PDF- Management Accounting System

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Management accounting
Table of ContentsINTRODUCTION...........................................................................................................................1P.1 Essential requirement of management accounting system....................................................1P.2 Methods of management accounting reporting.....................................................................3M.1 Benefits of management accounting....................................................................................4D.1 Management accounting system and reporting elate with organization...............................5P.3 Prepare income statement using marginal and absorption costing........................................5P.4 Advantage and disadvantage of planning tool for budgetary control....................................6P5 Adapting management accounting system to respond to financial problems.........................9CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONManagement accounting is a process that helps in decision making. Books and financialstatements of organization prepare by managers for short terms and long term. So managementof organization evacuate all books of finance and take decision about investment and increaseprofit in organization. It also focuses on compare actual budget and required budget for properand systematic work (Maas, Schaltegger and Crutzen, 2016).Delloite is an accounting firm in United Kingdom and provide professional services. Itwas founded in 1845 by William Welch excite entertainment ltd and it headquarters situated inLondon. This firm provide service like audit, tax, management accounting, financial advisory,risk advisory and legal at global level. 286200 employees engage in this firm.This report will be cover requirement of management accounting system and methods ofmanagement accounting reporting, marginal and absorption costing, advantage and disadvantageof budgetary control and financial problems.P.1 Essential requirement of management accounting system.Management accounting system includes all financial records and books that helps inevaluate and analyze all things. Management of excite entertainment ltd. firm collect, analyzeand reporting about all information related to finance and operation. This accounting direct andregulate by management of organization. On the bases of this accounting it makes decision aboutinvestment, performance and evaluate that work of organization run proper or not according toplan. Management make plan, strategy, policies and rules for achieve goal and maintaindiscipline as well. So all data that relate to business and work of organization that includes cost,price, budget and profit and make decision after analyze by management. Followingrequirements of management accounting system :-Cost accounting system:- this system of accounting is very helpful and necessary forexcite entertainment ltd. because it provides all information about cost and price of products inorganization. It easily fixes and decide price and cost of products. This system use for makeestimate and make budget, standard cost and actual cost. Management of organization easilyevaluate and analyze all things and find gap between profit and cost. Many departments presentso it easily evaluates all performance cost and profit and make decision for improve work andmake strategies for increase profit through investment and expand business for futureimprovement and make profit. This accounting system use by all types of organization.1
Requirement :-This system of accounting helpful in control over cost of products and services thatorganization incur.Managers easily take decision about risk management and that solve problem.Budget prepare through this system very effectively.Inventory management system:- this management system use by all types of manufacturingorganization because this system record all entries and statements that helps in management ofstock of organization. Excite entertainment ltd. use this system for track and trace all stock andinventory related information and also analyze whole supply chain. It includes stock fromproduction to warehouse and warehouse to customers like whole seller and retailers. Sales ofproducts, order of products and deliveries these all process track by accounting firm. That helpsin gather and test of information about actual and accurate result and management oforganization get fair result so it easily takes decision about control of sales and purchase andincrease profit (Agrawal and Cooper, 2017).Requirements :-This system is very necessary for analyze and track every movement of inventory ofwithin organization and work in progress.It helps in evaluate operation and inflow and outflow of inventory.This system also helpful in analyze need of stock and available stocks so all cost andquantity of budgets and stocks are maintained.Job costing system:- it is a management accounting system and excite entertainment ltd. usethis system for evaluate profit and cost as per unit of products because this system useful formanufacturing organization that produce products according to demand and order fromcustomers. So different types of order receive by organization and it has to produce according todemanded design, quantity and units. It incurs more cost and time so organization can notevaluate about accurate cost so this system helps in analyze about fair and accurate things.Accounting firm use this system of accounting for analyze all things like cost incur for produceper unit and revenue earn on per items. So according to this result management of organizationmake decision that about profit and loss and increase order receive according to profit.Requirements :-This system need for calculate price, cost and profit as perv unit.2
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