UNIT 5 Management Accounting Report - Marks and Spencer

UNIT 5
MANAGEMENT
ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P.1 Administration account and different kind of administration accountancy.....................3
P.2 Different method to use management accounting............................................................5
TASK 2............................................................................................................................................7
P.3 Calculate cost analyses and prepare income statement ...................................................7
M.2 Managing accounting techniques .................................................................................11
D.2 Produce financial report.................................................................................................11
TASK 3..........................................................................................................................................11
P.4 Advantage and disadvantage of planing tools for budgetary control.............................11
P.5 Adopt management accounting techniques....................................................................16
CONCLUSION .............................................................................................................................18
REFERENCES ...............................................................................................................................1

INTRODUCTION
Finance is the most crucial part in an organisation. The enclose report deal with,
management accounting is assistance to gain the level of execution and increase adaptivity in
work place. Administration accounting is help to interior department in system. In this way,
existing report is deal with Marks and Spencer (M&S) (P. Tucker and D. Lowe, 2014). This is
basically placed in United Kingdom and supply assorted kinds of work in retail sector. With this
respect report assist to focus on management accounting and function to used in work place. In
this report, focus is on budging control and allocation of budget at workplace.
TASK 1
To: General Manager
Marks and Spencer company
From: Management Accounting Officer
Subject: Writing a report to General Manager of Marks and Spencer company
Introduction:

In order to improve the internal efficiency of the organization, the management accounting
techniques and tools are required by it. The administration accounting will help Marks and
Spencer to flourish in its operations.
(P.1) Administration account and different kind of administration accountancy
Management accounting and managerial accounting is one of the most important part in
organisation . In this context, finance department is to be focal point on management accounting
and role in work place. In management accounting manger used to precondition accounting
information in work place. It is help at the time of judgement and help to future improvement in
organisation (Hall and et.al 2016). It is help to management kind making and increase
performance level. It focus on the devisor planing and performance management system in retail
sector.
Management accounting is help to provide expertise in financial reporting and control to
assists management in work place. It is a process of managing report and account that provide
accurate content on time. This type of information is to be required by manager to carry out day
to day operations at workplace. Management accounting is very important for external
stakeholder. In organisation is generated monthly financial report for external investor, with the
help of this report all external factor can examine system position in market (Soderstrom, K.M
and et.al 2017). In this report is been infused in cash, revenue, capital, assets and liability etc.
management accounting is help to internal or external factor to gain execution level and
maintained the growth rate in market. In such a way management accounting system is help to
addition internal as well as external factor. Management accounting system are as follows :-
 Cost accounting system:
In management accounting is most important to increase the performance level and help
external source. This cost accounting system is also called product costing system and costing
system. It helps in calculation cost for product for profitability analyses, inventory valuation and
cost control. All these factors are very important to analyse the final cost and outcome. With the
help of cost factor, organisation is focus on costly environment. In cost accounting system that
business enterprise cost individually form each process in work place (Soderstrom and et.al
2017). It is help to idea the cost flow and control the management in preparation. In cost

accounting is to be focus on job order cost accounting and procedure costing, cost allocation and
activeness based costing all are the liniments. All such costing is help to increase the execution
level and maintained growth rate in marketplace.
 Inventory management system:
In inventory management is represented business stock goods and material as much. In
administration term stock and inventory are to be used interchanged. With the help of inventory
management system is work with the help of two most crucial factors is incoming and outgoing.
The main goal of inventory is level automatically minimize in the case of inside and outside
situation. In inventory administration system is focus on create buy order, created sale order and
physical inventory count etc (Sudaryanti, and et.al 2015). with the help of improve inventory is
focus on improve company bottom line and company work flow is most important in such
condition. To mange it properly is the biggest challenge in organisation. Inventory management
techniques is focus on effectively monitoring the flow of product in retail shops and food store. It
is key drive of the process and increase the performance management in work force.
 Job costing system:
In job costing system is to be focus on accumulating information about the cost is been
used in production and service job. This information is very important to increase growth rate. In
this, cost information is submitted to customer under a contract at workplace (Sudaryanti, and
et.al 2015). In job costing system is need to focus on direct cost, direct marital cost, direct labour
cost and overhead cost. Some customer is only focus on certain types of cost in work place.
Costing system is help at the time of requirement of the system.
Every much kind of different types of direction accounting and assist to alteration the level of
carrying into action. Administration accounting is most crucial to indefinite quantity the plane of
execution and preserved the growing rate in activity. With the help of cost accounting is most
important to increase internal or external execution. In cost accounting is focus on estimation of
cost in work place and help to increase shareholder in market (Solovida, and et.al 2017). All
such types of social control accounting is help to provide direction in work place, so it is also
called direction accounting. Financial statement is most important factor to increase performance
level in industry and help all shareholder to estimate growth rate.

(P.2) Different method to use management accounting
In management accounting is help to increase the level of performance in market. In such
a way, different types of tool and techniques is help to proper analyse of accounting is work
place. Management accounting is a process of identify, analyses, managing financial information
so internal management can use it for future planing and decision making. Planing and budgeting
is most important factor in retail sector. In such a way, tool and techniques is to be used in
organisation are as follows :-
 Financial planing :
The main objective of business is any business structure is operation in profits. This
verifiable is achieved by fashioning proper or good fiscal preparation. Hence, financial
preparation is considered as best tool for achieving business objectives (Solovida, and et.al
2017). With the help of planing future decision is to be improved in work place. Planing is most
important factor because it is help to control future acclivity. In organisation financial planing is
help to mange internal resources and external resource in work place.
 Financial statement analyses :
In financial statement analyses is focus on profit and loss account and balance sheet.
This type of statement are perpetrated on different time period and help to management activity.
It is help to change the growth rate in management with the help of commercial enterprise
statement (Solovida, and et.al 2017). This is done with the help of comparative and common
size balance sheet. Financial statement is most important factor to increase performance level in
industry and help all shareholder to estimate growth rate.
 Fund flow analyse :
In fund flow analyses discovery out the happening of fund form one period to other in
work place. This type of analyse is most important, it is help to analyses fund is properly used or
not in a year as compare to previous year. In such a way the working capital is to be changed in
organisation and fund form operation is also most important factor (Kotas, and et.al , 2014). In
fund flow statemented is help to analyses cash inflow and cash out flow both factor. Fund flow is
basically measured in monthly or quarterly, on the basis of performance of assets. Fund flow
statement is focus on sources and application of fund investment in work place.
 Cash flow statement :