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Research Project R.L.Maynard-Mangement Accounting System

   

Added on  2020-01-28

16 Pages3860 Words104 Views
MANAGEMENTACCOUNTING

Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 Explain management accounting and its types......................................................................3P2 Explain different methods used for management accounting reporting................................5TASK 2............................................................................................................................................6P3 Calculate of net profit by using various costing methods......................................................6TASK 3............................................................................................................................................9P4 Advantages and disadvantages of various types of planning tools .......................................9TASK 4..........................................................................................................................................12P5 Comparison how organisation and how they respond to financial problems......................12CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15

INTRODUCTIONManagerial decisions are very vital for the organisation that gives the new blood to theorganisation. It manages all the resources, minimizing cost, control budgets and planning regardto business. It can be possible through the information that are provided in the managementaccounting that facilitate them in to making financial decisions regard to finance. The researchproject is context to the R.L. Maynard company in which it manager adopt various planningtools, management accounting system and reporting (Burritt, Schaltegger and Zvezdov, 2011).There is a mainly discussion on the management accounting and study on the different types ofmanagement of accounting system that easily responding financial problem. Thereafter, it thereis discussion on marginal costing and absorption costing techniques that are adopted by companyto prepared net profit. Further, there is a study on the explanation on advantages anddisadvantages of various types of planning tools that can be used for budgetary control. TASK 1P1 Explain management accounting and its typesManagement accounting is used by the managers in order to make effective decisionsregard to firm. The information includes in it are helpful for the manager to run their day to daybusiness operation in effective manner. Thus, it involves a accounting information that are usefulfor the management for the main purpose of performance management system, devising planningand also controlling in formulation of business's strategy. The main aim of these type ofaccounting is that to give proper advice to the managers regard to financial consequences offirms decisions, help in controlling financial aspects, also describe the effects of the competitivelandscape (Elbashir, Collier and Sutton, 2011). Therefore, it is different from the financialaccounting as it is always looking for future rather than historical data. R.L. Maynard companyused management accounting and it provide essential requirements of different type ofmanagement accounting system that are described below- Lean accounting-It together brings the control, performance measurement methods andaccounting which supporting the lean manufacturing introduction. It does not support thelean manufacturing but employed the lean methods. It mainly focusses on minimizing thecost of goods sold rather than determining the cost that are incur are the time ofmanufacturing process. There are several functions in these accounting that are performby the lean accounting that includes removing non-value -add procedure in reporting as

well as accounting. Further, give a clear understanding of probability in apposition toproduct lines and it generate a real-time report on regular basis. Thus, ignore the monthsend as well as historical week reports. Traditional cost accounting- It can be defining as a allocating the production expensesthat are produced at the time of manufacturing a goods. It is also known as a conventionalmethod as it assigning the indirect cost incur in factory at the time of manufacturing anitem. It includes mainly in it are the production machine hours, number of units producedand direct labour hours etc. R.L. Maynard adopts the traditional costing method in whichit assigns the manufacturing cost and it fails in allocating the non-manufacturing. Themain advantages from it is that to generate the financial reports as it assists them inproviding a value for COGS. Apart from this, with the advancement of computer andmachines now this system becomes outdated. It is bad for the management in theirdecisions-making process as it does non-consider the non-manufacturing expense. Throughput accounting- It is based upon principle and it is very new in themanagement accounting. It is an accounting through it identifies factor that facilitatethem in achieve its goals and objectives in effective manner. It mainly focusses on cashtransaction and ignore the costing as well as cost accounting. It does not assign all theexpenses such as variable and fixed cost as well as it also involves overheads related togoods that are offer by company (Elbashir, Collier and Sutton, 2011). It is a theory ofconstraints through which manager of a company can easily make decisions that arerelate to growth purpose. Transfer pricing- It is that price in which a government formulating the rules when oneenterprises transfer any kind of goods across borders. Therefore,it is used by themanagement accountant to determine the cost that are incur at the time of transactionamong division. Furthermore, these prices are normally set for the intermediate goodswhich are supplied through selling to buying division. The main advantage of this is thatit provides accuracy as well as fairness about the business entities as there are variousregulation are formulated in transfer price.

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