Research Project - Dell | Management Accounting Types | Report System

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MANAGEMENTACCOUNTING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Explain management Accounting and types of management accounting system required...1P2 Explanation on various methods for management accounting reporting...............................3TASK 2............................................................................................................................................5P3 Calculate net profit by adopting absorption and marginal costing and explainationdifference among these management accounting techniques.....................................................5TASK 3..........................................................................................................................................10P4 Explanation on advantages and disadvantages of different types of planning tools that canbe used for budgetary control for organisation.........................................................................10P5 Use of management accounting system for financial problem............................................12CONCLUSION.............................................................................................................................14REFERNCES.................................................................................................................................15
INTRODUCTIONInformation regards to companies financial and non-financial which are used by managersfor making important decisions of the organisation in effective manner. Thus, information can beproviding the organisation in detailed involves mainly divisions, tasks, individual activities andproduct etc. In the present research project, there is study on the different types of managementaccounting and also discussion on types of methods for management accounting reportingsystem. Further, there is a explanation on different types management techniques which used byDell company to make comparison on net profit. These are absorption costing and marginalcosting technique which is applied by firm. Along with that, there is detailed study on advantageand disadvantages on various tools of budgeting. In research project the ending portion ofresearch project shows how management accounting system resolves company’s financialproblems in effective manner.TASK 1P1 Explain management Accounting and types of management accounting system requiredToManaging DirectorDELL CompanyDate: 24 June 2017Subject: Management accounting systemManagement accounting-It is a process in which there is an information collectingfrom the financial as well as cost accounting to make analysis, interpret and present theseaccounting information. Thus, it helps the management to make daily or short-term decisions.The main aim of these accounting is assessing the risk, allocate the resources and makepresentation of financial statements. Therefore, the management accountants of Dell collect allthe financial information to make the day to day decisions that lead to run their business mosteffective manner (Yalcin, 2012). Management Accounting is used by manager of organisationfor the purpose of make important decisions regard to firm. It is related to accountinginformation gather for aim of controlling functions and make financial decisions effectively.Different types of management accounting system that are essentials to the Dell companyTraditional cost Accounting:The method is used to allocate the cost of production of1
those goods that are manufacture by the organisation. The traditional method that majorlyinclude in it are the process costing, job order and batch costing. Therefore, the process is thattype of methodology used in the accounting that collecting the direct cost and allocating theindirect cost that are used in the production process. Whereas, in the batch costing is similartype of order costing in which each batch have a separate cost to give a batch number.Lean Accounting:The lean accounting system is most useful for the Dell in themanagement accounting system as it helps them to minimize the overall cost through removewastages in the organisation. Most of the Accounting adopt these type of system to obtain thefinancial information immediately so, they can able to make necessary decisions for the firm.Thus, these accounting is generally used by the manufacturing company through which they canable to eliminate wastage, errors and increasing process. It facilitates the firm to understandtheir financial position in effective manner (Tucker and Parker, 2014). Thus, this informationhelp them to make the favourable decisions and control the management function so, there willbe no financial loss for firm in future time period. It resultant into improves the company'sgrowth, sales of products increase and customer value.Throughput Accounting system:This accounting system cannot be seen in thetraditional management accounting system as it mainly focus on the constraints that are underthe firm's production system. Thus, it helps the Dell to minimize all these constraints thatincludes material, labour as well as production capacity that are insufficient. It impactspositively on the company it will enhance the production capacity by minimize the cost for eachunit of output produced. There is a main advantages from throughput accounting system for anorganisation it influencing to mainly focus sales. For this reason , they make effective decisionsregard to product or services that directly leads to increase firm's sales effectively. Along withthat, the Dell company adopt the management accounting system encourage them to focus onthe entire system rather than on particular areas of investment. It able them to find out the costof production that incurred from the manufacturing of laptops and tablets etc. The cost involvein it are related to salaries of workers, insurance and utilises etc. Further, these accountingimproves the expenses that are incurred while investing by three ways include minimize fixedcost of direct materials and enhance the throughput.Transfer pricing-It can be define as per the taxation and accounting if company2
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