Sample Management Accounting : Assignment
Added on 2021-02-21
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MANAGEMENTACCOUNTING
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3PART 1...................................................................................................................................3A) Management accounting and requirements of different types of management accountingsystems...................................................................................................................................3B) Methods used for management accounting reporting.......................................................4C) Benefits of management accounting systems and its application within an organisation.5D) Evaluation of the way management accounting systems and management accountingreporting integrate within Eymen Ltd. processes...................................................................6PART 2...................................................................................................................................7Planning tools that are used in management accounting and its advantages and disadvantages7TASK 2............................................................................................................................................9PART 1...................................................................................................................................9Produce a portfolio of completed calculations and analysis on company financial statementsand income statements using variable costings......................................................................9REFERENCES..............................................................................................................................14
INTRODUCTIONManagement accounting is the procedure that helps the organisations to provide financialinformation and resources to the manager so that manager can make a right use of theinformation by analysing the same and making the right decision. (Bromwich and Scapens,2016). This process basically includes collection, analyses and reporting information about thedifferent operation that are been conducted in the business. Present study will include the basicneeds of various types of management accounting systems and in the report various methods areexplained for the management accounting reporting. This report is based on the Eymen Ltdcompany.Further, report calculates cost with the help of different techniques of cost analysis inorder to prepare an income statement with the use of marginal and absorption costs. Report willalso include advantages and disadvantages of planning tools that are used in budgetary control. TASK 1PART 1A) Management accounting and requirements of different types of management accountingsystemsManagement accounting is defined as a process in which financial information andresources are provided to the manager so that manager can make a right decision. Generallymanagement accounting is used by the internal team of the organization, and this is the onlything which makes it different from financial accounting. management accounting helpsfinancial information and resources are provided to the manager of the company so that theseinformation can be used by the managers for effective decision making process. This processusually includes collection, analyses and reporting information with respect to the differentoperation that are been conducted in the business. Management accounting systems:-Management accounting system is the internal systems which helps the company inmeasuring and evaluating different processes that can help in managing business financially. Inthese systems, financial information of the business are collected by the managers and thenreport is been prepared for internal use of the managers in order to come up with appropriatedecisions in order to run the business smoothly.The different types of management accounting systems are as follows:
Inventory management system:- As the name suggests it is an management accountingsystem that specify placement of stocked good and processes in Eymen Ltd.(Ismail, Isaand Mia, 2018). It involves processes that maintains stocked products that are assets ofcompany, raw material and finished products. These generally are placed at differentlocations as part of supply network so that regular and planned course of production canbe thereCost Accounting system:- It is a management accounting system which helps the EymenLtd in ascertaining the cost involved in a product or process to evaluate organisation’sprofitability. This management accounting tool is used to estimate the cost related toproducts so that they can analyse profitability of the business and also inventoryvaluation. It is basically used by manufactures of the business in order to record thedifferent production activities by using inventory system. Price Optimization System:- It is mathematical analysis thatEymen Ltduses in order todetermine customers respond at different prices for its offerings with the use of differentchannels. This system is used in an organisation to ensure that their products are sellquickly by satisfying the customers with respect to prices of product.Job Costing System:-Job costing system is used by the managers inEymen Ltd to assignand accumulate the cost related to manufacturing of individual unit of output. It isbasically used in the situation where items produced generally differs and have asignificant cost (Bromwich and Scapens, 2016). B) Methods used for management accounting reportingManagement accounting reporting is generally used by the managers in order to monitorthe performance of the Eymen Ltd.These reports are required quarterly, monthly, weekly andeven for daily purposes. Different methods that are used for management accounting reports areas follows:-Budget report:- Budget report is the tool in which the actual result is a comparison of theactual result with the actually setup budget of the company.This report is used by tEymen Ltd to analyse company's performance.The estimated budget is based on theactual expenses from the previous years and if the company had over budget than futureyears may required to have increased budget. Mangers of the firm use some of the funds
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