Management Accounting Report: Engineers India Limited Analysis

This report delves into the realm of management accounting, focusing on its significance in financial decision-making and organizational planning. The report begins by defining management accounting and exploring various methods, including inventory management, price optimization, cost accounting, and job costing systems. It then examines different reporting methods, such as performance reports, budget reports, and inventory reports, highlighting their benefits. The core of the report involves cost analysis techniques, specifically marginal and absorption costing, and demonstrates their application through income statements. Furthermore, it explores the advantages and disadvantages of planning tools, comparing how companies use management accounting to address financial problems. A case study of Engineers India Limited is included to illustrate practical applications and provide insights into sustainable success through effective financial management. The report aims to provide a comprehensive overview of management accounting principles and their practical implementation within a business context.

Management
Accounting
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Describe management accounting & different methods of management accounting systems
......................................................................................................................................................3
P2. Different methods that is used for administration accounting reporting...............................5
M1. Benefits/ Advantages of management accounting systems..................................................6
D1. Assessment of accounting systems & management accounting reporting...........................7
TASK 2............................................................................................................................................7
P3. Calculate costs through appropriate techniques of cost analysis...........................................7
M2. Application of diverse tools of management accounting & producing appropriate
financial reporting documents......................................................................................................9
D2. Financial reports assists in increasing understanding regarding operational activities........9
TASK 3..........................................................................................................................................10
P4. Explain benefits & drawback of different types of planning tools......................................10
M3. Adopt planning tools..........................................................................................................11
TASK 4..........................................................................................................................................12
P5.Compare how company adopts management accounting systems to offer response related
to financial problems..................................................................................................................12
Comparison between Engineers India Limited &other manufacturing company.....................13
M4. Management accounting solve issues related to finance that can results in sustainable
success........................................................................................................................................13
D3. Planning techniques to solve financial problems................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
INTRODUCTION
Management accounting signifies process connected to financial credentials which
considers different procedure connected to research and management of information that is

related to finance that helps organisation to make appropriate plan for future period of time. They
also make policy that help in proper control over overall activity of organisation. In assistance of
this, the utility connected to accounting help administration team for increment in company
during the period of time. It is not significant for company to accept accounting related to
company as its need is based on goal of company. To manage administration accounting, the
chosen company named as Engineers India Limited. It is considered as a manufacturing sector
and provides different kind of services to its user. This assignment offer discussion in respect of
administration connected to system in addition with its importance, need connected to reporting
process adopted for proper method related to cost analysis which assist in maintaining income
statement by adopting amalgamation and subsidiary cost. In assistance of this, they also focus on
enhancing involvement related to planning tools in addition with its benefit or drawback in using
management accounting that assists in offering solution to financial problem which help in
providing direction to achieve sustainability (Alaeddin, 2019).
TASK 1
P1. Describe management accounting & various methods of management accounting systems
Management accounting
It is considered as a strategy which determines accepting, analysing and also record
financial and non-financial data & information that assists in taking proper decision for
achieving aim & objective of company. There are various types of factor which help in designing
and also they emphasize on presenting appropriate financial statement. In assistance of this, it is
used by administration team of selected company while increasing short and long determination
of time to organise familiar process of organisation without any type of hurdle or issues
(Denison, 2018).
Management accounting system
This concept connected to management accounting is considered as an activity and also it
involve larger scope which assists in reaching to different division of company. The description
connected to various type of accounting system in context of selected company which is given
below:
Inventory administration system determines collection of goods that is adopted at
different places to produce specific good for aim of marketing and administration of inventory
during the period of time. The appropriate records are handled by using this type of method
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signifies date and also time of overall amount connected to catalogue of company. In addition to
this, the primary purpose is to fulfilling needs and requirements of customers during the period
of time. In reference of selected company, the administration team use various method of
administration in reference of tracking inventory and gathering significant information which is
linked with prevailing catalogue which aids assistance in proper determination for need of
inventory in future time period. The appropriate need of inventory administration system is
handling overall record connected to inventory that assists in removing various type of issue
connected to overstock as well as under stock in context of manufacturing (Fuzi, 2019).
LIFO determines stock which is come last that is used in procedure related to production
of goods and services.
FIFO in reference of inventory management system, the goods received and used by
company for first time in relation to production process.
Average cost this method related to inventory management is used for bringing inventory
for fundamental cost as per average price.
As per overall system connected to inventory management, the management team of
company can adopt FIFO tool as it is significant for manufacturing Pharmaceutical item which
provide satisfaction by offering superior goods or products to them (Kamordzhanova, 2019).
Price Optimisation system is considered as a numerical assessment by which
dissimilarity related to instruction is planned at different extent of cost that is considered
as a price optimisation system. In assistance of this, the tool is adopted by management team to
manage price connected to input origin. In selected company, the administration team can
analyse response of customer in context of different process of product that is manufactured by
them. It assists in setting price of goods that is manufactured by company by which result is
achieved in future period of time. It is needed to assign product & price in an appropriate manner
that assists in accomplishing outcome in future time period.
Cost accounting system this aids assistance in anticipation connected to different product
of company and determine factor that is related with productivity, analysing stock and
controlling costs. It is important for management to assess appropriate price that is connected
with goods and proper opinion in context of procedure that is related to commercial purpose. In
assistance of this, in reference of selected company, the administration team can implement this
type of method to assess final inventory, value of whole stock of goods in assistance with

