Explaining Management Accounting and its Types

Project

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Explaining management accounting and its types.................................................................1
P2. Explaining different methods for management accounting report.......................................4
LO2..................................................................................................................................................6
LO 3.................................................................................................................................................8
P 4. Evaluating use, advantages and disadvantages for planning tools linked with budgetary
control.........................................................................................................................................8
LO4................................................................................................................................................11
Analyzing an application of the management accounting techniques that is been made by
different company in resolving their financial problems..........................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Management accounting is referred to as the process which is very useful in examining
the financial information of the particular company. This is a strategic procedure to analyse the
operations and cost of the business. This in turn is very useful for making internal financial
reports and also aid to managerial decision making. Management accounting is very important
because it helps in analysing the cost associated with carrying out operations of the business
(Cools, Stouthuysen and Van den Abbeele, 2017). This study will demonstrate, better
understanding related with the systems of management accounting. It also helps in evaluating
various methods which has been for management accounting reporting. Furthermore, this project
will include various range which has been associated with management accounting techniques.
This study helps in determining various use, advantages and disadvantages for planning tools.
This study will also compare various ways which organization may use to effectively respond to
several financial problems.
Excite Entertainment Ltd is an internet portal which was launched in the year 1995. It
tends to provide large variety of contents associated with weather, news, meta search engine,
instant messaging, etc.
LO1
P1 Explaining management accounting and its types.
Management accounting is the provision of financial data and advice to a company for
use in organization to development of business in effective manner. On the other side, financial
accounting is specialized branch of accounting which keeps track of a company about financial
transactions (Difference Between Financial Accounting and Management Accounting, 2018).
Both are different form each other which are shows below:
Basis Management accounting Financial accounting
Legal requirements The management accounting is
not requires proper ad legal
formalities to done and
standards for managing reports
In this requires any legal
requirements because this
creates only for managing data
and work properly because this
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for work in effective manner. is audited by an independent
CPA firms.
Format of presentation Management accounting have
specific format to present
reports within Excite
entertainment LTD company
(Manyaeva, Piskunov and
Fomin, 2016).
Financial accounting not have
specified format to present
reports in company.
Area of coverage within the
organization.
This covers most important
area within the organization is
to create the best decision for
company growth.
This covers only financial
information to parties outside
the organization.
Types of data In this management is used
monetary information data
types for prepare reports
(Höglund and et.al., 2016).
Financial accounting is requires
monetary and non monetary
data types and information for
preparing reports.
There are different types of management accounting system which are as follows:
Cost accounting system:
It is the technique which is enabled for Excite entertainment in cost estimation for various
activities for determine profitability and valuation of inventory. This system is main used by
company for determine different cost of products with the production department of Excite
entertainment company (Hopper and Bui, 2016). This includes direct and indirect material,
labour cost and fixed and variable cost. This helpful and effective for company to evaluate future
cost of production.
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