Management Accounting Systems and Cost Analysis

Management
Accounting
1

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Define management accounting as well as various kinds of management accounting
systems.........................................................................................................................................4
P2. Different ways adopted for administration accounting reporting..........................................6
M1. Benefits of management accounting systems......................................................................7
D1. Assessment of accounting systems as well as management accounting reporting...............8
TASK 2............................................................................................................................................8
P3. Calculate costs by adopting proper tools of cost analysis.....................................................8
M2. Application of different management accounting techniques & manufacturing effective
financial reporting documents...................................................................................................10
D2. Financial reports helps in understanding operational activities..........................................10
TASK 3..........................................................................................................................................11
P4. Explain advantages as well as disadvantages of various kinds of planning tools...............11
M3. Use of planning tools.........................................................................................................12
TASK 4..........................................................................................................................................13
P5.Compare how company are using management accounting systems to provide response to
financial problems.....................................................................................................................13
M4. Management accounting solve financial issues that can results in sustainable success.....14
D3. Planning tools to solve financial problems.........................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
2

3

INTRODUCTION
Management accounting is process related to financial data and information that
determine various processes related to research and administration of financial information in
such a way that assists company to make plan for upcoming period of time &maintain policy as
well as possess appropriate control over whole activity of company. In addition to this, the utility
related to accounting assists management for improvement of company during particular phase
of time period. It is not important for organisation to accept any kind of accounting related to
organisation as it requirements are depend upon objective of organisation. To maintain
management accounting, the chosen organisation is named as Connect Catering Services. It is
family-owned catering business located in Oxfordshire and their focus is on approaching
accountancy firms to provide advice on introduction of administration accounting system. This
report provides discussion regarding management related to system along with significance,
requirement related to reporting procedure used for appropriate method of cost analysis that help
in preparing income statement by using amalgamation cost & subsidiary cost. In addition to this,
it also increases involvement of planning tool along with advantages and its limitation in
adoption of management accounting system that help in providing solutions to all financial
problem that assists in offering direction for sustainable achievement(Hariyati, Tjahjadi and
Soewarno, 2019).
TASK 1
P1. Define management accounting as well as various kinds of management accounting systems
Management accounting
It is determined as a technical action that signifies accepting, assessing, recording financial
as well non financial information that help in taking appropriate decisions in respect of aim of
organisation. Therefore, there are different kinds of factor that assists in designing and also their
focus is on presenting proper financial statement. In addition to this, it is adopted by
management team of chosen organisation while improving short as well as long time
determination to conduct familiar procedure of organisation without any kind of issues.
Management accounting system
The concept related to management accounting is determined as a future oriented that
involves various activities and possess larger scope that help in reaching in respect of various
4