Management Accounting System and Techniques for Cost Analysis

Unit 5 Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1 ...........................................................................................................................................4
P1 Management accounting system and their essential requirement..........................................4
P2 Type of management accounting reports and its importance to management.......................7
M1 Various type of system and their benefits ...........................................................................8
TASK 2............................................................................................................................................9
P3 Cost analysis techniques to prepare income statement to calculate cost...............................9
M2 Range of management accounting techniques....................................................................14
P4 Advantage and disadvantage of various types of planning tool..........................................14
M3 Evaluation of planning tool for preparing budgets.............................................................15
P5 Adaption of management according to respond financial problem.....................................16
CONCLUSION .............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Management accounting known as managerial accounting system that aid organisation to
operate their business operations. Management accounts are of different types which is essential
for managers to undertake as to formulate decisions in best effective manner. With the help of
accounting system managers can make internal decision-making process related to financial and
non-financial aspects in best effective manner. Management accounting system benefits
organisation to take advantage of different tools, techniques and methods and conduct operations
of company in best effective manner. As to effectively understand concept and practices of
management accounting Essentra Packaging is used in present report. In this project formative
discussion has been made on management accounting concepts. Further report include
managerial techniques along with disadvantages and advantages of planning tool.
TASK 1
P1 Management accounting system and their essential requirement
Management accounting: It is a systematic process that include different types of
activities such as presentation, analysation and collection of non-monetary and monetary terms.
By undertaking management accounting organisation can effectively able to take numerous
advantages through which their can further able to accomplish their daily basis operations related
to planning, organizing, staffing, decision-making and controlling in best effective manner. Thus,
it is essential for Essentra Packaging to understand importance of management accounting in
order to conduct their daily basis operations. This will significantly aid them to accomplish their
short as well as long term objectives in best effective manner.
Reliability:
It is essential for an organisation to have all the essential and related data as well as
information in reliable manner. This will further aid company to undertake best effective form
decision-making process in order to improve future performance of organisation.
Up to date:
It is the basis responsibility to company managers to make sure that informations that are
covered in accounting statements are accurate and up-to-date. With the help of best effective
form of accounting system organisation can effectively able to maintain financial records as to
operate their business functioning in best effective manner while assuring market stability.
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