Unit 5 – Management Accounting

Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explaining management accounting and providing some essential requirements of various
types of management accounting systems:..................................................................................1
P2 Explaining different methods used for reporting of management accounting:......................2
M1 Evaluating benefits that management accounting systems persist as well as their
application within business:.........................................................................................................4
D1 Critical evaluation of management accounting systems and reports in integration with an
organization:................................................................................................................................4
TASK 2............................................................................................................................................5
P3 Calculating costs with the utilisation of appropriate techniques of cost analysis and
preparing income statement by using marginal as well as absorption costs:...............................5
M2 Accurate application of management accounting techniques and production of financial
reporting documents:...................................................................................................................8
D2 Producing financial reports which accurately applies and interprets data for activities of
business:.......................................................................................................................................8
TASK 3............................................................................................................................................9
P4 Explaining advantages and disadvantages in relation to different types of planning tools
that is used in budgetary control:.................................................................................................9
M3 Analysing uses of different planning tools along with their application for preparation of
budget:........................................................................................................................................11
TASK 4..........................................................................................................................................11
P5 Comparison of ways in which management accounting systems are adopted as a response
to financial problems:................................................................................................................11
M4 Analysing how management accounting leads to solution of financial problems in an
organization which lead to sustainable success:........................................................................13
D3 Evaluation of planning tools as a response to solution of financial problems for success of
business:.....................................................................................................................................13
CONCLUSION..............................................................................................................................13

REFERENCES:.............................................................................................................................14
.......................................................................................................................................................14

INTRODUCTION
The term Management Accounting is refers about procedure of keeping record that
enhance to internal information which effectively information about company is having strategic
decision through betterment for stabilise organisation which is formulated (Abdusalomova,
2019). Through helps whee the internal stakeholder are enhance their work responsibility to
commence for internal manager, employees, executives are better mapping all facts and figure
towards performance in market. It also helps towards external effective determine through actual
status of the enterprise in effective manner. The major objective of preparing management
accounting that to better maintain overall financial structure towards better consultancy firm in
making established towards United Kingdom.
As per this report, it is taken company such as Capital Joinery Ltd. It is a medium scale
business which is having where they tend to provide better services of financial products as well
as consulting towards furniture made to optimum quality that get to attain more competitive
advantages by following United Kingdom legislation by reducing bills. They ensure as their
every furniture to allow better traditional modern look alike. In this report the topics are covering
about requirement for different types of management accounting system. Different method in
assort in accounting report. Cost using appropriate technique for costing analysis for prepare an
income statement, to elaborate about advantages and disadvantages types of planning tools used
for budgetary control. By adapting management accounting system to better respond to financial
problem.
TASK 1
P1 Explaining management accounting and providing some essential requirements of various
types of management accounting systems:
Management accounting is the procedure of examining and communicating company's
data with managers, so firm can observe the performance from plan of action and enhance it.
Management accounting system enables managers to Capital Joinery to adequately monitor
business operations and improvise decision making by management. Mentioned below different
type of management accounting system along with its essential requirement:
 Inventory management system: This technique helps in tracking position of inventory
in an organization. It keeps record of entire procedure of Capital Joinery from its
1