procedure related to work. The administration in addition with technique help superior account
by having price that is related to equipment during manufacturing goods such as clothing, cost
administration system which is needed in working at environment to assess price of various
goods that help in managing financial statement (Kaspina, 2017).
Job costing system it aids assistance to substance, cost, and labour for specific product
which is considered as a job costing system. For this type of method is adopted in manufacturing
commodity that is differ from each other and also assessing appropriate cost of every item. In
context of selected company, the same department is increase for accountability connected to
management cost in addition with expenditure of products. The primal need of this type of
method is to monitor and control product and worth connected to job finance by taking into
account both actual cost to provide proper outcome.
By using this method, the management team of selected organisation handle proper record
related to operation in proper way within atmosphere of company. All this assistance in
increasing functioning that enhances profit and sales of business organisation (Murray, 2017).
P2. Different methods that is used for administration accounting reporting
Management accounting reporting
In company, there are different types of report of book accounting which is design and
have an importance while allotting information to top management. Accounting report determine
preparing, analysing & execution of proper determination during the period of time. For this
process, the report is designed by management team in business organisation as they offer
accurate information related to finance. In assistance of this, the management team of selected
company can adopt this type of accounting report which is going to be mentioned below:
Performance report with aim of working and analysing subordinate and report connected
to performance which is maintained. This kind of report offer comparison between significance
and its execution of tangible presentation and its improvement. The USP is considered by
analysing actual outcome and also performance which is presented by adopting this type of
report. The administration team of company can monitor or control appropriateness that is occur
in execution of subordinate & analyse performance during the time interval (Nashiruddin, 2019).
Budget report it is important report that assists in analysing financial execution of
company in accounting period of time. The administration team increase organisational extends
that assist in maintaining budget for company. The manager of selected company can assess
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previous level of performance connected to finance that is used in managing budgets to achieve
appropriate outcome in future time period (Nuhu, 2017).
Inventory and manufacturing report the company emphasis on estimating
manufacturing activity. This kind of accounting report aids assistance in maintaining act that
provide support on recording or maintaining records related to manufacturing and adopts goods
for proper use of function. It determines appropriate sequence like transparency, maintain
records related to wastage and employment cost. The administration team of selected company
emphasize on making comparison of prevailing record in addition with past records by adopting
statement for analysing requirement connected to increment. By monitoring these, the
administration team adopt plan that help in executing inventory in an appropriate manner. The
primary purpose is to properly use resources and also minimise wastage during the period of
time (NGUYEN, 2020).
Account receivable report this kind of assignment is managed by company that assists in
analysing repayment connected to uncertain finance record. It determines accounting connected
to person as per time, outstanding length related to statement In assistance of this, the
administration team of company emphasized on analysing financial decision connected to user
and also improve report by using differentiation column for receiving amount and the value
which is not received that assists in analysing fault during the period of time.
On above given mentioned accounting report, it is assess that it is important to control
different cost and enhancing improvement that assists in accomplishing favourable results in
future time period.
M1. Benefits/ Advantages of MAS
Accounting system Advantages
Inventory management system The organisation properly maintained record connected to
account and handle it in an appropriate manner. The
selected company can emphasis on reducing wastage as
well as increasing production in addition with this tool.
Cost accounting system It is helpful for controlling price of administration and
control manufacturing for producing sales within company.
Price optimisation system It is significant for analysing price of products and services,

