Unit 5 – Management Accounting

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1) Discuss the management accounting and different types of management accounting
system.........................................................................................................................................4
P2) Explain various method of management accounting reporting............................................5
TASK 2............................................................................................................................................7
P3) Produce cost in order to using proper techniques for cost analysis such as income
statement, marginal and absorption costs...................................................................................7
TASK 3..........................................................................................................................................12
P4) Discuss the advantages and disadvantages of different types of planning tools in order to
used budgetary control..............................................................................................................12
TASK 4..........................................................................................................................................14
P5) Differentiate between two enterprises in order to effectively adapting management
accounting system.....................................................................................................................14
CONCLUSION ............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
It is process which are used by most of an organisation in order to properly allocated
resources as well as smoothly run the business activity. It is method which refers to manager are
effectively implementing in order to making decision due to accomplishing organisation goal
and objectives. Management accounting is process which are helpful to estimation of cost and
expanses in order to attained organisation profitability and productivity. The report is about Pearl
Chartered Accountant which are situated in UK and basically accounting firm which are
guidance to connect catering services of management accounting and effectively developing
proper record and transaction (Abdusalomova, 2020). It includes accomplishing all the detail
regarding financial function as well as performance, liabilities, accounts receivable, inventory
and budget report to solve the financial challenges. It includes make comparison between the
two enterprises in order to dealing financial aspect different way as well as follow the different
structure.
TASK 1
P1) Discuss the management accounting and different types of management accounting system.
It is process which refers to management accounting utilisation various tool and
techniques in order to managers take effective decision. It is different from financial accounting
in order to utilising various process as well as methods. It is essential to identify, analysis and
communicate accounting methodology in order to properly allocated the financial resources. The
main aim and purpose of this process which refers to effectively communicate and properly
allocate financial resources due making effective decisions. It is approach which refers to
financial information and statement are developed in order to managing business properly.
Management accounting utilised various resources in order to properly maintaining record which
effectively using by organisation. In context of Pearl Chartered Accountant, it includes
Accountant provide guidance in order to developing client connect catering services because
properly managing business due to preparing proper records such as trading, profit and loss,
balance sheet (Abdusalomova, 2019). It is process which refers to effectively taking decision
properly in order to sale product, analysis and many more. There are various kinds of
management accounting which are discussed below.

Inventory management system-: It is system which refers to effectively evaluating and
monitoring stock and asset in order to properly managing business operations. It is essential to
managing inventory system so used various method such as EOQ, JIT and ABC analysis in order
to smooth flow inventory. In context of organisation, it is essential to properly managing
inventory in order to achieving organisation goal and objectives. It considered properly
allocation of resources in order to managing expanses.
Job costing system-: It is system which refers to effectively identify and analysis need of
product so accordingly manufacturing quality and quantity. It involves properly managing
costing system in order to effectively managing costing in order to properly track product and
services (Alsharari, 2019). It includes utilisation various method and procedures so identify
product and services in order to effectively fulfilling customers need and demand. It consist
properly estimation of product and services in order to customer receive product, price, received
order and record cost due to developing final report and providing to accountant. It involves
effectively managing demand and supply of product and services.
Price optimising system-: It is system which refers to effectively maintaining price of
products in order to proper estimation of different product as well as analysis the various
situation of market. It is process which refers to customers set prices in order to managing price
of product and services in order to demand of particular product and services. It includes
maintaining demand of market and offered various product at different prices so organisation
using various promotional strategies.
Cost accounting system-: It is system which refers to properly estimation of price of
products and services which are helpful in order to increasing effectiveness of organisation. It
considered as cost accounting process refers proper costing and managing the expanses of
organisation (Drury, 2018). It is essential to proper estimation of cost of products in order to
employees of an organisation participated and coordination in order to fulfil customer need and
demand of products.
Therefore, it includes connect catering services in order to properly managing accounting
process in order to proper allocation of financial resources due to taking effective decision. It is
essential to managing system which refers to taking effective decision and enhancing
profitability. It includes properly managing information and communication in order to