Unit-5 Management accounting

Management
accounting

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK 1............................................................................................................................................4
P.1. Management Accounting and important needs of various types of management
accounting system?.....................................................................................................................4
P.2. Methods used for the purpose of management accounting reporting ?...............................6
M.1. Management accounting system benefits and their application in context to organisation?
.....................................................................................................................................................8
D1 How management accounting systems and reporting is integrated in the organisation........8
TASK 2............................................................................................................................................9
P.3. Ascertain cost with the help of using suitable cost technique to make income statement by
using marginal & absorption costing?.........................................................................................9
...................................................................................................................................................12
M.2. Accurately apply a range of management accounting techniques and produce appropriate
financial reporting documents ?................................................................................................13
D.2.Produce financial reports that accurately apply and interpret data for range of business
activities?...................................................................................................................................14
TASK 3..........................................................................................................................................14
P.4. Explain advantage & disadvantage of various types of planning tools used for budgetary
control?......................................................................................................................................14
M.3. Analyse the use of different planning tools and their applications for preparing budgets
and forecast?..............................................................................................................................16
TASK 4..........................................................................................................................................16
P.5. Compare how company are following management accounting system to respond to
financial problems ?..................................................................................................................16
M.4. Analyse, how , in responding to financial problems, management accounting can lead
organisation to sustainable success ? .......................................................................................17
D.3 Evaluate how planning tools for accounting respond appropriately to solving financial
problems to lead organisations to sustainable success..............................................................18
CONCLUSION .............................................................................................................................18

REFERENCES..............................................................................................................................19

INTRODUCTION
Management Accounting is the process in which records of internal information is to
maintained by finance team of the organisation so it become possible to do effective decision
making. On the basis of these record performance of business is analysed by workforce,
managers etc. It is also helpful for externals such as shareholders, investors, financial institution
that to analyse the actual position of company so that it they can take whether to invest or not in
the respective project and how much risk is involved in it. With the help of these data return on
investment can also be calculated. The organisation that was chosen in this assignment is a
consultancy firm whose name is Pearl Chartered Accountants. It was established in London also
it serve the services related to auditing, taxation, Accounting Standards , corporate laws etc. firm
has client Connect Catering as it deliver quality catering service solutions, specialising in
managing clients on site catering as it deliver delicious food , with exceptional services. The
topics that are included in this project are demonstration of need of management accounting
system (Cheng, M.T., 2012). Application of wide range of management accounting technique,
use of planning tool in context to management accounting is also explain in it. Comparison in
different ways in which company could use management accounting with respond to financial
issues are also discuss in this report.
TASK 1
P.1. Management Accounting and important needs of various types of management accounting
system?
Management accounting is the presentation of accounting information in such a way as to
assist management in the creation of policy as well as day to day operations of an undertaking. It
is a combination of both the activities such as management and accounting. Connect catering use
this method to measure actual performance of the company and to take effective decision making
.
Difference between financial and management accounting:
Financial Accounting Management Accounting
 It is done by finance team of connect  In this organisations performance