the selected organisation take advantage by implementing
price optimisation system that assists in enhancing
efficiency level.
Job order costing system This tool provide benefit in context of company that help in
allotting task between subordinate and management as per
goal that is achieved in timely manner.
D1. Examine accounting system and reporting in management accounting
Management report and accounting system are interlinked with activity of organisation like
accounting system that assists in determination that arise in analysing company to operate
producing activity. The accounting report is useful in designing and analysing standard data &
information in addition with tangible information that assists counter active achievement which
are adopted in reference of company. The management team emphasis on adopting different
tools like price optimisation, job order costing and many more that assists in preparing budget
report, its performance and many more for executing performance level within an organisation.
The management team of selected organisation adopt this type of system and also maintain
report which assists in accomplishing goal in pre-decided period of time (Schaller, 2018).
TASK 2
P3. Determine costs through techniques of cost analysis
Marginal costing is significant analysis process which is used by organisations. It is
considered as a changeable cost which includes substance price, labour price and so on. This is
adopted by management team to analyse whole cost on manufacturing cost of commodity.
Income statement by marginal method:
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Absorption costing: Absorption cost is considered as a approach connected to costing
which assess whole expenditure connected to manufacturing of specific good of company. It
offers accurate outcome as well as costs are considered in it.
Income statement by using absorption method:

M2. Application of diverse tools of management accounting & producing appropriate financial
reporting documents
The processes and procedures of accounting implemented by accountant of company for
proper execution or managing record connected to financial information of company in an
appropriate manner. Administration team of company can adopt diverse type of accounting tool
connected to marginal costing and absorption costing that assists in managing payment related to
services. This type of documents is adopted by another party that is stakeholder to maintain
proper determination process. The financial team emphasize on analysing information and also
manage fiscal statement like balance sheet, cash flow and many. In context of determining
financial management connected to company that help in accomplishing competitive advantage
over rivalries in the market (Smith, 2018)
D2. Financial reports assists in increasing understanding regarding operational activities
Fiscal report is analysed as significant document that is used by investor and stakeholder
within an accounting year. As per statistical data &information, in reference of income statement
it is necessary to analyse by selected organisation to emphasize on enhancing profit in November
and December. By adopting technique related to absorption cost, it is analyse that the net income
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for the month of November is approx £7900 and for December the income is £8300. In
assistance of this, at same time by adopting subsidiary costing methods, the profit for month of
November is approx £6100 & in December the profit is £10100 of income statement which is
prepared that consider whole transaction that assists in interpretation connected to performance
of company in proper manner.
TASK 3
P4. Explain benefits & drawback of several kinds types of planning tools
It is considered as a record related to pre-arranged assets. The cost of revenue for fiscal
period must be estimated that signifies fiscal condition in assistance with objective. It is
maintained for 1 year that determines cash flow, income statement & many more. The top
management emphasis on managing budget and also converts them that must be followed by
member of company and operate it consequently.
Budgetary control
It include procedure that help in making comparison between expected & actual
performance connected to entity that help in filling deviation gap and also deal with such types
of gaps. In addition to this, the administration team manage future budget that help in designing
various budget. It included making proper coordination between different departments like
production, finance, human resource and so on. There is different budgetary control implemented
by company which is given below:
Cash budget determines information in respect of inflow of cash and outflow of cash in
company during the period of time. The aim is to manage budgets to analyse liquidator within
company and also they analyse cash available within company that assists in managing
expenditure related to working. This budget helps manager to make proper plan which is helpful
in future time period (Srirejeki, 2019).
Advantage it is useful in assessing requirement of cash in upcoming time period and
eliminates or reduces extra expenses.
Disadvantage sometime, it creates over usage of resources related to finance which is
considered as disadvantages connected to budget.
Operating budget is related with income and expenses of particular operation such as
sales anticipation and many more. Thus, it is managed for short time period and budget is used

