Management Accounting Techniques in Free Agent: A Detailed Report

This report provides a detailed analysis of management accounting principles and their application within the context of Free Agent. It begins by outlining the essential requirements and various types of management accounting, emphasizing their role in financial stability and decision-making. The report then explores different reporting methods, including inventory management, budgetary reports, job cost reports, and accounts receivable aging, highlighting their benefits for internal efficiency and financial control. A key focus is on the benefits of a management accounting system, such as cost management, investment management, and internal auditing, and how these components contribute to effective financial planning and problem-solving. The report also delves into specific costing techniques, comparing marginal and absorption costing through income statements to illustrate their impact on profitability. Furthermore, it covers planning and budgetary control, outlining different types of planning tools and their merits and demerits, along with their implementation in resolving financial obstacles. The report concludes by emphasizing how management accounting systems respond to financial problems and contribute to sustainable success, supported by the use of planning tools and effective decision-making processes within Free Agent.

UNIT 5 MANAGEMENT
ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P.1 Explaining Essential requirements of management accounting and its types..................2
P.2 Methods of management accounting reporting for Free Agent.......................................5
M.1 Defining benefits of management accounting system and application over Free Agent6
D.1 Integration of the management accounting system and reporting for Free Agent..........7
P.3 Calculations for various costing techniques for Free Agent............................................8
M.2 Benefits of the managements accounting techniques in financial reporting.................10
D.2 Financial report to the general manager and providing the necessary information to them
..............................................................................................................................................10
P.4 Type of planning and budgetary control in Free Agent and their merits and demerits..11
M.3 Uses of various planning tools for forecasting the budgets..........................................14
D.3 Implementation of planning tools in resolving obstacles..............................................14
P.5 Explaining management accounting system respond to financial problems..................16
M.4 Resolving financial problems with management accounting helps organisation in
sustainable success...............................................................................................................16
D.4 Sustainable success with the help of planning tools......................................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

Illustration Index
Illustration 1: Management accounting system...............................................................................3
Illustration 2: Reports......................................................................................................................5
Illustration 3: Sales budget example..............................................................................................12
Illustration 4: Cash budget example..............................................................................................13

Index of Tables
Table 1: Income statement of Free Agent as Marginal costing technique.......................................8
Table 2: Income statement of Free Agent on Absorption costing technique...................................9

