Unit 5 – Management Accounting L-4 - Assignment

Unit 5 – Management
Accounting L-4

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1 ............................................................................................................................................1
P1. Accounting system and its important requirement of various kind of accounting system1
P2 various method use for managing accounting report........................................................2
M1. Advantages of accounting system and its application....................................................3
D1 Evaluation of accounting method in company process....................................................5
TASK 2............................................................................................................................................5
P3.Formulate the budget of income statement different techniques......................................5
M2 Wide range in accounting system techniques and make financial report for the
organisation............................................................................................................................7
D2.Interpretation of income statements: ...............................................................................7
TASK 3............................................................................................................................................7
P4 Designing tools for budgetary control...............................................................................7
M3 The importance of different planning tools and their method for generating budgets. .10
D3 Various kind of planning tools for accounting to solve the issues.................................10
TASK 4..........................................................................................................................................10
P5. Accounting system to act upon problem of organisation..........................................10
M4 Take use of accounting system in identifying the hurdles and techniques to solve the issue
of organisation......................................................................................................................12
CONCLUSION ...........................................................................................................................13
REFRENCES ................................................................................................................................15

INTRODUCTION
Management accounting system is a process in which managers take effective decision so
that organisation can make effective judgements. MAS acts as a supporting pillar in financial
information but also help in managing information by implementation of different techniques
which enhances efficiency of business (Guo, 2019). For getting better insight of management
accounting system, Oshodi is taken in to account which deals in JOJO fruits for all age group.
This report covers management accounting definition and various kind of management
accounting system. Project also explain the different techniques such as marginal and absorption
costing to prepare the income statements for organisation. Numerous kinds of planning and tools
along with their pros ans cons that are helpful in making budgetary control also described in in
this report.
TASK1
P1. Accounting system and its important requirement of various kind of accounting system
Management accounting emphasis on both monetary system as well non monetary
system aspects of an company, it may be characterised as a demonstration of accounting
information in order to aid the organisation maintaining the different kinds of policies and
evaluating difference business operation. Management accounting assist the company in
performing all its activities such as managing, directing, and other operational activities going
during the production process. Management accounting can be also known as framework which
support the company in operating their business process in well defined manner and also keep
the track of resources. There are different kinds of management accounting system which are
discussed below in brief.
Cost accounting system: This in known as structure which help in company such as
Oshodi plc in maintaining the cost of the unit for analysing the net profit which include
production cost. Further it name as product costing system or cost management system. There
are two major elements which are job order costing and process costing. The main advantages of
cost accounting system is organisation can identify the right price of its product and their
respective services
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