Management Accounting Systems and Reporting Methods for Connect Catering Services

Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Necessary requirements of various types of management accounting systems ...................1
M1. Evaluation of benefits related to management accounting systems with their application in
context to organisation.................................................................................................................2
D1. Critical evaluation regarding how management accounting systems along with
management accounting reporting are incorporated in process of company..............................3
TASK 2...........................................................................................................................................4
P2. Management accounting reporting methods..........................................................................4
TASK 3............................................................................................................................................5
P3. Calculation of costs................................................................................................................5
..........................................................................................................................................................8
..........................................................................................................................................................8
..........................................................................................................................................................9
M2. Implementation of various types of techniques of management accounting accurately and
producing correct financial reporting documents......................................................................10
D2. Interpretation data for a range of business activities and application of accurate financial
reports........................................................................................................................................11
P4. Explanation of advantages and disadvantages for various types of tools of planning that
are utilised for budgetary control...............................................................................................11
M3. Examine the utilisation of various planning tools and their application in preparing and
forecasting of budgets:...............................................................................................................12
TASK 4..........................................................................................................................................13
P5. Comparison of two organisation .........................................................................................13
M4 Analysing how management accounting systems leads to sustainable success of an
organization in response to financial problems:........................................................................14
D3. Evaluating the response of planning tools in solving financial problems for sustainable
success of an organization:........................................................................................................15
CONCLUSION..............................................................................................................................15

REFERENCES..............................................................................................................................16
APPENDICES...............................................................................................................................17

INTRODUCTION
Management accounting are techniques that assist businesses to control, plan, evaluate
and improve their performances (Dalla Via, Perego and Van Rinsum, 2019). It deliver different
paths to managers so that they can manage finances within their entity to achieve their goals and
work on their fouls. Internal controllers form these practices and implement them to enhance the
working of company. For this report we have consider Connect Catering Services which is a
growing company of UK. They run family owed business and run catering service. Now they are
planning to expand their business by selling home made pizzas to superstores for this they should
consider different management accounting systems.
This report emphasis on all necessary requirement of various types of system of
management accounting, methods that are require for reporting of management accounting,
merits and demerits of various plaining tools. Moreover, it also includes cost calculation by the
use of proper techniques of cost analysis for the preparation of income statement with marginal
and absorption cost. Controlling tools of budgeting, their advantages and disadvantages are also
mention in this report.
TASK 1
P1. Necessary requirements of various types of management accounting systems
The concept of management accounting is said to be determine financial information of
the firms and help them to take decisions according to situations. In an organisation, it is a
procedure to identify the certain aspects like measuring, interpreting, implementing, analysing
and communicate with managers within the organization. It is all about making of internal
decision that are used for internal function.
System of Management Accounting
Cost Accounting Systems: This system is said to be that a entity calculate the costs of
their products for profitability analysis and cost activity (Bar-Yosef, D’Augusta and Prencipe,
2019). It aims to getting a entity's total cost of production to measure the variable costs as well as
fixed costs. There are two types of cost accounting such as job order costing and process costing.
In connect catering services, it helps to make a decision making and modify the cost efficiency.
Calculation of cost is very essential for organization because it gives the accurate cost of entity
while determine profits.
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Price Optimising System: The concept of this system is to understand the firms
strategies like how much company acquire their profitability levels when they change their prices
for existing customers (Cai, Li and Tang, 2020). It can decide the prices of many other products
at a particular time, price optimisation is very essential requirement for entity because it
determine overall price at different levels which is decisive to profitability. With context of
Connect Catering Services, before deciding the products of firm it consider several factors such
as product life cycle, rivals strategies and goals of the entity. It will determining initial pricing in
this firms work but for stable base of products, promotional pricing means when new product are
launched in the market their promotions is there, many competitors set their prices at a low cost.
Job Costing System: This system is used to ascertain the special cost to a specific job
and that costs are performed by the customers evaluation (Dewua and Barghatht, 2019). With
relevance of job costing, basically, they assign their cost to each and every individual so that they
find out the profit and loss of a entity on each and every job. According to the Connect Catering
Services, it is helpful to check the firm's quality in which should be capable to allow sensible
profit. They compare actual costs with the help of handle and controlling costs. To helps in
identifying the unsuccessful jobs and various essential involvement in context of connect
catering services are wind-up of job, production process is listed, whether order is received or
not etc.
Inventory Management System: The concept of this system is a tool that determine the
tracking of goods from one place to another place (Hýblová ,2019).. It is a collection of software
to maintain product and procedures of firm whether it is a raw materials, finished goods, assets
of the company are willing to send their seller and consumers. With context of Connect Catering
Services, this type of system is very efficient and effectively to be achieved within the structure.
Most of the entities are to decrease their product and overstocking of inventories. It helps the
firm in early management and cost command of the entity. Managing of inventory consists of
various benefits which includes reduction of cost, suitable stock is achieved in this.
M1. Evaluation of benefits related to management accounting systems with their application in
context to organisation
Application and benefits of certain systems of management accounting inside Connect
Catering Services are as underneath:
System Benefits and application
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Cost-accounting  This system will benefits Connect Catering
Services to see show cost they have generated from
pizza making operations and how much will it take
them to transport them to superstores.
 Application of cost accounting system in Connect
Catering Services will help to know how much
expenses they should do in relation to earn profit
and if they are increased how they should control
them.
Job-costing  In Connect Catering Services, job costing system
will provide then knowledge about cost of each job
and path about what should be done.
 Within the enterprise, application of job costing
system will help them to cut their extra expenses.
Inventory management  Connect Catering Services experiences benefits
with inventory system as they can save time and
they can also check their stock level.
 Application of inventory management system help
to keep an eye on inventory to fit customers
demand.
Price-optimising system  Price optimising system benefits Connect Catering
Services to determine market trends and customers
taste.
 Application of this system in business venture will
provide information about customers willingness
and their reaction to different cost.
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