INTRODUCTION
Financial stability is the requirement in every firm which in turn helps them in having the
adequate business growth and planning. Thus, managerial accounting will help the firm in
achieving the adequate financial strength as well as provide various budgetary techniques such as
cost budgeting, sales budgeting etc. which in turn fruitful for the decision making. Hence, in the
present report there will be discussion bade on Free Agent and its internal efficiency. However,
this report will also highlight various costing techniques such as absorption and marginal costing
calculation which in turn facilitate the favourable profit results to the firm. Hence, it will also
help stakeholders in the organisation to adopt the effective costing techniques which will be
fruitful for enchanting the revenue gathering.
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Introduction: To have the favourable growth in this rivalry environment, thus there is need to
analyse the internal strength of the organisation. Hence, the management accounting is the
techniques which enables the professionals in the firm to make the adequate decisions as well as
can able to generate adequate solutions to the problems (Turner, 2014). Thus, in context with
enhancing the efficiency of business there is need to string the basic operational requirements of
the entity such as budgets, costs and the revenue from them.
P.1 Explaining Essential requirements of management accounting and its types
In accordance with management accounting methods there has been various kinds of
techniques which in turn helpful for Free Agent managers in context with producing the
adequate solutions or innovative ideas to enhance the firm's operational efficiency. Hence, it
will be fruitful for the industry in having the adequate amount of funds for such activities like
purchasing material, managing the company's accounts as well as generating effective solutions
to lower down the expense and the costs of the business (Kerzner, 2013). However, in
accordance with the following diagram we can clearly understand the requirements of the
managements accounting system in organisation as well as the areas of loopholes in firm:
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Illustration 1: Management accounting system
Source: (Mir and Pinnington, 2014)
By considering the above listed diagram which demonstrate the various components of
the management accounting system the organisation can be helpful for the firm in analysing the
actual internal operational ability. Hence, these can be explained as Tax Accounting: In context
with having the effective numbers of stakeholder or investors in the firm as well as the financial
growth in the legal manner that there is need to make payments of the taxes over the annual
turnover (Burke, 2013). Hence, these can be measured and analysed by the professional
accounting officers and the auditors in the firm which in turn give the effective tax solutions as
well as various deductions on some pieces of work can be allotted by HMRC in UK. Thus,
taxes can be levied over the purchase and sale and the transportation of the goods and services
which are variable and have to be paid by Free Agent. Financial Accounting: To have the
favourable disclosure of companies financial position and the operational efficiency that there is
need to measure various financial statements of Free Agent such as profit and loss accounts,
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changes in equity, income statements and the balance sheet which will reflect overall
performance of the firm in the annual year (Leach, 2014). Managerial Accounting: In context
with managerial accounting which has the overall control over internal transactions held in the
organisation such as costs and budgets over different deportment or operations of Free Agent. It
helps managers in monitoring the functional areas of the business as well as produces the
effective information relevant with the actual financial position of firm (Boud, Cohen and
Sampson eds., 2014). Hence, with the help of such data managers or professional heads can be
able to make the favourable investments decisions which are on the basis of expansion of the
business operations. Cost managements: In the context with managing the cost and expenses of
Free Agent there is need to examine the actual requirement in each departments as well as
analysing the returns will be gain through such costings (Meredith, Mantel Jr and Shafer, 2013).
Hence, it can be said that company must seek the actual revenue they gain through such
investment on the pieces of work. If the activity is not fruitful than managers can makes the
alternative decision of can stop such activities. Activity management: These component of the
managing the operational functioning in Free Agent which in turn helps the firm in analysing
the cost requirements as well as labour in completion of such piece of work. Hence, it will help
in enhancing the work efficiency and the profitability of the firm (Heagney, 2016). Investment
Management: In context with strengthening the capital structure of fir there is need to adopt
various techniques which help Free Agent to attract maximum numbers of shareholders of
stakeholders (Mir and Pinnington, 2014). Thus, which in turn helps the firm in acquiring the
large amount of investments and they can generate effective solutions in relation with where to
spent such funds. Internal Auditing: The main managerial accounting system which facilitate
the internal auditing of the company's accounts. Hence, Free Agent has various activities held in
firm so there is need to examine all the accounts of the firm as well as generate the effective
solutions for firm in context with acquiring outcomes from such activities (Gido and Clements,
2014).
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P.2 Methods of management accounting reporting for Free Agent
Introduction: To facilitate effective business results and outcomes which in turn helps Free
Agent in getting the adequate information relevant with operational activities hence, such
reports are being prepared by the accounting professional in the entity and which presents the
