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Report on Management Accounting System of John Lewis

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Added on  2020-06-03

Report on Management Accounting System of John Lewis

   Added on 2020-06-03

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Management Accounting
Report on Management Accounting System of John Lewis_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1 ..........................................................................................................................................11.1 Various management accounting cost...................................................................................12. Relevance of costs: .................................................................................................................3CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
Report on Management Accounting System of John Lewis_2
INTRODUCTIONManagement accounting system is the process which is used by the company in order toassist the business for gaining sustainable development. Managerial accounting concerned to theprovision of an adequate information for decision- making, planning, cost control andperformance assessment. This report is based on the John Lewis which is the ready-madeclothing manufacturing company. In Managerial accounting, the various kinds of cost,manufacturing costs, product costs and period costs (Bennett and James, 2017).TASK 1 1.1 Various management accounting costThe key advantages of management accounting are:1.Reporting to management: This is the main role of management accounting for informingand advise management about the latest position of the organisation. This includesinformation about the performance of diverse departments on a consistent basis to themanagement that is helpful in forming an adequate decision. A management accountantlikewise works as an expert in order t overcome any current financial or other diverseissues of a company.2.Assist in decision making: Success of any company relies upon an adequate decisionmaking, which is in turn relied upon the informational networks which is rendered by themanagement accounting.3.Planning and formulating policies: A management accountant renders essential andrelevant information to attain targets of the organisation. Management accounting appliedregression analysis and time series analysis as estimating tools.There are various kinds of management accounting system which are as follows:Manufacturing costs: This costs are broken down into three main parts. direct material,direct labour and manufacturing overhead. Direct material costs are those costs which aredirectly connected to the production costs and it can be vary as per the quantity.Managerial cost – It is that cost which consist of worker and material cost. Also with thisit includes a fixed portion of fixed expenditure like of sales. It helps accountants of the referredinstitute to keep record over every expense that is taking place so that accordingly futuredecisions are taken. 1
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