by manufacturing department in order to calculate income and expenses which is connected with
production activity.
The advantage of this type of budget help in making other budget that helps in
maintaining proper policy. All type of budget is centralised on anticipated sales, cost and so on.
All function connected to accounting help by administration team to take appropriate decisions
that is better for organisation.
The disadvantage of this is it is not based on fulfilling aim of company which is based on
objective of organisation (Denison, 2018).
Master budget is considered as integration of all budgets. The overall budget assists in
finding variation connected to another budget. It includes information in respect of account,
statement that is necessary for operation of organisation. It determines the objective of company
that aids assistance in maintaining proper master budget during the period of time. It helps in
assessing cash flow and to accomplishing potential planning during the period of time.
The advantage of this budget is analysing whole performance level of organisation and it
helps in tracking overall business and analyse financial duties. It assists manager that there is not
any type of division within work of company.
The disadvantage connected to budget is based on their functions of company as it is
considered as easy as compared to it on continuous basis. For maintaining, it is important to
possess superior competence of individual person that help in making regular activities that
enhances cost for organisation.
M3. Adopt planning tools
Planning tool is adopted in planning as well as forecasting budget. It is considered as
planning techniques that is important for monitoring whole activity of company. There are
various types of planning like cash budget master budget which is used by administration team
of organisation. All type of budget is beneficial for company to analyse future expenditure and
income by using proper application. The manager emphasised on anticipating budget that assists
in achieving goal in pre-decided period of time. It will aids assistance in preparing record and
offer appropriate information in respect of activity of company.
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TASK 4
P5. Differentiate how firm adopts MAS to offer response related to financial problems
Financial credential is considered as a primary issue which is faced by every company
while organising activity that is connected to finance. These issues arise due to different factor
such as external force, business cycle, internal element and many more. For resolving this type of
issue, the financial administration is important. There are various types of financial problems that
are confronted by them which is given below:
Poor cash administration for conducting operations of company in proper way, it is
significant to manage cash in appropriate manner. In reference of selected , the administration
team is not able to manage cash in an appropriate manner because there is not any kind of proper
information related to inventory, change in external atmosphere that enhanced competition.
Late payment by client every company have some customers while purchasing products
and services on credit basis and they do not conduct payment that enforces direct impact on
budget of company.
Management accounting approach
There are different method connected to management accounting that is used by company
is given below:
Benchmarking is considered as an method of accounting which determines organisation
to analyse execution by proper comparison with each other. It assists management team to
analyse various option connected to growth and improvement. By adopting this type of methods,
the management team of selected company focuses on making effective comparison of strategy
with each other that assists in assessing fiscal issue during particular phase of time period
(Alaeddin, 2019).
Key performance indicator this method aids assistance in setting parameter in reference
of assessing factor. It is considered as a favourable evaluation that assists in using monetary
value that aids assistance in resolving different type of problem connected to finance. It is
considered as a way that is increasing understanding regarding information within company. It is
significant in handling process connected to financial information in addition with document of
company. By using these KPI helps in accessing to proper decision making and it too assist in
using of appropriate strategies.

Comparison between Engineers India Limited &other manufacturing company
Engineers India Limited Other manufacturing company
Problem the financial management of
company confront various type of issues
connected to delay payment by client that
enforces direct impact on performance level
of company. For such type of issues are
decreased by adopting benchmarking method
connected to administration accounting that is
used in making proper comparison between
gathering cash from client by using method
that is adopted by other organisations.
Problem the issues that are analysed by
accountant of organisation which is suffered
from poor management of cash that influence
position of company in competitive
marketplace as it enforces direct impact on
different operation connected to budget.
There is different type of issue that is resolved
by using KPI tool and management team
emphasize on analysing execution of stock
transaction processing system.
System for resolving this type of issue by
offering appropriate information connected to
finance administration team of company can
adopt price optimisation method connected to
management accounting with purpose of
setting framework connected to price in
assistance with purpose is to keeping credit
information to pay costs on suggested period
of time.
System to resolve this type of issues &
problem, the management team used
inventory management in reference of
tracking inventory and also maintains record
of whole information on computer system
(Fuzi, 2019).
.
M4. Management accounting solve issues related to finance that can results in sustainable
success
Management Accounting focuses on resolving different type of issues by offering proper
information connected to finance. The manager of company adopt price optimisation method
connected to management accounting that help in setting framework connected to cost in
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assistance with this, their primary purpose is to keep credit information that help in paying price
on suggested period of time.
D3. Planning techniques to solve financial problems
The tools of planning assists in resolving different type of problem. Management team
used inventory management in reference of tracking inventory and also record whole data on
computer system. These types of issues and problem are resolved by using KPI technique and
management team emphasis on analysing execution of stock transaction procedure
(Kamordzhanova, 2019).
CONCLUSION
On given assignment, it is assess that management accounting signifies process
connected to financial information which considers different procedure connected to research
and management of information that is related to finance that helps organisation to make
appropriate plan for future period of time. This assignment offer discussion in respect of
administration connected to system in addition with its importance, need connected to reporting
process adopted for proper method related to cost analysis which assist in maintaining income
statement by adopting amalgamation and subsidiary cost.

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Smith, 2018. Integrated Reporting
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