logo

System of Management Accounting - Doc

19 Pages5425 Words405 Views
   

Added on  2020-10-22

System of Management Accounting - Doc

   Added on 2020-10-22

ShareRelated Documents
MANAGEMENTACCOUNTING
System of Management Accounting - Doc_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................4B. Types of management accounting report with its importance................................................5C. Merits of job costing and inventory management system along with its application............6D. Integration of management accounting system and report in organisation............................7TASK 2............................................................................................................................................8A.1 Explaining absorption and marginal costing........................................................................8A.2 Preparation of income statement by both methods............................................................10B Applicability of formula of Break Even................................................................................11C. Significance of task 2...........................................................................................................12D. Interpretation of task 2.........................................................................................................13TASK 3..........................................................................................................................................14A. Merits and demerits of planning tools with context of budgetary control...........................14B. Application of planning tool for analysing, forecasting and preparing................................15C. Comparing methods of management accounting system in context of financial problem...15D. Evaluating management accounting techniques for financial problems..............................16E. Identifying planning tools which can be used for solving financial problems.....................16CONCLUSION..............................................................................................................................17REFERENCES..............................................................................................................................18
System of Management Accounting - Doc_2
INTRODUCTIONManagement accounting is considered as most important aspect for any organization orindustry whether it is small or big. Whole report is classified in three tasks which is signifyingimportance of different management system and techniques. The present report is giving briefunderstanding about different system of management accounting techniques which are adoptedby Ovation system who is one of SME. As it operating with 23 employees but in propercondition. It will be discussing about various requirements along with its types. There is presenceof understanding on different reports such as performance report and many more than how theyare impacting organization with its significance. There is representation on importance ofintegrated management accounting system in Ovation system. In next task it is reflectingimportance of various costing methods such as marginal and absorption costing method alongwith income statement. There has been presentation of introducing new product which has beenanalysed by Break even and margin of safety with its significance and importance. In the lastpart it is replicating importance of different kinds of planning tool in context of budgetarycontrol along with its examples. It has also reflected its application, merits and demerits whichcan be applied. It has also specified comparison on adopting different management accountingsystem and problems with its solutions which lead to sustainable success of organization.TASK 1A. Defining management accounting with its requirement along with its typesManagement accounting replicates information in context of accounting information forformulating policies which has to be adopted through management and it must be able to assistits daily routine activities. It is used by management for performing its various functions such ascontrolling, planning, organising, staffing and directing. Management accounting is veryimportant to any organization as it increases the level of efficiency as its main advantages are ingiven series below:It helps in identifying objectives on the basis of specific information which is alreadygiven.It has huge contribution in preparing plan with appropriate analysis.It helps in providing better services to customer by proper control device of control as utdecreases price of product.
System of Management Accounting - Doc_3
It provides ease in providing judgement for identifying policy.There is presence of different budgetary techniques which enables measurement ofperformance.Efficiency of business has been increased by management accounting.Effective management control has been given by management accounting.There are various types of management accounting system which are elaborated asbelow:Inventory management: It is used for keeping record of various application, orders andits component of its production of goods. It usually manages inventory and stock of Ovationsystem. There is presence of various element of supply chain management and inventorymanagement consists of controlling and observing the orders of inventory along with its storageand amount has been controlled with amount of sale of product. In the present scenario, Ovationsystem is an electronic manufacturer organization so in this it manages inventory of its rawmaterials such as cables, barcode printers and different video surveillance equipment (Zhao, Liu,Zhang and Huang, 2017).Job costing system: It is replicated as system which is used for assigning different costof manufacturing to a specific individual product or different batches of product. It has its mainapplication during products are manufactured and they vary from each other.B. Types of management accounting report with its importanceOvation system is a SME but for reviewing performance for each employee andorganization it uses different reports such as:Cost report: In management accounting, manufacturing of any single item has beencalculated which includes labour, raw production overheads and any other cost which isused and its sum is distributed into production of goods. The formation of each product ofOvation system is briefed in this specific report. All items cost price has been comparedto its selling price which has been given by manager. The profit margin has beenestimated and monitored in this cost managerial accounting report. There is presence ofoptimum utilisation of resources of each department as this report clearly depicts itsoriginal picture.Performance report: The main objective of this report is to monitor performance ofovation system. Huge turnover has been generated by big organizations so in these
System of Management Accounting - Doc_4

End of preview

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

Related Documents
Management Accounting Concepts Assignment
|19
|5519
|181

Management Accounting Systems & Techniques
|20
|5703
|222

Management Accounting | Managerial Accounting | Assignment
|20
|5226
|62

Management Accounting Assignment | Ovation systems
|20
|5226
|26

Management Accounting System Application: PDF
|19
|5397
|249

Introduction to Management Accounting : Assignment
|19
|5040
|406