logo

UNIT 5 Management Accounting Assignment (Doc)

   

Added on  2020-10-04

20 Pages5226 Words174 Views
UNIT 5MANAGEMENTACCOUNTINGTable of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Explanation of management accounting and different types of management accountingsystems with examples................................................................................................................1P2 Different methods of management reporting (800)...............................................................4TASK 2............................................................................................................................................4P3 Calculation of income statement through marginal and absorption costing and differencebetween the two...........................................................................................................................4TASK 3............................................................................................................................................6P4 Different types of planning tools which are used in budgetary control.................................6P5 Use of management accounting systems to cope up with financial problems.......................8

CONCLUSION................................................................................................................................9

Index of TablesTable 1: Income statement through marginal costing method.........................................................4Table 2: Income statement through Absorption costing..................................................................4

To The General ManagerINTRODUCTIONManagement accounting helps in analysing the financial statements so that effectivedecisions can be made by the management for company's growth. The main financial statementsanalysed, or management accounting decisions are, statement of profit and loss, statement offinancial position and statement of cash flow. Ades group is a small sized retail companyfunctioning in United Kingdom which is involved in providing groceries and other consumergoods to its customers. The report makes a comprehensive analysis on different managementaccounting systems that can be used by the company for effective function which can furtherlead to developing financial problem-solving technique. It further focusses on different planningtools that can be used by Ades. The report will make effective discussion on adaptation ofmanagement accounting system in response to varied financial problems that can arise in thebusiness. In the end, a brief discussion on different methods of management accounting reportingwill be discussed in the report in context to Ades group.TASK 1P1 Explanation of management accounting and different types of management accountingsystems with examplesManagement accounting is a process allocating financial information and dataappropriately in order to advice company about its performance and growth and development ismanagement accounting. It helps in analysing short term accurate statically and financialinformation required by business to make effective short-term decisions. It is used by themanagers as it helps in establishing control over performance decisions which can influenceorganisational performance (Management Accounting, 2017). Ades foods can use this approachas it will help in better decision-making process. There are three basic reports that are used bythe management which are also known as financial statements of the company. They arestatement for profit and loss, statement of financial position and statement for cash flow.Management accounting system is an effective technique that is used to provide financialinformation to the top-level management so that it can help in better decision making. It acts as aresource to prepare budget and plan further implementing it and finding out discrepancies in it.1

End of preview

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

Related Documents
Types of Management System : Report
|22
|5518
|228

Management Accounting in R.L. Maynard : Report
|22
|5316
|195

Types of Management Accounting System : Report
|16
|4839
|117

Management Accounting Assignment - United Parcel Service Organisation
|17
|4618
|34

Types of Management Accounting with Benefits and Limitations : Report
|25
|6101
|168

Management Accounting Systems & Techniques
|20
|5703
|222