Management Accounting Systems and Reports

Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Management accounting systems..........................................................................................1
P2: Management accounting reports............................................................................................3
TASK 2............................................................................................................................................4
P3: Calculation of costs using appropriate techniques................................................................4
TASK 3............................................................................................................................................6
P4: Advantages and Disadvantages of planning tools.................................................................6
TASK 4............................................................................................................................................8
P5: Comparison of organizations in adaptation of management accounting systems to solve
financial problems........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Management accounting is a process through which timely financial and statistical
information is prepared for the business managers which can help them a lot in taking day-to-day
and short-term decisions (Alamri, 2019). It use can be very useful for the managers to allow
them to analyse and interpret the financial information in an effective manner. Therefore in this
way they can find out problems and issues within the organization and use the right approach for
rectifying them to achieve a higher-level of efficiency and effectiveness. This report is based on
Volpi Ltd. It is a medium-sized business which deals in the manufacturing sector. In this
assignment, focus will be made on understanding of management accounting systems,
application of its techniques. Additionally, specific analysis on explanation of planning tools and
comparison of ways in which organizations make use of it to resolve financial problems will be
discussed as a part of this project.
TASK 1
P1: Management accounting systems
Management accounting- Management accounting is a tool through which decisions are
taken effectively by the management of the organizations (Management Accounting, 2020).
Different types of tools like budgeting, variance analysis, cost-volume-profit analysis and BEP
are used in it. Its use can be made by the management of Volpi Ltd. so that it is able to take the
right decisions in an effective manner.
There are various types of systems which are present under it. These are explained as
follows-
Cost accounting system- It is a system through which there is an estimation of various
types of costs. In an organization, there can be various costs like Fixed Cost, Semi-Variable Cost
and Variable Cost (Askarany, 2016). Thus use of this system is crucial for obtaining the right
information related to the different types of costs in an effective manner. Therefore the managers
of Volpi Ltd. Can make sure that they make use of it to assess the costs effectively and apply
techniques to reduce it.
Essential requirements-
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 It should be able to help the managers in ensuring that they are able to identify and
segregate the different types of costs. In Volpi Ltd. this can be quite useful for the
managers.
 It must be able to ensure that the managers are able to ensure the right apportionment of
the various types of overheads. Therefore, in the context of Volpi Ltd., this can help the
management a lot.
Inventory management system- In it, there is use of various techniques and methods in
order to ensure that the stock level is properly and effectively managed (Botes and Sharma,
2017). In Volpi Ltd., the use of this system is made to track and manage the different items in the
stock level. Thus in this way proper management of inventory can be ensured within the
organization.
Essential requirements-
 It must ensure that the different items in the stock of the organization are managed and
tracked properly. In Volpi Ltd., this can be quite useful for the proper management of the
different types of items.
 In it, there is a use of various techniques so that the overall costs in the company are
effectively reduced. In the context of Volpi Ltd., this can be quite helpful in the reduction
of inventory management costs.
Job costing system- In this system, accounting of various types of job orders is done in
an effective manner (Doktoralina and Apollo, 2019). In the context of Volpi Ltd., the use of this
system is quite essential so that the inwards and outwards movement of job orders is effectively
managed.
Essential requirements-
 It should be able to ensure that the different job orders are managed in an appropriate
manner. Thus, in the context of Volpi Ltd. This will be able to help the managers in
properly estimating and managing them.
 It must help the managers in identification and reduction of job costs. In Volpi Ltd., the
required help can be provided to the managers so that they can reduce the costs and
enhance the level of profits.
Price optimization system- In this system, the management of the organizations uses the
appropriate techniques to determine the prices of different types of products (Endenich and
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