Management Accounting Systems and Reporting in Connect Catering Services

MANAGEMENT
ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Define management accounting and their essential requirements of different types of
management accounting systems. ...............................................................................................1
P2. Different methods used for management accounting reporting. ..........................................2
M1. Benefits of management accounting systems and their application ....................................4
D1. Critically evaluate how management accounting systems and management accounting
reporting is integrated within organisational processes...............................................................5
TASK 2............................................................................................................................................5
P3. Calculate costs using appropriate techniques of cost analysis to prepare an income
statement using marginal and absorption costs. ..........................................................................5
M2. Accurately apply a range of management accounting techniques and produce appropriate
financial reporting documents. ..................................................................................................10
D2. Produce financial reports that accurately apply and interpret data for a range of business
activities.....................................................................................................................................10
TASK 3..........................................................................................................................................11
P4. Advantages and disadvantages of different types of planning tools used for budgetary
control........................................................................................................................................11
M3. Analyse the use of different planning tools and their application for preparing budgets and
forecasts. ...................................................................................................................................12
TASK 4..........................................................................................................................................12
P5. Compare how organisations are adapting management accounting systems to respond to
financial problems......................................................................................................................12
M4. Analyse how in responding to financial problems, management accounting can lead
organisation to sustainable success............................................................................................14

D3. Evaluate how planning tools for accounting respond appropriately to solving financial
problems to lead organisations to sustainable success...............................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Management Accounting guide their managers to provide a financial information and
meets day to day transactions in enterprise(Amiruddin, 2016). With relevance of management
accounting, it is mainly used by internal members of organisation and help managers to take a
business decisions efficiently and effectively. The report is based on Pearl chartered accountant
firm in UK and one of main client is Connect Catering Services is a family owned firm over 30
years and they are looking for grow their business to retail sector and sell a wide range of home
made pizzas. Several topics are covered in this report such as various types of management
accounting systems, methods used in management accounting report and to prepare cost analysis
techniques, calculate income statement using marginal costing and absorption costing, various
planning tools used in budgetary control and their benefits and limitations.
TASK 1
P1. Define management accounting and their essential requirements of different types of
management accounting systems.
Management Accounting: The concept of Management Accounting defines procedures
to identify, examine, interpret and communicating to managers and focus those information
related to products and services generated by company (Askarany, 2016). It help managers to
take short term and long term business decisions and it is mandatory to prepare financial
accounts. Within Connect Catering Services, managers used management accounting because it
aims to provide elaborated information related to goods and services and compare actual results
with standard result.
Management Accounting Systems: According to this systems, it is concerned with
internal systems of enterprise and provide a important information related to management that
evaluate decision making in firm. In case of Connect Catering Services, managers used this
accounting system to help and support by assembling and examine information, control
management to evaluate entity plan of action. It also help to recognize cost that firms measure to
reduce or destroy costs. Key essential requirements of all management accounting systems are
defined in context of Connect Catering Services are as mentioned below:
Price Optimization System: This system is said to be determines various price level at
different prices for its goods and services. With Connect Catering Services set prices according
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