TASK 11 P1 Management Accounting INTRODUCTION 1 TASK 11 P1 Management Accounting INTRODUCTION 3 D1 Benefits of management accounting system 4 M2 Preparation of Income state

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Management accounting and requirement of different types of management accounting
systems........................................................................................................................................1
P2. Different methods used for management accounting reporting............................................3
M1 Benefits of management accounting system........................................................................3
D1 Integrating management accounting system and reports with the processes of organisation
.....................................................................................................................................................4
TASK 2............................................................................................................................................4
P3 Calculation of Cost per unit on the basis of absorption costing and marginal costing
method.........................................................................................................................................4
M2 Preparation of Income statement on the basis of absorption costing and marginal costing. 6
D2 Financial Report....................................................................................................................7
TASK 3............................................................................................................................................8
P4 Merits and demerits of budgetary control..............................................................................8
M3 Analysing the use of different planning tools and their application in preparation of
budgets......................................................................................................................................10
D3 Evaluating response of planning tools for solving problem in Dell....................................11
TASK 4..........................................................................................................................................11
P5 Comparison between Dell and HP in adopting management accounting systems..............11
M4 Management accounting in respond to financial problems................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Management accounting is determined as a process whereby information related to
accounting is analysed, interpreted and presented. This is collected using financial and cost
accounting and it aids management in decision-making process. These management reports and
accounts assist managers for making day-to-day decisions, forming different policies and
regulating commercial activities of an organisation (Van Helden and Northcott, 2010). In this
process, performance is measured, risk involved is assessed and resources are allocated as well
as various finance related statements are presented to the management. It assists managing staff
to improve the performance by taking corrective measures. The present report focuses on
management accounting and importance of different types of management accounting systems of
Dell Inc. which is a multinational computer technology based company that is owned privately.
Company is engaged in the business of developing, selling, repairing and supporting computer
and other related products and services. Moreover, the assignment highlights difference between
absorption and marginal costing method in preparation of income statements. Further, the study
provides a critical analysis of different planning tools of budgetary control used by Dell Inc.
TASK 1
P1 Management accounting and requirement of different types of management accounting
systems
Management accounting is determined as a process whereby information related to
accounting is analysed, interpreted and presented. This is collected using financial and cost
accounting and it aids management in decision-making process. It is the combination of
management, finance and accounts. It provides management with timely and accurate
information which assists them in taking short term decisions (Christ and Burritt, 2013). All
kinds of information with regard to financial status, business strategies, etc. are projected in the
management reports which help in taking corrective decisions for improving performance of Dell
Inc.
The cited firm uses different types of management accounting systems that help in
carrying out its construction business effectively and efficiently. Various information are
required by the management, heads of various functions and departments, board of directors as
well as operational officers of Dell Inc. on weekly, daily or monthly basis which is provided by
management accounting. There are various considerations that are taken into account while using

management accounting systems. Management accounting encompasses cost of production
related to different products and services provided by the cited organisation. Following are the
main types of management accounting systems frequently adopted by company
2