Management Accounting: Requirements, Methods, Costs, and Budgetary Control

Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Necessary requirements of different types of management accounting................................1
TASK 2...........................................................................................................................................3
P2. Methods of management accounting reporting.....................................................................3
TASK 3............................................................................................................................................4
P3. Computation of costs.............................................................................................................4
TASK 4..........................................................................................................................................10
P4. Advantages and disadvantages of various kind of planning tools used for budgetary
control........................................................................................................................................10
TASK.............................................................................................................................................12
P5. Comparison of two organisation .........................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Management accounting are those techniques that guide business how they can control,
evaluate, plan and improve their performance while accomplishing their set desire goals (Omoro,
2020). It provide various tracks through which mangers can manage their financial operations
within their premises in order to rectify their errors and achieve their objectives. The practices
are made by inside controllers for the inside controllers in order target better performances and
systematic framework for the organisations. In this report we have consider Connect Catering
Services which a fast growing company from UK and they run catering service and run family
owed business. Now they are thinking to expand their enterprise by merchandising wide range
(vegan/ vegetarian/non vegetarian) of home made pizza to various superstores.
This report pays attention towards all requirements that are essential for various types of
accounting systems, methods that are require for management accounting reporting, advantage
and disadvantage of different tools of planning. This report also include calculation of cost with
the help of techniques of cost analysis for preparing income statements with absorption and
marginal costing. Further this report provides controlling tools of budgeting with their merits and
demerits.
TASK 1
P1. Necessary requirements of different types of management accounting
The idea management accounting states it is important for firms to recognise their
financial positions and take decisions depending on situations (Kwon and Lee, 2019). It helps
firms to take internal decisions so that they can perform internal functions. For organisations it
performs functions like implementing, analysing, measuring, interpretation and communicating
all informations to their managers. Systems of management accounting that can helps Connect
Catering Services are mention as under-
Cost Accounting Systems: This system states that entities should estimate the accurate
cost of their products so that can keep a check on cost activities and profit margins (Fullana and
Ruiz, 2020). With this system enterprises can evaluate their fixed and variable costs to measure
total production cost. In reference to Connect Catering Services, this system helps them to
examine how much cost they will derive from this expansion and how they can cut excessive
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