logo

[PDF] Management Accounting Assignment

   

Added on  2020-01-28

16 Pages4194 Words87 Views
MANAGEMENTACCOUNTING

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1 ...........................................................................................................................................1P1 Explain Management Accounting and essential requirements of different types ofmanagement accounting systems................................................................................................1P2 Different methods used for management accounting reporting.............................................3TASK 2............................................................................................................................................4P3 Ascertaining net profit using absorption and marginal costing.............................................4TASK 3............................................................................................................................................6P4 Advantages and disadvantages of different types of planning tools used for budgetarycontrol.........................................................................................................................................6TASK 4............................................................................................................................................8P5 Comparing how organisations are adapting management accounting systems to respond tofinancial problems.......................................................................................................................8CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12

INDEX OF TABLESTable 1: Income statement using marginal costing method.............................................................4Table 2: Income statement using absorption method......................................................................5

INTRODUCTIONManagement accounting can be defined as a profession which involves identifying,analysing, interpreting and evaluating information and data to take timely decisions and assist themanagement in formulation and implementation of strategies to achieve organisational goals. Forthe current study, the chosen firm is Unicorn Limited which works in the field of retail sectorwith the net worth of 4102 GBP and also working with less than 50 employees. Managementaccounting helps to play an important role and this report states that how organisations usemanagement accounting systems and techniques in order to achieve success and to survive in themarket. In this current report, different types of management accounting systems have been usedwhich includes inventory management, job costing, prize optimizing system etc. it also includesvarious accounting techniques to ascertain the costs incurred by the chosen company andanalysed by the income statements which includes marginal costing and absorption costingtechniques. It also considers use of planning tools for budgetary control and also comparing howorganisations adapt management accounting systems.TASK 1 P1 Explain Management Accounting and essential requirements of different types ofmanagement accounting systemsManagement accounting focuses on deriving information which is available for thebusiness for decision-making and this information help the managers to ensure that no decisionsin this organization should be delayed because it will in turn affect the productivity of anorganisation. It aims at providing accurate and timely information required by the managers tomake short term decisions (Chenhall., 2015). Management accounting with the help of activitybased costing which helps the managers to decide what to produce, how much to spend on theproduct produced etc. Management accounting involves various types of management accounting systemswhich includes cost accounting system, inventory management system, prize optimizationsystem etc. Cost accounting system:it is a management accounting system used by organizations so as to estimate the cost ofproducts which are produced by the firm for analysing profitability. It helps in forecasting the1

End of preview

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

Related Documents
Financial Accounting Report 2022
|25
|5377
|39

Report on Cost Analysis Techniques
|13
|2074
|28

Management Accounting Solution Assignment - Galway plc
|14
|5174
|45

Management Accounting and Costing Methods
|17
|1198
|29

Report on Application of Marginal and Absorption Costing
|12
|2958
|36

Application of Marginal and Absorption Costing Methods in the Preparation of Income Statement
|11
|2744
|82