Management Accounting and Reporting: Essential Requirements, Methods, and Tools

Management
accounting

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
P1 Management accounting and its essential requirements of different types of
management accounting systems...........................................................................................3
P2 Methods used for management accounting reporting.......................................................5
TASK2.......................................................................................................................................7
P3 Calculating costs using suitable methods of cost examination to make an income
statement using marginal and absorption costs................................................................7
TASK3.......................................................................................................................................9
P4 Discuss advantages and disadvantages of different types of planning tools used for
budgetary control...................................................................................................................9
TASK4.....................................................................................................................................11
P5 Differentiate how enterprises are adapting management accounting system to respond
to financial problem.............................................................................................................11
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................13

INTRODUCTION
Management accounting can be defined as a process of management which is directly
associated with providing information regarding different financial resources of the
organisation and the accounts for identifying the costs as well as money implemented by the
firm for achieving profitability and given market (Alsharari and Youssef, 2017). There are
various functions which are included in the management accounting and directly related to
the communication of information related to different financial accounts of the organisation
to various stakeholders and interested party. In this present report the chosen organisation is
Tesco, discussion about various aspects related to management accounting with its national
valuation of its financial account. The British retail multinational giants which are selling
retail products with the market of UK as well as some global countries. In the beginning of
this report there is discussion about the management accounting and its essential requirement
for different types of management accounting systems (Christ, Burritt and Varsei, 2016).
There is also a discussion about different method used in management accounting reporting
system so that organisation can achieve its goals and objectives in an effective manner. In
middle of this report discussion about various cost is suitable method for exam in the cost
implemented by the organisation to generate income by the use of various financial accounts.
There is also discussion about different advantages and disadvantages of the organisation
while using the planning tool for budgetary control. in the end of this report discussion about
how different enterprises adopting management accounting system for responding different
financial problems and providing solution to these financial problems.
MAIN BODY
P1 Management accounting and its essential requirements of different types of management
accounting systems
Management accounting can be defined as that process within the organization which
is helpful to the organization in identification of various accounts and getting the financial
information related to these accounts. management accounting and also be defined as a tool
which is used by the manager of the firm to identify the current performance of the
organization or comparing it with the predetermined standards that whether the performance
of the organization is going towards the goals and objectives of the firm or not. Management
accounting is also essential for the organization in various decision-making processes where
it helped the firm in identification of the cost and taking the decision on the price and other

aspects of the product by considering the cause found in management accounting system
(Fleischman and McLean, 2020).
According to institute of management accounting "Management accounting can be
defined as that profession which is related to partnering in managing decision and making
device planning for increasing the performance of the organization by comparing the current
financial position stated in different financial accounts of the organization to de pre-
determined standards on the performance standard which are meant by the organization to
compare the performance of current. it can also be stated as a system of control their
organization monitor the cost in care by the firm and different activities by the use of
different formula and implementation of organization strategy to achieve its goals and
objective in a particular direction"
There is various kind of function in management accounting which have different benefits to
the organization some of these are mentioned below in relation to Tesco.
Profit maximization: management accounting is directly related to the maximization
of profit because it helps organization in identification of the various which are in the current
performance of the organization in relation to the predetermined standard performance. By
this test you can identify current affair for means and take effective decisions related to
profitability of the organization and will become more effective in the direction of profit.
Efficiency booster: one more advantage of management accounting to the Tesco is
that it helps organization in increasing the efficiency of different investor within the firm this
is because continuous evaluation of account help form in identification of various aspects
related to the performance of different individuals. Identification of this organization can
manage effective control on the cost as well as performance of different individual which
ultimately help in increasing the efficiency and managing the work of different individuals by
the help of proper evaluation.
Various systems that are used in management accounting
Price optimization system: it is that system which is used by the organization as a
calculation instrument which helps the manager in performing different accounting systems
for identification of the response related to the customer behavior and managing the prices of
product according to it. It is a best suitable method which is used by the organization to
determine the price of the product by identification of cost and other expenditure on