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Type of Management Accounting Systems

   

Added on  2021-02-19

20 Pages4486 Words16 Views
ManagementAccounting

Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1. - Management accounting and essential requirements of various type of managementaccounting systems:................................................................................................................3P2. - Different kind of methods used in respect of management accounting reporting:........5TASK 2............................................................................................................................................8P3. - Computation of costs applying appropriate cost analysis techniques to formulate incomestatement applying absorption and marginal costing:............................................................8TASK 3..........................................................................................................................................14Advantages and disadvantages of different types of planning tools used for budgetary control:..............................................................................................................................................14Comparison of business entities applying management accounting systems for respondingdifferent financial problems:...............................................................................................16CONCLSUION..............................................................................................................................18REFERENCES..............................................................................................................................19

INTRODUCTIONThe term ‘Management Accounting’ can be defined as that field of accounting which ismainly concerned with the preparation of reports and other relevant books that facilitatedecision-making across all organisational levels. Such decision-making activities can beattributed to the planning, controlling, coordinating as well as organising functions of abusiness(Bargate, 2012). Such functions ensure that the business is able to align itselfstrategically so as to deliver on its short-term and long-term goals competitively as well asachieve its mission and vision. This report aims to provide a comprehensive account on thevarious management accounting systems as well as report. In addition to this, the report alsoentails costing techniques along with their implications on net profit earned by a company. Also,different planning tools used for budgetary control, financial governance, Benchmarking andKey Performance Indicators have been discussed so as to give a view about development ofbudgets, identification of financial issues as well as their resolution. For this purpose, KEF Ltd, amedium sized manufacturing company has been taken into account that mainly operates in theManufacturing Sector. TASK 1P1. - Management accounting and essential requirements of various type of managementaccounting systems:Management or Managerial Accounting can be defined as a discipline whichencompasses different types of processes and systems that are relevant in the production,presentation as well as communication of financial reports that cater to the needs of differentstakeholders. It also aids in determining the strength of credit as well as inventory managementpolicies implemented by the top management so as to ensure that relations with creditors anddebtors are maintained effectively.It is important to note that every management accounting system has a unique set ofrequirements that make it essential for the business to assess before actually adopting andimplementing them across all enterprise levels. The main function of all these systems is togenerate accurate data regarding the processes they entail to be implemented in. Either directlyor indirectly, this information derived by utilising such systems helps the management to knowkey strength as well as weak areas internal and external to the organisation (Bouwman, 2014). In

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