overall business transactions held during the period. Thus, the main motive behind presenting
such data set is to analyse loopholes of firm, requirements of efficiency as well as managing the
operational expenses (Martinelli and Milosevic, 2016). There has been favourable impact of
such reporting techniques such as:
 Reports are prepared on the basis of financial and non-financial performance which in
turn indicates professionals in making the effective decisions and facilitate new policies
and procedure for such operational activities.
 It will enhance corporate social responsibility of firm as well as enhances the work
efficiency of workforce.
 The data presented in such reports are authenticated and belongs to the specific sources
from it has generated.
There has been use of such reporting methods which are listed below as:
Illustration 2: Reports
Source: (Lock, 2014)
Inventory management: To meet the demands generated in the market for the products
or services there is need to analyse the inventory storage of Free Agent. Hence, managers of the
firm can go through the data sheet where all the transactional informations were listed with their
actual quantity and price per order (Shields and Rangarajan, 2013). Thus, such informations
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will help them in measuring the requirements of such products in the market. Hence, these
reports will help them to monitor the utilisation of resources, control over wastage as well as
enhance the adequate production of such goods to meet consumer demands. Budgetary reports:
These reports helps the managers in Free Agent to make the effective decision relevance with
the requirements of costs in operating organisational activities (Sears and et.al., 2015). Hence,
these includes various kinds of budgets such as sales, purchase, production, marketing budgets
etc. which in turn benefited the firm in measuring requirements as well as expenses to be made
within the decided limit of expenditures. Job cost Report: Such reports will be fruitful for Free
Agent in measuring costs and expenditure incurred in the completion of the particular piece of
work. Hence, it can be said that there is requirement of various factors in order to complete the
tasks (Hwang and N g, 2013). Thus, such labour costs, material cost and the working hour of
the workforce plus machines must be analysed and measured which in turn facilitate the actual
cost incurred the particular job. Accounts receivable aging: It helps organisations in analysing
the due payments which are to be recovered from the creditors in the coming time such as
consumers, suppliers, distributors etc. Thus, it will be fruitful to make the balance between
company's cash inflow and outflows as well as the collection of the funds (Lock, 2014). Hence,
these are the necessary reports which helps them in making allowable deductions while paying
the tax returns.
M.1 Defining benefits of management accounting system and application over Free Agent
There has been record or all the internal transactions held In the premises as well as
evaluate the efficiency of managers in decision making. Hence, the use of accounting system
such as cost managements, investment, activity management, tax accounting, internal auditing as
well as financial accounting are the main parts of the managerial accounting system. Thus, such
techniques will help Free Agent in managing the budgets and controlling the costs of such
internal operations of the entity (Pemsel and Wiewiora, 2013). However, in accordance with the
various reporting techniques which indicated that the transaction incurred in the internal
environment of the organisation must be formed into the several reports like inventory
management, budgetary control, accounts receivable aging and job cost reports.
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D.1 Integration of the management accounting system and reporting for Free Agent
By considering the use of the management accounting system the managers at Free Agent
will be beneficial in analysing the internal strength of the firm as well as find the effective
solutions to over come with such obstacles (Svejvig and Andersen, 2015). Hence, these
techniques will also help them in improving the work efficiency and strong decisions making.
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P.3 Calculations for various costing techniques for Free Agent
On the basis of management accounting cost techniques accounting professionals of Free
Agent organisation will use the two following techniques which differs from each other (Turner,
2014). Hence, it can be beneficial in analysing the profitability and revenue gathering of the firm.
Thus, in the tables listed below will describe marginal and absorption costing methods which
will reflect lights on the profit gathering of Free Agent such as:
Table 1: Income statement of Free Agent as Marginal costing technique
Income statement of Free Agent on the basis of
Marginal costing
PARTICULARS
Amount
(£)
Amount
(£)
Sale revenue on production 600*35 2100
Cost 700*13 9100
Less: cl. Inventory 100*13 1300
variable expenses 7800
per unit contribution 13200
less: variable overheads on sales 600*1 600
less: fixed expenses
overheads for production 2000
fixed cost on selling 600
fixed cost administrative 700 3900
NP 9300
Interpretation: By considering the above listed table it can be said that the firm has the
valuable profitability which is on the basis of Marginal cost method. Hence, these costing
technique will be calculated at the 600 units of production out of which 500 were sold so 600
units will be multiplied with the selling coat of £35. Thus, the revenue will be gathered by the
firm is for £2100. The cost over producing such articles will be calculated as 700 of the units will
be multiplied with the direct materiel labour and the variable cost of product which together
produces the rate of £13. Hence, the overall cost of production is £9100 and after making the
sales of such products the remaining cl. Stock was of 100 units which were amounted on the
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