Management Accounting Report: Financial Analysis for Nisa (UK)

This report provides a detailed analysis of management accounting principles and their application within Nisa, a UK-based retail company. It begins with an introduction to management accounting, highlighting its importance in financial decision-making, and then delves into various essential require...Read More

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P.1 Management accounting and essential requirements of different types of management
accounting...............................................................................................................................1
P.2 Different method used in management accounting..........................................................3
D.1 How management accounting use in organisation..........................................................5
TASK 2............................................................................................................................................5
P.3 Difference between management accounting techniques................................................5
M.2 Management accounting techniques and produce appropriate financial reporting........7
D.2 Interpretation is help to business activity........................................................................7
TASK 3............................................................................................................................................7
P.4 Advantages and disadvantages of different types of planning tools that can be used for
budgetary control....................................................................................................................7
P.5 Management accounting systems to respond to financial problems................................9
M.3 Planning tools is help to find out any problem.............................................................10
M.4 Regarding financial problem and management accounting..........................................11
D.3 Planning is solved financial problems...........................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Management accounting is a process to manage financial factors in the working
environment. In this context, future decision making is based on the financial sector. On the
other hand, proper financial management is most essential with the help of some method to be
used in working state of affairs. This written report is based on Nisa which is an independent
grocers and has less than 50 employees. This company is basically located in United Kingdom
and provide different services in retail sector. Further, it covered income statement and cost
analysis management which is helpful to distribute income in various fielded of internal working
situations (Klychova and et.al 2015). In addition, administration accounting system is helpful to
improve internal environment so that business action can be carried out. In addition, financial
report and interpretative data is useful at the time to take new decision in working environment.
TASK 1
P.1 Management accounting and essential requirements of different types of management
accounting
Management accounting is most essential part of each and every organisation. It has
helped to manage finance at internal and external work, which gives positive result in future time
periods. Manager uses provision of accounting information in order to provide better information
and to take any decision in work place. It is one of the most important part to manage the growth
rate in market and to make some changes as per need of financial department. On the other side,
financial data and advice to the organisation is most essential part to improve the work and
modification in development rate in market (Coad and et.al , 2015). Moreover, management
accounting is a process to maintain all the transaction that are to be recorded and analyses in
order to be used in internal working environment. There are feature of management accounting is
used form development are as follows :
 Management accounting is selected by the firm for little information in bulk. Only useful
information about the facts which is beneficial for overall development in market are
carried into action.
 The financial accounting shows different basic and makes some correction in financial
sector (Hall, 2016). To be focused on proper planning and take a new decision for more
improvement in future development.
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 Under commercial enterprise accounting system, net income and loss relationship is
prepared to know the quantity of net income earned or loss endured. It does not reveal the
ground for such quantity of profit attained or loss experience.
There are some essential features that must be uses to improve internal working environment and
make some correction as per the need (Coad and et.al , 2015). On the other side, some essential
features are as follows :-
 Cost accounting :- In cost accounting system is focused on approximate cost is to be
used in a working environment. In this way it includes, inventory management, cost
analyses, cost control and profit analyses. All such analyses are most important part and
manage the growth rate in market (Wouters and Kirchberger, 2015). To manage
inventory in the business it is required to manage the growth rate in the marketplace.
Director relies on business concerns and explanation data in unspecific and specific on
expenditure for any task of the troupe may be explained via its outlay.
 Inventory management :- To manage inventory is most essential parts and it controls,
overseeing the order, storage of compound. In this context, dominant and visual
perception of amount of the finished corking for sale (Wouters, and Kirchberger, 2015).
The subjective of stock lists management is to accurately realize present inventory levels
and decreases overstock and under-stock determines. The inventory of the business is the
most important part and uses them in a productive way.
 Job costing system :- This is another most essential part of the organisation. Job costing
system is the use of system of allocation of manufacturing cost to be used in the
organisation (Hall, 2016). To be used each and every data regarding to manufacture and
other factor cost is to be used in service and production job.
 Tax accounting :- In tax accounting is most important for the business growth and
increase the revenue that makes is as a tax. There are different kinds of tax like corporate
tax, duty's and transportation charge is to be used in a working environment.
 Budgetary control :- To manage budget, it is helpful to solve any problem in working
environment. In internal department is focus to prepare a budget for each activity as per
the need of organisation (Nitzl, 2016). This is assistance to find out how much money is
invested to internal department and manage the work in organisation.
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All essential features are most important in management accounting and make some changes as
per the need of future development. In administration accounting price, budget and tax all three
factors are most useful.
