logo

Report on Methods Used for Management Accounting

15 Pages4044 Words86 Views
   

Added on  2020-01-28

Report on Methods Used for Management Accounting

   Added on 2020-01-28

ShareRelated Documents
MANAGEMENTACCOUNTING
Report on Methods Used for Management Accounting_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................................3TASK 1..........................................................................................................................................................3P1 Explain management accounting and states various kinds of management accounting systems......3P2 Explain the different methods used for management accounting reporting......................................3M1 Evaluate the benefits of various management accounting systems..................................................5D1 critically evaluate how management accounting systems and management accounting report used in an organization....................................................................................................................................6TASK 2..........................................................................................................................................................7P3 Calculate costs per unit order under absorption and marginal costing..............................................7M2 Prepare income statement under marginal costing..........................................................................7TASK 3..........................................................................................................................................................9P4 Explain advantages and disadvantages of different types of budgetary control................................9A) Compute standard costs of PVC sheet and also determine difference between actual and standard costs.......................................................................................................................................................10B) Compute materials price and quantity variance................................................................................10M3 Analyze the use of different planning tools for forecasting budgets...............................................11D3 Evaluate how planning tools helps in solving problems of Dell........................................................11TASK 4........................................................................................................................................................12P5 Comparison of Dell with another organization.................................................................................12M4 Analyze how management of Dell will respond to financial problems in achieving sustainable success...................................................................................................................................................12CONCLUSION.............................................................................................................................................13REFERENCES..............................................................................................................................................14
Report on Methods Used for Management Accounting_2
INTRODUCTIONRole of management has increases with the increasing competition in the market in whichbusiness will analyses its performance in order to gain benefit. Dell will be selected for the givenproject report who intends to use the expertise of management in improving their profitability by10%. This report is about explaining different tools of management accounting and standardcosting techniques.TASK 1P1 Explain management accounting and states various kinds of management accounting systemsManagement accounting us that steam which enhances the role of management inhandling complex files and various business transactions in the business. Managementaccountant are appointed in the business to control the performance of the firm in order toallocate tasks and duties (Otley and Emmanuel, 2013). It is that specialized service whichenhances the skills and the capabilities of an individual. The control needs to be imposed by anentity in improving the existing performance of the business in relation to its external market.The major concern of the management is to reduce its costs by optimally utilizing the existingresources in the business. There are various ways of management accounting systems helps inenhancing the overall value of the business which is given as below:Budgeting- It is common technique used by an entity in order to analyze their performance thatincreases the functional requirement of an entity. The current resources are analyzed in order topredict its performance in the near future. The budgets are prepared in different aspects such asmaster budget, expenses and sales budget.Forecasting- Trend line is that technique commonly used by an enterprise in analyzing theexisting resources in order to predict their future sales. These statistical measures like trendanalysis that analyses which improves the existing business performance of an enterprise.P2 Explain the different methods used for management accounting reportingJob costing- This technique is regarded as one of the important aspects of themanagement accounting in determining the cost of the products (Renz, 2016). The current
Report on Methods Used for Management Accounting_3
method will be useful for an entity in tracking costs incurred by the business which will becompared in relation to the sales and the revenue earned by an entity in a particular year. Themajor motive of this technique is that standards are prepared in order to enhance the existingprofitability of the business. The transactions are arranged in different jobs to attain all goals andthe objectives in order to gain competitive advantage over its variety of competitors. Thetracking will be easy for the firm as this would help in getting attention of all the customers whenthe business will categorize its expenses according to its need in order to earn higher profit byreducing its existing expenses.Process costing- This accounting technique is widely used in assessing the existing costingpatterns of all the products currently offered by the company given in the current situation that isDell. This costing technique will consider a particular process in which various expenses areallocates into two different forms such as direct or indirect costs of the total batch of the productsoffered to its variety of the customers. In this particular process costs are divided to each andevery singular item. The overall cost of products will get easily find out by determining singularcosts of every item included in the business. In the given case scenario, Dell has uses manual andelectronic process in which sub parts of making computer internally in the same organization tllthe last step of the whole process. Logistic process of passing the finished output from one endtowards the door step of the customers who directly purchases the finished product in form ofDell computers or laptop. In the end process, the amount of inventory used will be ascertained atthe end of the process of the business enterprise. Total costs incurred by an entity will beascertained by determining per unit cost of the product currently in which an entity deals in.Batch costing- It is that important costing technique which is slightly related with the jobcosting in which the selling price of the products are separately calculated for the sake of theowner (Kaplan and Atkinson, 2015). The sub parts of computers and laptop such as CPU, SMPS,fan, chip set are all the internal accessories to be used to finish the final output of making of thewhole product like computer and laptop in order to facilitate its variety of customers. Batchprepared by an entity are like clusters which will includes identical units of all the same productswhose cost per unit are calculated by dividing the total production cost of batch with the numberof units included in the overall batch of that particular products. This method is ideally used in
Report on Methods Used for Management Accounting_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Management Accounting and Systems
|12
|3481
|61

Management Accounting Assignment : Dell
|11
|3817
|780

Introduction to Management Accounting TABLE OF CONTENTS
|13
|3570
|206

Assignment on Management Accounting pdf
|13
|4091
|228

Management Accounting Assignemnt : Nero ltd
|16
|3601
|297

Budgetary Planning Techniques for Management Accounting Reporting
|15
|3868
|390