
issues (Gates Nicolas and Walker, 2012).
TASK 1
P1: Concept of management accounting and their essential need
In the present era, it has been determining that most of the time accountant are looking to
make use of reliable system that can assist them in recording of various transactions that are done
within an organisation. It will be more helpful in organise and allocating resources more
effectively so that chances of wastage can be avoided. It is termed as effective presentation of
accountingdatathatused toprovidenecessaryguidancetooperatetheirbusinessmore
accurately.Accountantusesthissystem moreregularlybecausethey areresponsible for
analysing various financial as well as non-financial transactions into their respective format. The
role of management is to amend policies and regulations in respect to various accounting
statements that can be followed by the finance officer(Zainun Tuanmat and Smith, 2011). It
consists of various accounting systems and policies that are connected with a specific knowledge
while recording of data. This seems to be the act of making sense of financial and accounting
information those are useful for administration within Sollatek (UK). In contrast, it analyses and
results are kept in-house for all business leaders to make utilisation of decision making those are
helpful for the company in more effective manner.It is a periodic report for the company’s
entire department as well as managers.
1
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