P.2 Different method used in management accounting
Organisation is focus on some function like, finance. It is most of the essence function
which is used in overall improvement of market growth. Management accounting is focused on
controlling, planning and decision making in work place. All three factors are most plays
essential part in managerial work (Nitzl, 2016). Proper planning is helping in future performance
and makes a plan with the help of management accounting and increase the growth rate in future
markets. Also, it applied for price which is useful in the future alteration and modification profit
market. To be understand the maximization of each and every activity is to be used in the work
place. Some method used in management accounting are as follows :-
 Cost report :- In this context, it is to be focused on management accounting so as to
calculate cost for each unit. To manage cost is most for the essence part and increases the
market share. In this way it also includes, overheads cost, labour cost etc. all such is most
of the essence part before production start in working environment. On the other hand,
cost report is one of the most crucial part decide the cost as per need in market.
 Budget :- Management accounting is to be a focal point on budget and make some
improvement in level of carrying actions. To set budget, each and every activity as per
the need of adjustment should be carried into action report (Wouters and Kirchberger,
2015). The divergence computed are evaluated when process new programme plus all
subject matter concerning the amount of money is catalogued on the carrying into activity
written document.
 Job costing :- In job costing main focus of this method is to be used in recording
manufacturing cost. The project management and accounting department is to be focused
on to track cost in work environment (Nitzl, 2016). It is one of the most important
department in the process of costing and allocation of cost as per the need of working
environment. Some changes as per the need of market and follow new trends.
 Life cycle costing :- In life cycle costing is use economic factor and some changes as per
the need of organisation. Economic factor is most important part to manage the growth
rate of organisation. Cost is to be decides as per the need of market demand and follows
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economic factor. To manage wok as per the need of marketing environment and
improvement in different factor in work place (Messner and et.al 2016). It compares the
initial investments option and identifies the list cost to be used in marketing.
 Standard costing :- In standard cost is to be used the submitting the expected cost for
and the annual cost to be used in on the job environment. There are to be used cost
accounting records are most essential part to bring off the growth rate in the market (Hall,
2016). The actual costs which are used and expected cost are those costs, which were
used at the time of future time period. The Organisation is to be engrossed on some cost
to be set as per the need of marketing essential and need of market growth.
 Integrated cost :- In integrated cost is to be focus on risk analyse and provide the good
quality of working environment. To reduce the level of risk and to manage as per the
need of marketing environment. Organisation is to be decide cost which is useful and
compare with demand in market. Cost is one of the most important part and increase the
growth rate in market (Andersén and Samuelsson 2016). To analyse risk is useful to
future development and make some changes which is useful for internal working
situation.
 Financial costing :- Financial costing is one of the most important method to manage the
cost as per need of organisation (Hall, 2016). It is also called cost of finance and some
other interest and tax is to be included in the work place. On the other side, some
different complaint, participating in the appropriation of medium of exchange to build or
acquisition quality.
All these methods are used in management accounting for improving the growth rate in the
market. All method is most essential and plastic new monetary funds plus all substance
concerning the amount of money is listed on the carrying into action written report.
Management accounting is focused on control, planning and decision making in the work
place. All three factors are most essential part in managerial work. Management accounting is
selecting only little information from the bulk (Somalia and et.al 2014). In working environment
future development and make some changes which are useful for internal working situations.
Management accounting is the most important part to improve the growth rate in the market and
make some changes in the working environment.
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D.1 How management accounting use in organisation
Nisa need to make use of some new techniques which is used in management accounting
and improve the growth rate in the market. Standard cost is to be used the submitting the
expected cost for and the annual cost to be used in on the job environment. In this way,
integrated, cost is to be decide cost which is useful and comparable with demand in the market.
TASK 2
P.3 Difference between management accounting techniques
Management accounting techniques is one of the most important part that is help to
manage the growth rate in market. These techniques are used to solve any problem in cost
statement and income statement. To manage income statements as per the need of internal and
external factor. They most important reason to analysis marginal costing techniques to allows
attraction of management to be focused on the changes which results from the decisions which
are on the part of thought. For example, material cost, working cost, production overhead costs.
In this way two management accounting techniques are as follows :-
Difference
Marginal costing Absorption costing
In this costing is to be focus on decision
making techniques is to be used for the total
cost of production.
In this context appropriate to the total cost to
the cost center in order to determine the total
cost of production.
The variable cost is to be considered a product
cost and fixed cost as a period cost.
In this way, both the cost is to be considered a
period cost.
To be measuring the profit with the help of
profit volume ratio. (Andersén and
Samuelsson, 2016.)
In these techniques fixed cost is to be used, so
profit will be affected in market share.
To be focus on contribution per unit is the
main highlighted of these techniques.
Net profit per unit will be measure.(Suomala
and et.al 2014)
To be contributed each and every product in
working environment.
