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UNIT 5 Management Accounting Report - Unicorn

   

Added on  2020-07-22

21 Pages4934 Words73 Views
UNIT 5 ManagementAccounting

TABLE OF CONTENTS

INTRODUCTIONTo have the favourable internal strength in terms of business operations as well aseconomic condition management of all commercial transaction is necessary. Hence, with thehelp of various accounting techniques business will be beneficial in having the better monitoringand control over the usage of such financial tasks. In the present assessment there will bediscussion based on various costs, budgeting and reporting techniques which helps Unicorn retailstore in analysing business strength and the areas which are needed to be improved. Hence, therewill be calculations based on the various costing techniques such as marginal and absorptionwhich are relevant with the calculations for evaluating the income and expenses incurred inproducing the units. Further, there will be productive suggestions facilitated to the managers inthe business in context of making adequate efforts in the performances such as benchmarking,key performance indicator as well as relevant techniques which helps them in motivatingworkforce in the attaining such goals.TASK 1P1 Evaluation the types of management accounting systems for Unicorn retail store benefitsFrom: Management accounting OfficerUnicorn retail storeTo: GMUnicorn retail storeSubject: Requirements in implicating the various management accounting tools and techniquesIntroduction:Sir,This to inform you that, Unicorn Store is consistently making favourable earning as wellas creating a unique brand image in the present rivalry environment where many giant retailstore businesses are existing. Hence, in terms of enhancing the operational performances of theorganisation there is need to adopt various cost control techniques, improvements in thebudgetary systems as well as enhancing work efficiency of the work force.Thus, in accordancewith various types of managements accounting systems which are needed for supporting thebusiness operations such as:1

Illustration 1: Types and Functions of management accounting system(Source : Drake, Roulstone and Thornock, 2016)§Cost accounting/management: By monitoring the requirements of costs and financesthere is need to monitor the costs requirements in the organisation. Thus, there will be variousfunctional areas which require improvement by the professional in making adequaterequirements of the costs and finance for Unicorn Retail store. Thus, there will be variouscosting techniques such as activity based costing which denotes the expenses incurred whenproducing a unit pf product such as salary, remuneration, rewards, bonus over the employees orlabours as well as purchase of material, dealings with suppliers etc are the main operationalareas which required high pricing or costing.Activity management: This functional area in Unicorn retail store monitors the overallactivities performed by managers or employees in organisation. Hence, there will be variouskinds of operational tasks which need regular monitoring such as production and purchase of2

goods and services. However, with the help of regular execution managers can monitor theworkforce as well as motivate them to make efforts in giving the quality performances. Thus,with the help of these kinds of assessment the supervisor can monitor the usage of resources inproducing output as well as they can make decisions to lower down the wastage.Investment management: In order to manage the obtained funds from owner's equityand the shareholders' investment the responsibility,Unicorn retail store can utilise such funds inan adequate manner as well as consider the real outputs they have due to such investments(Agrawal and Cooper, 2017). On the other side, if the firm is making investments in newoperational activities as well as planning to make expansion than they must monitor the actualrequirements of such funds.Internal Audit:Regularly monitoring the business transaction on the basis of periodicalaudit which must be organised twice or thrice in a year will help Unicorn Store to make thebetter analysis over the revenue and expenditures of them. Hence, there may be requirements ofvarious managers, auditors and accounting professionals in performing such tasks (Campbell,and et.al. 2014). It could be said such techniques will help professionals in making adequatedecisions to carry-on any task or stop investing in non profitable business operations.Financial accounting:Management accounting is the part of financial accountingsystems. Hence, it can be said that if the internal power of an organisation is better and strongthan the firm be able to meet the external requirements (Henderson and et.al., 2017). Hence,with the help of management accounting tools there will be increase in performance andefficiency of firm as well as it will help in improving the productivity of business andmotivating workforce to make the valuable efforts in the context with attaining the objectives.Taxation:There has been various operational activities that took place during the yearsuch revenue gathering and spending. Hence, this is the responsibilities of the organisation infiling the regular tax returns as well as keep up to date with the changing policies andprocedures in such activities (Collier, 2015). Thus, for Unicorn store there will be dealingsrelated with various products and service and in context with that they all have different taxrates which are legislated by local or central government in UK. Hence, it will be necessary forthe accounting managers to make analysis of all the tax charges has been paid by them as well3

as monitor such transactions.Moreover, there has been use of various management accounting techniques such as:Job costing: This method enables professionals at Unicorn retail store in order to makerecords of all the transactions. Moreover, it ascertains the costs incurred in each businessactivities mainly production costs such as labour, material and overheads. On the there side, therecords of such transactions will be helpful in analysing funds requirements. Inventory management: These are the records of all the inventory transactions whichwere based on level or demand in market as well as production made by the firm. Thus, unicornretail store needed to have records of all the products which were imported and exported fromthe store. The data sheet must consists of time, date, quantity, product type and prices over it.Thus, such records enable the managerial professionals in advanced decision making.Price Optimisation: This is the most fruitful technique as it ascertains the consumerreaction over the different prices at various locations. Moreover, such method is based onobservation over the buyers reaction and demonstrating the profitable rates over products. Thus,to set the prices on goods Unicorn Retailers will be assistive in terms of implicating suchtechniques.P2 Analysing method of management accounting reporting for Unicorn retail storeFrom: Management accounting OfficerUnicorn retail storeTo: GMUnicorn retail storeSubject: Requirements of implementing various reporting systemsIntroduction:Sir,In consideration with the various functional performances of the Unicorn Store it can besaid that there are requirements of having regular reporting from all the departments in businesswhich in turn helpful for business in utilising the effective efforts in business operations such as:4

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