Management Accounting: Meaning, Importance, and Tools

Management Accounting

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1 Explanation of meaning of management accounting and importance of different types of
management accounting system..................................................................................................1
P2 Explanation of different types of management accounting reporting system........................1
TASK2.............................................................................................................................................1
P3Income statement using marginal and absorption costing.......................................................1
TASK3.............................................................................................................................................1
P4 Explanation of advantages and disadvantages of different types of planning tools used
for budgetary control...................................................................................................................1
TASK4.............................................................................................................................................1
P5 Uses of management accounting system to solve financial problem.....................................1
CONCLUSION................................................................................................................................1
REFRENCES...................................................................................................................................1

 INTRODUCTION
Management accounting is a technique used by business organizations for better utilization
of accounting information. In other words it is used by manger to take effective decision for
achieving business organizations objective. To understand the concept of management
accounting in a better way GSQ limited has been taken, it is situated in United Kingdom. In
this report meaning of managerial accounting, and uses of management accounting system
in order to maintain sustainability in organization. This report also explain uses of
managerial accounting techniques , planning tools to control budget and how management
accounting tool s help in solve financial problems.
TASK1
P1 Explanation of meaning of management accounting and importance of different types of
management accounting system.
Definition of man
Management accounting: Management is an art of planning, organizing, coordinating,
directing and controlling business activites in a way which help in built strong position in
market. On the other side accounting is systematic procedure of recording, analysing,
collecting and submitting and communicating accounting data as information to mangers.
Management accounting the word is combination of management accounting, which
describe as uses of accounting information in managerial way to take effective decision for
attain future objective of business entity. In other words, management accounting is
(Carlsson-Wall, Kraus, and Lind, 2015).
branch of accounts which uses to analysis operational cost of business activites and
formulate financial reports in order to help mangers for their decision making procedure.
GSQ limited can be used different types of managerial accounting system to improve their
business performance, following are various types of management accounting system:
COST ACCOUNITNG SYSYEM: It is a framework which is used by business
organizations to identified cost of manufacturing products. Managers uses various
costing methods in order to analysis their cost, they uses standard costing, marginal
costing, job, costing, bench costing for calculation of cost rate. Manager of GSQ
limited use this cost accounting system in order to increase their profitability rate, it
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