To be concentration on presented in
conversational way.
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There is difference between the marginal costing and absorption costing. Both costing is most
important to find out the net profit per year and make some changes as per the need of each and
every working environment.
Income statement for Nisa Ltd. As per the marginal costing
Interpretation :- As per the above income statements, it is focused on some improvement and
growth rate in the market. Net profit and loss both is the main aspect of income statement and
makes some changes as per the need of external market (Messner and et.al 2016). All such
factors are most important to generate the income statement of working environment.
Income statement for Nisa Ltd. As per the absorption costing
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Interpretation :- As per the above table, this is most important and make some improvement in
growth rate. In absorption costing is focus is to inventory valuation and manufacturing expenses
is used fixed costs as well as variable cost (Coad and et.al, 2015). Both the cost is most important
and makes some changes as per the need of internal working environment.
M.2 Management accounting techniques and produce appropriate financial reporting
In this context management accounting techniques is one of the most important part to
manage the growth rate in market. These techniques are used to solve any problem in cost
statement and income statement (Messner and et.al 2016). Income statement and cost statement
both is most important part to increase the appropriate to the total cost to the cost centre in order
to determine the total cost of production. To be focus on net profit is most important and make
some changes in internal working environment.
D.2 Interpretation is help to business activity
In this way, both management accounting techniques are most important to find out the
any problem and make some changes' in working environment. Both fixed and variable cost has
given direct impact on performance and growth rate in the organisation. On the other side, the
fixed cost is fixed at the end of the production in a working environment and variable cost is to
be changed, as per the change in production activity. To be contributed each and every product in
a working environment.
TASK 3
P.4 Advantages and disadvantages of different types of planning tools that can be used for
budgetary control
Budgetary control is one of the most important parts to increase the market share and
manage the work as per the need of the organisation. To be focused on budget in each and every
department as per the need of internal work. Planning is the most important part to manage
budgets in a working environment and make some changes in the overall environment. The
comparison of the monetary fund sum of money with the actual magnitude wills assistance the
administration to locate deviation and make disciplinary actions quickly (Somalia and et.al
2014). Budget is helping to improve the profitability in the market. To be fixed then Some
planning tools is to be used the working environment are as follows ;-
 Pricing :- In price is one of the most important part to set a price strategies help to
apprehension how the challenger ascertain their commodity or work damage and demand
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and provision thought process (Coad and et.al , 2015). Demand and supply to most
important factor that is based on price. It is decides increase and decrease the demand
level in market and make some changes in overall number management activity.
 Costing system :- In costing system natural cost, normal cost and standard cost is help to
find out the cost to be used in overall working environment and make some change as per
the need of job costing and process costing is to be used in environment factor. On the
other side, all costing is most important to find out the financial statements of the
organisation.
 Strategies planning :- In strategic planning is the most important part and organisation
strength, weakness, opportunities and threats is find out any problem in administration.
The company financial position has helped to management activity to understand the
business grow and make some change as per the utilities of the organisation. It is helping
to define the strategy and direction to make some improvement and help at the time to
take a new decision in the working environment (Somalia and et.al 2014). All such
factors is help at the time when the organisation is grown in new field and make some
improvement in market share.
In budgetary control is to be focus on improvement in organisation culture and internal working
environment. On the other side, budgetary control main aim is to achieve profit and generate
more revenue in work place. Some techniques are to be used in budgetary control are as
follows :-
 Zero based budgeting :- In zero based budgeting is focus on all the expenses must be
justified for each period (Somalia and et.al 2014). In working environment each and
every function is to be performance the cost and make some change as per the need of
market share. In each activity budget is to be set and main aim is work is to be done in
effective way.
 Incremental Budgeting :- In this kind of budget is to be set actual use of budget and
supervises work environment of budget to increase the market share. An additive budget
is a budget embattled using a previous period's monetary fund or actual carrying into
action as a basis with additive amounts added for the brand-new monetary fund time
period.
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 Rolling budget :- In rolling budget is to be focus on extension of the existing budget is to
be paperboard and some extra budget is to be added in previous budget. In this way, use
some time in growth rate and doing some extra work in organisation. Thus, the resonating
budgets come to the additive postponement of the existent programme model. By doing
so, a business concern forever has a programme that extends one time period into the
forthcoming.
Some advantages of disadvantage of budgetary control which is used in internal organisation at
the time to set a budget in organisation.
 Advantages :- Budgetary control is turned out the essentialist tools in organisation. To be
manage the cost and improve the level of carrying into action in market. To be help to
find out the policy, plan and objective to be used in next year. It is most important part on
manage the growth rate in market (Wouters and Kirchberger, 2015). In this way, each
and every department is to be focused on work effectiveness to complete the work on
time. It is one of the most important parts to find out any problem in a working
environment and make some changes as per the need of market value. In organisation
employees budget is helping to increase the awareness about the cost and make some
changes as per the need of the market.
