(Solution) Management Accounting Assignment

Management
Accounting

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1.......................................................................................................................................1
P1 Management accounting and essential requirement of different types of management
accounting systems......................................................................................................................1
P2 Different methods used for management accounting reporting.............................................2
M1 Evaluation benefits of different management accounting systems and their application.....3
D1 Critical evaluation of management accounting systems ......................................................4
TASK 2............................................................................................................................................5
P3 Calculating cost per unit under both absorption costing and marginal costing by stating the
difference between both of them. Explaining the way in which the income statements are
being prepared from both of these measures...............................................................................5
TASK 3............................................................................................................................................7
P4 Advantages and disadvantages of different types of planning tools used for budgetary
control.........................................................................................................................................7
A. Calculation of standard cost of PVC sheet.............................................................................8
B. Calculation of material price variance....................................................................................9
M3 Use of different planning tools and their application for preparing and forecasting budgets
in the context of Dell...................................................................................................................9
D3 Way in which the planning tools respond appropriately to solving problems in the context
of Dell, leading to sustainable business development...............................................................10
TASK 4..........................................................................................................................................10
P5 Comparison of Dell with HP to establish the way in which the organisations are adapting
management accounting systems to respond to financial problems such as lack of view of
what deals had been sold from a budgetary perspective...........................................................10
M4 How responding to financial problems, management accounting can lead an organisation
such as Dell to sustainable success...........................................................................................11

CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Management accounting is basically preparing accounts and reports which are essential
for the managers to make decisions on the basis of statistics and financial data . This report
defines management accounting and provides different types of management accounting systems
and its requirement. The report focuses on different methods, benefits of various management
accounting systems and integration with organization processes. In this report shows the uses for
preparing income statements using the marginal and absorption costing, its calculation and
differences. This kind of reports producing financial report. It has also discusses different types
of planning tools that are being used for budgetary control.
TASK 1
P1 Management accounting and essential requirement of different types of management
accounting systems
The management accounting is the process for creating and maintaining financial report
in a particular systematic format for providing accurate and statistical data which is essential for
the organization's manager to create decisions on the daily basis (Bebbington, Unerman and
O'Dwyer, 2014). This management accounting consists of making and supplying statistical and
financial information to the enterprises managers for generating daily basis decisions. Financial
accounting is used by organization’s stakeholders for generating financial reports for the
enterprise and it is different from management accounting. Management accounting reports are
like periodical reports that are mostly used by the company’s owner and managers. Report of
management accounting consists of dell and other firms cash and funds which is available in
company like sales revenues, current position of accounts etc. These all things are calculated on
the requirements of an organization requirements . For maintaining growth of Dell firm it is
important for the businesses to calculating the accounts. Report of management accounting is
different from the financial accounting because financial accounting reports are generated on the
basis of historical information and these reports are used to look forward side of business.
For individuals and businesses, various types of management accounting systems are
available. The decision is taken from the account's data and its accounting systems price and
values for selecting an accounting system in the future . The ability of person for accessing
management accounting system is important for the system. Several types of accounting systems
1