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Sample Assignment : Management Accounting

   

Added on  2020-11-12

20 Pages6153 Words376 Views
MANAGEMENTACCOUNTING
Sample Assignment : Management Accounting_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3LO 1.................................................................................................................................................3P1. Management accounting meaning and requirements of different management accounting 3Systems.......................................................................................................................................3P2. Presenting different methods for management accounting reporting...................................5M1. Benefits of management accounting systems and their application....................................6D1. Evaluating management accounting systems and management accounting reporting is ....7integrated within organisational processes..................................................................................7LO 2.................................................................................................................................................7P3. Calculating costs & preparing an income statement using marginal and absorption costs..7M2. Producing management accounting techniques and financial reporting documents...........7D2. Interpreting data..................................................................................................................7LO 3.................................................................................................................................................7P4 Explaining the advantages and disadvantages of different types of planing tools used inbudgetary control........................................................................................................................7M3. Different planning tools and their application for preparing and forecasting budgets........9D3. Evaluating planning tools for solving financial problems.................................................11LO 4...............................................................................................................................................13P5. Adapting management accounting systems to respond to financial problems...................13M4. Analysing how management accounting responds to financial problems.........................14CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16
Sample Assignment : Management Accounting_2
INTRODUCTIONThe term Management Accounting is defined as the process which is concern withpreparation of reports, statements and accounts related to the business operations & processeswhich provides information about finance, statistical data to the managers which assists indecision making process. The report is about IKEA, a Swedish multinational company engage inbusiness of designing, selling ready-to-assemble furniture, kitchen appliances, home accessoriesetc. This report will show the requirements of different management accounting systems alongwith the benefits and application within an organization. It will also define managementaccounting reporting methods adopt by organization. Further, the report will preparation ofincome statement for IKEA using marginal and absorption costs along with its interpretation.Budgetary control and its planning tools with its advantages and disadvantages used forpreparing and forecasting budgets will be explain in the report. At last, the report will disclosehow IKEA will adapt management accounting systems to solve various financial problems.MAIN BODYLO 1Management accounting meaning and requirements of different management accounting Systems.Management Accounting is a term which involves activity related to identifying,analysing, interpreting and communicating the important financial as well as statisticalinformation to the management of the organisation for successful accomplishment oforganisational goals and objectives. With the help of management accounting, managers arecapable of making business related decision either short term or long term (Boučková, 2015).The Management accounting technique like budgeting helps in increasing the operationalefficiency and productivity of the business as managers can formulate effective plans andstrategies, take decision on time with accurate information available to them. Thus, it helps inmaking business related plans, controlling cost, assessing the profit level to be achieved in theproduct lines with the help of various cost analysis methods etc.
Sample Assignment : Management Accounting_3
There are different types of management accounting systems which can be used by IKEA:Cost Accounting System – It is a method which is used by IKEA for estimating the costexpenses incurred for producing goods or cost of their products so as to ascertain the profitabilitysituation and performance level of the company. It helps IKEA in making the correct valuationof inventory and controls the cost expenses incurred in conducting the business processes. Thereare two main cost accounting system: Process Costing Method – It is a method of costing which helps in collecting separately allthe manufacturing costs incurred for each process. Job order Costing Method – This method of cost accounting system accumulates the costrelated to manufacturing process separately for every job. This method is suitable when thecompany is engaged in the production business of unique or distinct products.Price Optimisation System – This system of management accounting is a method whichhelps IKEA in understanding how customers will behave towards different prices assigned itsproducts and services with the help of different channels for distribution (Cooper, D. J., Ezzameland Qu, 2017). It helps in determining the best suitable prices which can be charged from thecustomers for its products and services which in turn helps the company in achieving its goalsand objectives of maximum profit with minimum cost of production.Job Costing System – It is a process which helps IKEA in determining the cost and otherrelated information of some specific product or activity or job process for customer knowledge.It involves Direct material, labour and overhead costs.This helps customer in costreimbursement as per the terms and conditions defined in contract (George, 2016). With the helpof this costing system IKEA can evaluate cost incurred for any stage of job work completed.Inventory Management System – This system helps IKEA in assessing and keeping acheck or track products through entire area and supply chain where business operation takesplace. It thus ensures continuity of workflow activity & improvements required if any, evaluatesamount of inventory available & reorder the required quantity before stock out situation arises.This system has two sub types:1. LIFO - LIFO stands for Last in, first out in which last inventory item purchased is sold first.
Sample Assignment : Management Accounting_4

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