 Disadvantages :- In this way, some disadvantages of budgetary control is to manage the
growth rate, but take long time. Inside the organisation many employees are not support
budget control. Hence, forthcoming risks maximise the use of monetary fund control
system (Andersén, and Samuelsson, 2016.). Monetary fund control is a governing body
tool. The monetary fund control occurrence relies upon the topmost administration assist.
When there is non-existence top administration activity, then it will go wrong.
There are all advantage and disadvantage of the organisation and make some changes as per the
need of working environment. Both point is most important part to cover such kind of activity
and manage the growth rate in market (Somalia and et.al 2014). To be help to find out the
policy, plan and objective to be used in next year.
P.5 Management accounting systems to respond to financial problems
Management accounting tools are most important to find out the any problem which in
faced by the organisation and make some changes to increase market share. These are the
position which is demand to acquaint and concerned past the paid as to make the equal to
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growing in skilfulness and the revenue assemblage of them. There are some keys carrying into
action indicators is the most essential part and increase the market share and help to identify the
level of carrying into action in the market(Messner and et.al 2016). To manage work and to
improve work administration accounting techniques is to be help and find out the any difficulty
in working environment. There are some most important skills is to be used in working
environment are follows ;-
 Financial governance :- In this context is to be focused on the organisation is used each
and every issue related to the financial activity and make some changes as per the need of
market growth (Klychova and et.al 2015). On the other hand, monitoring authority is the
most important part to find out any problem and make some changes in the market. Some
strategy is to be used in a maker environment to increase profit rate.
 Effective strategies :- In effective strategies is most important part to find out problem
and solve with the help of effectiveness and use strategies to each and every problem.
The physical process of instrumentality and plan of action that necessity well timed and
effective coverage, full revelation financial, government and are irresponsibly citizenry
and closely-held by the administration (Coad and et.al, 2015). Use more and more
strategies as per the need of market growth and make some changes as per the need of
overall carrying into action in the market.
Manufacturing plants use these systems to help in costing and managing the manufacturing
process. Hospitals implement systems to assist them in insurance billing and other in-house
requirements. The main objective of an internal managerial accounting system is to provide
information to managers so they can make sound decisions. The goal is not to comply with
outside demands, such as those of bankers, but rather to capture valuable data that can be used to
manage and control a business better. For example, a business needs to acquire an expensive
machine, and a management financial system may help the business in timing the purchase when
cash flows are planned to be the highest, avoiding debt.
M.3 Planning tools is help to find out any problem
In management accounting planning tools is one of the most important part to manage the
growth rate in market. Strategies planning is most important part and organisation strength,
weakness, opportunities and threats is find out any problem in administration. To be use some
strategies to increase the market share and make some change internal and external working
10

environment (Tucker and Schaltegger 2016). On the other hand, costing system natural cost,
normal cost and standard cost is help to find out the cost to be used in overall working
environment. To decide cost as per the need of the customer and make some changes in market.
M.4 Regarding financial problem and management accounting
Organisation is to be focus on financial problem is one of the most important part and
engrossment to improve the growth rate in market. In effective strategies is most important part
to find out problem and solve with the help of effectiveness and use strategies to each and every
problem (Coad and et.al , 2015). To manage work and to improve work administration
accounting techniques is to be help and find out the any difficulty in working environment.
Planning is most important part to manage the growth rate in market. Monitoring authority is
most important part to find out any problem and make some changes in market.
D.3 Planning is solved financial problems
It is help to defining the strategy and direction to make some improvement and help at the
time to take new decision in working environment (Klychova and et.al 2015). Use more and
more planning and make some changes in internal working environment and use the budget to
improve the market share. There are different kinds of operations plan is to be focus to improve
the market share and make some changes in budgetary management.
CONCLUSION
Form the above report is to be focused on financial management is most important with
the help of some method to be used in a working state of affairs. This written report is based on
Nisa organisation. In this report is to be concentrating on direct impact on the customer and
make some change as per the need of each and every environment. In addition to this, the
assignment focuses on a cost accounting system to be focus on approximate the cost is to be used
in a working environment. Form the above report budgetary control is one of the most important
part to increase the market share and manage the work as per the need of organisation. To be
focus on budget in each and every department as per the need of internal work. To manage the
budget as per the need of the organisation. In this report is to be focus on planning and some
strategies is most important part to manage the growth rate in market and make some changes as
per the need of the customer in market. Zero based monetary fund is focus on all the expenses
must be justified for each time period.
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