logo

UNIT 5 : Management Accounting Assignment

18 Pages5254 Words106 Views
   

Added on  2020-09-17

UNIT 5 : Management Accounting Assignment

   Added on 2020-09-17

ShareRelated Documents
UNIT 5 MAN ACC
UNIT 5 : Management Accounting Assignment_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Management accounting and essential requirement of various kinds of managementaccounting...............................................................................................................................1P2 Enumerating various methods for management accounting reporting..............................3TASK 2............................................................................................................................................6P 3 Computation of marginal and absorption costing............................................................6TASK 3............................................................................................................................................9P4 Discuss kinds of planning tools.........................................................................................9P 5 Management accounting system to respond to financial problems................................11CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
UNIT 5 : Management Accounting Assignment_2
INTRODUCTIONManagement accounting is crucial branch of accounting helping management to takebetter and effective decisions for strengthening organisation internally. The present report dealswith Vectair Holdings Ltd which is engaged in the manufacturing sector. The report highlightsimportance of management accounting information which are used by the management to arriveat concrete results. Moreover, various types of such accounting is discussed and managerialreports are discussed as well. Various planning tools are discussed which help company to makedecision whether to invest in new project or not and helpful to check its viability. In relation tothis, marginal and absorption costing is also enumerated in the report. Furthermore, managementaccounting system help in responding to financial problems and thus, it plays significant role inthe company to achieve common targets in the best possible way. TASK 1P1 Management accounting and essential requirement of various kinds of managementaccountingManagement accounting is an effective decision making tool which helps management totake enhanced decisions for the betterment of the company. It is quite useful tool which addsvalue to organisation. The management takes this information for making effective internaldecisions for the betterment of the firm. The management accounting information is provided tomanagers only and as such, it is not imparted to various stakeholders'. By analysing information,management comes to know the progress of the company and as a result, if any deviations existthen in consideration of the same, decisions are taken so that overall productivity may beenhanced quite effectively. Vectair Holdings also uses management accounting information forstrengthening internal control and initiating healthy growth of the company (Chenhall andMoers, 2015).Management accounting is also termed as cost accounting as it controls various expenseswhich help to achieve production in the best possible way. Timely reports are prepared andwhich is handover to the management to analyse situation and then take decision thereon. Themain essence of management accounting information is that it blends or combines financialinformation with non-financial one and then produce picture of the company. This helps VectairHoldings to take effective decisions for the betterment of it. Thus, it can be said that management1
UNIT 5 : Management Accounting Assignment_3
accounting is required in the organisation to take enhanced decisions with much ease. In additionto this, various types of management accounting and essential requirements of them aredescribed below-Cost accounting:Cost accounting is the main type of management accounting as it imparts effectiveinformation to the manager for better decisions. Vectair Holdings Company is quite enhanced byimplementing cost accounting system to control costs in effectual way (Renz and Herman,2016). As the name suggests, cost accounting helps to reduce and control various expenses in theorganisation so that production can be achieved with much ease. Various costs such as direct,indirect, fixed and variable costs are analysed and consecutively reduced so that expendituresmay not exceed profit in any way. Thus, this branch of management accounting is essentiallyrequired in the organisation so that costs can be effectively controlled in the best possiblemanner.Price optimisation:Customer's behaviour should be analysed by the company so that prices can be easily setby the organisation. To overcome this problem, management accounting type i.e. priceoptimisation is used to generate effective results. This technique is a termed as a mathematicalanalysis which is carried out to determine how consumer reacts to price quoted by the company.In simple words, management analyses how customers respond to price set by the organisationof a particular product. This helps Vectair Holdings Ltd to take effective decisions regardingprice of the product and thus, it quotes that price on which consumers are ready to purchase itwithout any hesitation. It is quite essentially required in the company so that decisions regardingprices of the products can be easily achieved with much ease (Otley, 2016).Job costing:Job costing is effective tool basically for small organisation. As such, it is quite useful forVectair Holdings to control costs on various jobs performed in the production site. Job costing isquite helpful in firm so that expenses incurred on various jobs can be easily controlled andreduced to get results in terms of more profits. It is combination of various costs such asmaterials, labour and overhead which are incurred on a particular job. Thus, job costing is2
UNIT 5 : Management Accounting Assignment_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
UNIT 5 Management Accounting Report
|17
|5160
|60

Management accounting in the organisation 5 MNG
|18
|5249
|54

Management Accounting - Vectair Holdings
|20
|5062
|38

Management Accounting of Agmet
|18
|5320
|45

Management Accounting(MA) Assignment
|13
|3590
|186

Management Accounting System of Agmet Company : Assignment
|18
|5183
|402