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Determining the nature of management accounting system

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Added on  2020-10-22

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This report also consisting of various information and details based on management accounting methods in collecting information, recording in books and then communicating such information among the organisational personnel. Explaining concept of management accounting along with types of accounting system Management accounting: To records the generated information in the various books of accounts there will be use of various techniques and accounting methods.

Determining the nature of management accounting system

   Added on 2020-10-22

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UNIT 5 MA
Determining the nature of management accounting system_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1A. Explaining concept of management accounting along with types of accounting system.......1B. Defining some management accounting reporting techniques to be used in business...........3C. Ascertaining the fruitfulness of management accounting system in operational activities....5D. Determining the integration of management accounting and system in industrial aspect......5TASK 2............................................................................................................................................6A.1 defining the concept of marginal and absorption costing techniques...................................62. Preparing the income statement based on costing techniques such as marginal andabsorption....................................................................................................................................6B. Break even analysis.................................................................................................................8C. Application of management accounting techniques in accurately producing financial reports.....................................................................................................................................................9D. Accurate interpretation of financial reports which is reflecting the appropriate businessreports........................................................................................................................................10TASK 3..........................................................................................................................................10A. Ascertaining the advantages and disadvantages of several kids of planning tools forbudgetary control techniques.....................................................................................................10B. Application of planning tools in analyzing the budgets, preparing and forecasting them....12C. Comparing the organisation with others in context with meeting the financial obstacles....13D. Analysing the management accounting techniques will respond to meet the financialobstacles.....................................................................................................................................14E. Ascertaining the impacts of planning tools in meeting the organisational gains..................14CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15
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INTRODUCTIONThe accounting influences in the work practice is comprised on various concepts, rules andregulation which have been making adequate records of transactions. In the present report therewill be discussion made on the managerial accounting system and reporting techniques whichwill be beneficial to the Network Critical Solutions. There will be discussion based on variousreporting, costing and accounting techniques which will articulate the valid information amongthe accounting professionals in decision making. This report also consisting of various information and details based on managementaccounting methods in collecting information, recording in books and then communicating suchinformation among the organisational personnel. Moreover, there will be calculation relevantwith preparing the income statement by considering the marginal and absorption costingtechniques. Along with this, break even analysis will be based to determine the level of supplyand demand required in the operational practices.TASK 1A. Explaining concept of management accounting along with types of accounting systemManagement accounting:To records the generated information in the various books of accounts there will be use ofvarious techniques and accounting methods. Accounting is itself denoted as the method ofrecording transaction based on monetary influences. The income, expenditures as well as assetsand liabilities had been recorded in the various accounts to have a summarised informationregarding the financial stability and ability of a firm in meeting the financial challenges. On theother side, management is relevant with executing and directing the tasks in a manner which willenable the firm in attaining the targeted goals before deadline. However, in relation with the management accounting, there is management of overallaccounts which are being operated in the business in means of recording the reliable informationand summarizing it to have valid outcomes (Shah, Malik and Malik, 2011). Thus, such resultsand outputs help the professionals in decisions making and planning for the future operationalpractices. On the basis of such detailed analysis there will be formulation of adequate frameworkand policies to reduce the costs implied in each activity as well as for the future gains. However,there have been various benefits and profitability through implication of management accountingpractices in business activities of Network Critical Solutions.1
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Management accounting system:This system consisting of accounting details relevant with all the units and areas ofoperations had been done in Network Critical Solutions. It helps the managerial professionals inarticulating the business efficiency and encourage them to make innovative as well as accuratedecisions for the future operations. However, management accounting system is costs of variouselements which are to be considered by the accounting professionals such as:Job costing:This is a specific accounting methodology which is consisted of information relevantwith activities performed by the organisation. Therefore, there will be analysis over the costsimplicated in each operational activities of the firm. Mostly in the manufacturing units there havebeen use of costing techniques which is consists of the information such as cost of material,labour and overheads implied in producing a unit (Job costing, 2017). Thus, such ascertainmentof costs will define the charges to be levied on the products it also articulates the prices whichare to be charged from consumers. Along with this, it will also help the business in internalplanning and policy making for reducing such costs. It can be through changing the suppliers,reducing the labour force as well as replacing them with robotic arms etc.Batch costing:By considering the concept of job costing technique where batch costing is somehowsimilar to them. Therefore, there will ascertainment of costs such as indirect and indirect costswhich are implied in producing the product in the business (Bebbington and Thomson, 2013).Network Critical Solutions will have effective operational practices as if the professionalsanalyse the costs implied in a batch of production. It defines the total expenses which have beenmade in such process as well as motivate the professionals for making relevant changes in thepractices.Inventory management:In this system there will be use of various techniques and operational analysis overmanaging the inventories as per the demands arises in the market. Therefore, there will be properrecords of information such as total number of sales made in a period as well as efficiency ofbusiness in producing the units which will meet the consumer demands in the market. NetworkCritical Solutions will have accurate ascertainment of the demands and efficiency as theymanage the accounts for inventory (Gupta, Pevzner and Seethamraju, 2010). Along aside, it will2
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