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Management Accounting and Reporting

   

Added on  2020-06-06

19 Pages5255 Words74 Views
MANAGEMENTACCOUNTING

ReportFrom: Management Accounting Officer To: General ManagerSubject: To write a report to GM covering management accounting reporting and its varioussystems together with various cost accounting techniques and planning tools. Theirimplementation can assist in attaining organisational objectivities.

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting and essential requirements of its different types...........................1P2 Different methods used for management accounting reporting.............................................4TASK 2............................................................................................................................................6P3 Marginal and Absorption costing...........................................................................................6TASK 3............................................................................................................................................3P4 Different types of planning tools used in budgetary control..................................................3TASK 4 ...........................................................................................................................................5P5 Organisation response towards financial problems by using management accounting.........5CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................82

INTRODUCTIONManagement accounting is one of the most crucial and difficult task of businessorganisation. It is the process that involves identification, analyses and presentation of financialdata. The planning, decision making and control can only be performed well with the use ofinformation provided by management accounting. It generally involves the methods andconcepts necessary for the purpose of effective planning, to choose best alternative action ofbusiness, and to overall control the performance of firm. Data is gathered by by financialaccounting department and presented in such a manner that best suit managerial needs andobjectives. It also contributes in reviewing policies decisions of an enterprise. Unicorn Groceryis an cooperative firm, headquartered in England. They follow flat organisational structure andwith the same equal rates of pay. The system of management accounting provides administrationwith the reports and useful information that help in aspect of decision making. It thus, supportadministration to build up strategies to gain competitive advantage over its rivals. TASK 1P1 Management accounting and essential requirements of its different typesManagement accounting helps to know the possible causes of profit and loss of businessorganisation. It generally studies the impact of factors that influence profitability. It involvesconcept of Ratio analysis, Cash flow and fund flow statement, Marginal accounting, Cost-volume-profit analysis, Budget and Budgetary control etc. It provides benefit of successfulplanning and analysis. Making financial information more reliable and useful is the key aim. Forthe smooth functioning of business operations, managers have to take several decisions based onthe information available. Management accounting fulfil such requirement of business managers.Unicorn Grocery is a firm that engaged in providing quality products to its customers.Administration of such business organisation need effective decisions such as purchase decisionof products. Such grocery stores buy in bulk from their suppliers. Which suppliers have goodrelation with the enterprise and up to what extent they will provide goods on credit, their pasthistory are all seen by manger before taking any decisions. Such information is provided bymanagement accounting by preparation of accounts payable reports. Manager need informationrelated to availability of cash, account payable and receivables balances and revenue generatedfrom selling products. Organisation prepare budgets such as cash budget, purchase budget, sales1

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