Management Accounting and its Application in Fulham Shore Restaurants

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Management Accounting

Table of Content
I.Introduction of Management accounting
II.Introduction of company
III.Type of management accounting
IV.Role of management accounting
V.Need of management accounting
VI.Use of management accounting
VII. Conclusion
VIII.References

Introduction of Management Accounting
•Management accounting is an accounting system which improve the
efficiency by the use of various tools and technique.
•Management accounting applying the concept of management in accounting
by various tool and technique so can they provide the relevant information for
the support of decision making.
•Management accounting include the concept of cost and financial accounting
methods which can help them in management strategic decisions

Introduction of Fulham Shore
• Fulham shore is a group of restaurants who operated there businesses in
united kingdom.
• Company own and operate Franco Manca and The real greek which work
in delivering the food chain in UK.
• Fulham shore is work for the expansion and purchase new chain of
restaurant to deliver the qualities food in the street of United Kingdom.

Type of Management Accounting
Various type of management accounting concepts :-
• Cash Flow analysis :- Cash flow analysis is the statement which reflect
the flow of the cash during the organisation in a specific time period.
• Financial statement analysis :- Analysis of the Financial statement of the
organisation for the different period can be define the growth of the
business.

Type of Management Accounting
• Capital Budgeting :- Cash flow analysis is the statement which reflect the
flow of the cash during the organisation in a specific time period.
• Budgetary Control:- Ratio analysis is the tool which analysis the
financial information for an organisation for understanding the capability
and stability of business.
• Fund Flow analysis :- Fund flow analysis is define as the flow of the
funds between the sources and application of the company duding a
specified period .

Role of Management Accounting
•Forecasting in Future for company
•Make and buy decisions
•Evaluation of performance activities
•Understanding the rate of return

Need of Management accounting
• As for the Fulham shore work in restaurant industry which include various
expenses so to manage that expenses management need a proper budgetary control.
• Restaurant industries is have various department and to evaluate the performance
of the each department then need the management accounting tools.
• Liquidity is major issue for the restaurants so they have a perfect control on the
flow of cash which can be drive from management accounting.

Need of Management accounting
• Restaurant industry had many of the expenses which is not covered by
management in many of the chances in which variance can be make an adverse
impact on profitability that can be reduce by the variance analysis.
• Restaurant had a margin which can be bear on the services but they need to be
analysis the costing and their ratio on the operations and sales of the company.
• Management accounting provide the variance analysis to control the inventory
damages for the restaurants like Fulham.

Use of Management Accounting
• Fulham is an restaurant chain of United kingdom which need the better control
on the investment decisions over the segment and branches of United kingdom.
• Managerial accounting information's and tools can be useful for the Fulham as
they help them to understand the flow of funds and cash which can be balanced
by monitor.
• Trade cycle is major part for restaurant as they had a quick trade cycle so
management accounting is help them in control and monitor the trade cycle for
the organisation.

Use of Management Accounting
• Fulham is a major restaurant chain which need to be more focus on the inventory
variance so that they avoid the additional cost on sales by using management
accounting tools.
• Restaurant industry is focus on the operations which can be evaluate by performance
ratio , Capacity ratio to measure the performance of the restaurant to make the
decisions.
• Variance analysis guide the Fulham for the loopholes in the operations and make them
efficient in the process which can be rise the profitability of the restaurants.

Conclusion
•Management accounting is an essential part for the organisation and as the
restaurant chain like fulham it play a vital role in decision making based on
financial information.
•Use of various tools and technique of management can be help management to
understand the performance of the company and take a appropriate action
according to the conditions.