logo

UNIT 5 Management Accounting Systems Sample Assignment

   

Added on  2021-02-20

20 Pages5248 Words32 Views
UNIT 5 - MANAGEMENTACCOUNTING

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................2LO1..................................................................................................................................................2P1 Management accounting and the essential requirements of different types of managementaccounting systems......................................................................................................................2P2 different methods used for management accounting reporting..............................................5LO 2.................................................................................................................................................7P3 preparation of income statements by using marginal cost and absorption cost......................7LO 3...............................................................................................................................................11P4 advantages and limitation of planning tools which are used for the budgetary control.......11LO4................................................................................................................................................15P5 Compare ways in which organisations are adapting management accounting systems torespond to financial problems. ..................................................................................................15CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................181

INTRODUCTIONThe process of Management accounting is providing an aid to internal management of anorganization in order to analyse the various financial statement to undertake necessary strategicdecisions for sustainability and growth of business (Peterson, Schmar - debeck, and Wilks,2015). The management accounting is an effective process for presenting and analysing financialinformation to the managers on interval for decision-making strategically. Super toughened glasswill be chosen for this report. The super toughened glass company is the best among theconstruction industry, fire resistant, supply of shatter-proof and self-cleaning glass for thebuilding projects in UK. This company is a family firm and employs staff of 145 employeesworking for their company. The report will lay emphasis on management accounting and the essential requirementsof different types of system of management accounting. The report will also cover differentmethod for the management accounting. Along with it, the report will calculate the cost ofappropriate technique in order to analyse the cost and also income statement will be prepared forfurther analysis of the company. The report will highlight the different types of planning toolsand their advantages and disadvantages for budgetary control. This report will lay study for abrief comparison of organization for adapting management accounting system for responding infinancial problems.LO1P1 Management accounting and the essential requirements of different types of managementaccounting systemsManagement accountingThe management accounting is a process which provide aid to internal management oforganization in order to analyse financial statement for necessary decision-making for a longperiod of sustainability in business (Abdel - Maksoud, Cheffi, and Ghoudi, 2016). This conceptof management accounting includes the planning in effective manner and to select the bestalternative action of an organization. Also, the control is executed by interpretation andperformance evaluation.Financial accountingThe financial accounting is a specialized branch of accounting which tracks financialtransaction of a business (Davila, Foster, and Jia, 2015). The transactions in financial accounting2

at first record in Journals then summarize in Ledger accounts and lastly presented in financialstatements that is income statement and balance sheet.Basis MANAGEMENTACCOUNTINGFINANCIAL ACCOUNTINGLegal requirementReports under this accountingis used within an organization.It is prepared for the use ofinternal activities of a business(Richins, Stapleton, and Stratopoulos - Wong, 2017). Theydid not need any legalrequirement.This accounting type followsrules which is prescribed underGeneral accepted accountingprinciples (GAAP) andInternationalfinancialreporting Standards (IFRS).The legal requirements arethere for company such asSuper toughened glass need tofollow all these requirementsfor their smooth functioning.Area of coverage within anorganisationThe management accounting iswholly concerned with specificarea for the analysis. This areavary from product line,manufacturingunit,geographical boundaries, etc.Financial accounting is onlyconcerned with the business.The accounting standardsbounds an organization such asSuper toughened glass toreport in an area by pre-setformat.Format of presentationThere is no presentationformat of managementaccounting is available(Banker, Byzalov - Fang andLiang, 2017). Company canchoose any format accordingto their preference and choice. On the other hand, thefinancial accounting follows aspecific format under whichthe company need to recordand present all the information.Type of data usedThe management accountinguses both data that isWhile, financial accounting asthe name suggest uses only3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
(Doc) Management Accounting Assignment - Solved
|19
|5458
|483

Management accounting : Oshodi PLC
|20
|4859
|21

Management Accounting - Excite Entertainment Ltd
|18
|4921
|480

Unit 5 Management Accounting System
|23
|6332
|38

Management Accounting: Techniques, Systems, and Reports
|17
|4325
|395

Management Accounting - Avon Rubber Plc Assignment
|23
|5084
|51