Types of Management System : Report
Added on 2020-01-16
22 Pages5518 Words228 Views
MANAGEMENTACCOUNTING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Explain management accounting and give essential requirement of various type ofmanagement accounting system..................................................................................................1P2 Explanation on different types of method used in management accounting reporting..........4TASK 2............................................................................................................................................5P3 Calculate cost by adopting appropriate techniques of cost analysis to prepare an incomestatement and also explain difference among marginal as well as absorption costing...............5TASK 3..........................................................................................................................................10P4) Advantages and disadvantages of various type of planning tool used for budgetary control...................................................................................................................................................10CONCLUSION .............................................................................................................................16
INDEX OF TABLESTable 1: Difference among marginal and absorption costing method............................................8Table 2: Variance analysis.............................................................................................................11Table 3: Responsibility accounting...............................................................................................11Table 4: Adjustment of funds........................................................................................................12Table 5: Zero-based budgeting.....................................................................................................12
ILLUSTRATION INDEXIllustration 1: Income statement through marginal costing.............................................................6Illustration 2: Income statement through absorption costing system...............................................7
INTRODUCTIONManagement accounting is the most important for each and every company as they areused by managers for the purpose of make decisions regard to business activities. The report aregenerated by the accountant on the weekly as well as monthly based that are regard to eachdepartment are finance, marketing, human resource and production. It assists management tomake the effective decisions as it show the company performance and profitability over aspecific accounting period. The present research project report are context to the R.L. Maynardin which there are less than 50 employees work and they generate profit annul turnover that isless than £500,000 (Shah, Malik and Malik, 2011). There is mainly discussion on managementaccounting as well as also study on the different type of management accounting system that areessential for the company. Thereafter, there is an explanation on various management accountingsystem and discussion on marginal as well as absorption costing. It shows that which techniquesis better to determine the net profit or loss among these two costing. Furthermore, there is also adiscussion on the various type of management system can respond the financial problem. TASK 1P1 Explain management accounting and give essential requirement of various type ofmanagement accounting systemGeneral ManagerR.L. MaynardManagement accounting is used by manager to make short-term decisions in which itinvolves management report and accounting information that provide accurately on right timewhen required. It usually generates weekly or monthly basis reports for the internal audiencewithin the organisation that involve managers of department and CEO. Thus, in thesemanagements accounting reports indicate that cash inflow, revenue generated through sales,account payable, stock, raw material and it also shows variance analysis. It is a just opposite offinancial accounting which produce reports for the internal stakeholder of an organisation. Theinformation presents in management accounting are used by manager for the purpose of makingdecisions are related to future time period whereas, financial accounting are show historicaldata. Therefore, it has some advantages that help companies by getting information they analysequality of product in which the reduce expenses (Harris and Durden, 2012). The R.L. Maynard1
used this information in which they develop master budget that reduce unnecessary expensesand enhance cash flow. The main benefits from these accounting they can easily forecast relatedto financial that involve impact of prices changes on economy, consumer demand and potentialsales etc. It directly facilitates financial returns from the function and operation of business. Management accounting is the process which support an organization in analysing andinterpreting the information effectively. With the help of this tool cited firm can manage itsoperations well and can make sound business decisions. In the modern business world it isessential for entities that to compare their performance with other competitors. This is possibleby using management accounting tools. By comparing financial statements of these firm's entitycan identify its loop fall and can improve their performance. Management accounting is essential for the growth of business. It helps in identifyingthe mistakes and making sound business decisions. These tools and techniques support an entityin making control over cost and improving cash flow in the corporation. The requirement of various management accounting system used by R.L. Maynard thatare as follows- Job order costing system: In this costing system, management accountant recordsexpenses incurred in manufacturing process. It includes expenditures on purchasing rawmaterials, labour and additional overhead (Kaplan and Atkinson, 2015). However, byanalysing these costs, price determination ideas are generated that affect production anddistribution system of R. L. Maynard. Therefore, decisions are made regarding allexpenditures and by which budget for further business operations is made affect furtherimplementation.Cited firm can use this management accounting tool, it can help entityin meeting with its objectives. Purpose of the company is to enhance its sales revenueswhich can not be possible until cited firm manage its records well. Job order costing isthe great tool that helps in identifying overhead expenses. By this way company will beable to allocate resource well that will assist in minimizing unnecessary costs. Thus, itwil be able to gain high profit. Cost accounting system: in this process system, all incurred expenses and gainedrevenue on business operations are identified. It impacts on profitability and2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Management Accounting in R.L. Maynard : Reportlg...
|22
|5316
|195
Management Accounting: Reportlg...
|20
|4826
|31
Types of Management Accounting with Benefits and Limitations : Reportlg...
|25
|6101
|168
(PDF) Management Accounting Assignmentlg...
|19
|4723
|454
UNIT 5 MANAGEMENT ACCOUNTING [pic]lg...
|21
|5373
|338
Report on Management Accounting and Its Benefits - R.L. Maynard Limitedlg...
|19
|5069
|63