Use of management accounting techniques in organisational processes
Added on -2020-07-22
It is that which will be done with the help of management accounting (Fullerton, Kennedy and Widener, 2013). It is that which will be done with the help of management accounting (Fullerton, Kennedy and Widener, 2013). In this, various systems are present and they are described in detail as below: • Cost accounting systems: With the help of this system, it will be made possible to ascertain the total cost which has been incurred in the process of production. • Standard costing:
| 18 pages| 2987 words| 48 views
Trusted by 2+ million users,
1000+ happy students everyday
Showing pages 1 to 4 of 18 pages
Management Accounting
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3SECTION 1......................................................................................................................................3P1. Use of management accounting systems..........................................................................3P2. Methods used for management accounting reporting......................................................6M1. Benefits of management accounting systems.................................................................7D1. Way in which reporting and systems of management accounting are integrated withinorganisational processes.........................................................................................................7P3. Use of marginal and absorption costing to prepare an income statement........................7M2. Financial reporting and use of management accounting techniques..............................9D2. Data for complex business activities...............................................................................9SECTION 2....................................................................................................................................10P4. Various tools of planning for budgetary control and their advantages and disadvantages10M3. Application of planning tools........................................................................................13D3. Solving of problems by using planning tools................................................................14P5. Using management accounting systems to deal with financial problems......................14M4. Response to problems...................................................................................................15CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................17
INTRODUCTIONIn any organisation, there are various reports which are required to be prepared bymanagers as with the help of them, important decisions will be taken in business. For this, therewill be requirement of relevant data which will be collected with the help of significant toolswhich are covered under management accounting (Granlund, 2011). By using all the planningtools, financial problems in business will be resolved. All these aspects will be discussed in thisreport in relation to 4com. Also, different systems which are used in the process of managementaccounting will be included here.SECTION 1P1. Use of management accounting systemsIn order to gather the information for internal use, there will be various reports which willbe prepared. Complete information collected will be identified, analysed and recorded with thehelp of management accounting (Fullerton, Kennedy and Widener, 2013). In order to increasethe productivity, it will be required that efficient utilisation of resources shall be carried out andby the same, company will be able to earn more profits. In this, various systems are present andthey are described in detail as below:Cost accounting systems: With the help of this system, it will be made possible toascertain the total cost which has been incurred in the process of production. By theidentification of this, all of the cost will be controlled and for that evaluation will be done
of the material and other expenses. The main parts in which this system is divided areprocess and job order costing. Standard costing: It refer a techniques which are used to compare standard cost of eachproduct with actual cost in order to find out the efficiency of the operations.Types of standard costing: Ideal standards: Cost fixed those are based on ideal conditions. It is representative for long termgoals with maximum efficiency.Attainable standards: It is related with company condition that what can be attained throughthe present conditions.Current standards: These are short term in nature and mostly used for control purpose. It ismostly related with that state which business is presently working or tying to achieve.Advantages:Standards are set in order to provided standard against which actual costs are related toascertain actual performance.It help to analyse variances that are assist to an individual out inefficiency and relocatedthose persons those are accountable for adverse variances. Disadvantage:In case of small concern it can not be applicable because it require high degree of skills.Types of variances: Direct material variance: It is the relation among actual cost of material at actual unitsand standard cost of material of standard units. It is sum of material price and materialquantity. Labour variance: It is related with the cost of labour. It is differences among standardcosting of labour for the actual human action and the actual cost incurred on labour.Overhead variances: It is related with all indirect cost. Sales variance: It is the type of sales product which are related with actual sales andstandard.Actual costing: It is said to be recording of product cost those are based on factors likematerial, labour and overhead during reporting period.
Found this document preview useful?
You are reading a preview
Upload your documents to download
or
Become a Desklib member to get accesss
Paid Plans
Free Plan
Single Unlock
Monthly Plan
Yearly Plan