Management Accounting Systems and Reporting
Added on 2021-02-21
18 Pages3694 Words436 Views
Unit 5 Management Accounting
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1. Management accounting system and essential for various kind of accounting system.........3P2. Different method of management accounting reporting........................................................5M1 Benefits of management accounting systems........................................................................6D1 Management accounting systems and reporting are integrated with the organisationalprocess..........................................................................................................................................7TASK 2............................................................................................................................................7P3. Preparation of income statements with the use of appropriate techniques............................7M2 Management accounting techniques and financial reporting..............................................11D2. Interpretation of prepared financial statements...................................................................11TASK 3..........................................................................................................................................12P4 Advantages and disadvantages of various kind of planning tools of budgetary control......12M3 Use of different planning tools and their application for preparing the budgets. ...............14TASK 4..........................................................................................................................................14P5 Comparison of entity due to adapting management accounting systems to respond tofinancial problems......................................................................................................................14Comparison between Alpha Financial and Brightstar...............................................................15M4 Responding to financial problems, management accounting can lead organisations tosustainable success.....................................................................................................................16D3 Evaluate planning tools for accounting period to respond financial problems appropriately....................................................................................................................................................16CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................17
INTRODUCTIONManagement accounting is also known by the managerial accounting. This is so becauseit is a kind of accounting system which is related to providing necessary information to themanagers of company so that they can manage their activities and operations in an effective way.So basically, this accounting discipline is worth-full for internal stakeholders not for theexternal. Herein, the project report various types of accounting system and accounting reports arementioned (Abdelmoneim Mohamed and Jones, 2014). Apart from it, different method ofcosting are discussed to produce the income statements on given data as well as advantages anddisadvantages of planning tools are also included in project report. Along with use ofmanagement accounting in overcoming the financial issues is also mentioned. To understand indetail sense Brighstar financial limited company is selected. The company provides financialconsultancy services to multi-pal companies and their headquarters is at Essex UK. In the reportcompany's client company KEF manufacturing company is selected. TASK 1P1. Management accounting system and essential for various kind of accounting systemThe management accounting system can be defined as a process of collecting, analysingand presenting the quantitative and qualitative information to the users for the purpose of makingdecisions about the best sourcing and use of funds in any business. Though this accountingsystem is not mandatory to implement for the organisations, but it is becoming essential part ofthe companies. There is various kind of accounting system which have their own importance.The Bright-star financial limited company use various kind of accounting systems that arementioned below:Inventory management system- This is a type of accounting system which is associatedwith the better management of the stock. Due to stock management system companiescan analyse the need of raw material as well as can take decision about the production.As well as it informs about the availability of raw material in the stock. Eventually, it isessential for having detailed proper record of inventories. Like the Bright star financialcompany can suggest to their client KEF manufacturing company to manage their stock.
Cost accounting system- It is a kind of accounting system that enables effective costmanagement in the organisations. As well as due to this accounting system, companiescan compute the cost of various activities separately. Basically, this accounting system isessential for the companies in reducing and controlling the cost of different activities andoperations (Bagautdinova, Kundakchyan and Malakhov, 2013). The Bright-star financiallimited company can guide their client company to use this system so that theirexpenditures can be managed. Price optimisation system- The price optimisation system is a part of managementaccounting system which is related to the fixing the prices of products and services at aneffective level. As well as on the basis of this accounting system, organisations canunderstand the behaviour of their customer on different pricing level. So it is essential forthe assigning the right price of products and services. Herein, the aspect of Bright-starfinancial company, they give advice to the KEF manufacturing company to determine theprice of their manufacturing products. Job costing system- The job costing system is a type of accounting system that evaluatethe cost or expenditures of revenue which occurs due to any specific job. So basically, itis an accounting system which gives broad information regarding to the cost which isrelated to any specific job. In other words, this accounting system is essential for thecomputing the cost which is assigned to various jobs. This costing system includesfollowing information’s which are mentioned below:Direct material cost- It is a kind of cost which can be traced with the unit of production. This costis being involved in the job costing system.Direct labour cost- This cost is related to the labour involved in the manufacturing of productsand services. As well as this information is provided by the job costing system.So the job costing system has valuable information regarding to the different kind of cost. Due tothis companies can aware about their overall expenditure related to each job assigned to differentactivities. In Bright-star financial limited company, they suggest their client KEF manufacturingcompany which can help in computing the cost of job.
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Management Accounting, Systems and Techniques: Assignmentlg...
|18
|5381
|40
Evaluation of Management Accounting Systemslg...
|19
|5878
|99
Management Accounting and its Typeslg...
|21
|5617
|25
Management Accounting INTRODUCTION 4 P2 Different Methods for Management Accounting Reporting In Advance Construction Group Ltd12 TASK 414 P5 Cost and Absorption Techniqueslg...
|18
|5947
|216
Management Accounting INTRODUCTION 1: Essential Needs of Different Kinds of Management Accounting Systemslg...
|15
|4226
|170
Management Accounting and Techniques for Cost Analysislg...
|21
|5194
|48