Management Accounting Report: Systems, Techniques, Analysis, and Tools

This report provides a comprehensive overview of management accounting, encompassing various systems, techniques, and tools essential for effective business management. It begins by defining management accounting and its multiple forms, including cost accounting, direct costing, standard costing, price optimization, job costing, and inventory management systems. The report then delves into the different types of management accounting reports, such as performance reports, budget reports, and cost managerial accounting reports, highlighting their significance in providing relevant data for decision-making. Furthermore, the report analyzes the advantages of each management accounting structure, emphasizing their roles in cost assessment, inventory control, pricing strategies, and job execution. Finally, it addresses the pros and cons of planning tools like budgetary control and explores how these tools are used to formulate budget forecasts, ultimately contributing to organizational objectives and goals.

Management
Accounting

Table of Contents
TASK 1............................................................................................................................................3
P1 Management accounting and its multiple forms of system...............................................3
P2 Management accounting report and its different reforms.................................................6
M1. Analysis of all the advantages incurring from management accounting .......................7
TASK 2............................................................................................................................................8
P3 Cost evaluating tools and techniques in order to make income statement........................8
M2 Management accounting techniques plus financial reporting documents.......................9
TASK 3............................................................................................................................................9
P4. The pros and cons of planning tools of budgetary control...............................................9
M3 Use and application of planning tools to formulate the budgets forecasts....................10
TASK 4..........................................................................................................................................11
P5. Management accounting structures going to be followed in organisation.....................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Accounting system is the formative and mainly a theoretical system in which the
respective personal record and maintain the overall transactions of each and every particular time
period that reflects the growth or failure of the organisation in that period in terms of earning.
The recorded data in the accounts of the company are also used for the further, calculations,
analysing and summarising the conditions of the business. The accounting thus could be
considered as the most important term in managing the most effectiveness in the business as with
the support of old recorded accounts plus details the enterprises articulates its planning plus
operations within workplace. Thus in managing a firm plus controlling, monitoring, recording
the overall transaction in the management of the workplace is termed as the management
accounting.. In this project report the main elements plus forms of multiple management
accounting along with their reforms are discussed. The major concept of relating the workplace
with the certain form of accounting, the advantages plus disadvantages are also elaborated in the
report. Along with that the form of problems and certain barriers that a workplace faces in the
accounting plus another procedure, their evaluation plus proposing the right set of solutions to
overcome such problems are discussed.
TASK 1
P1 Management accounting and its multiple forms of system
Management Accounting:
The management accounting is itself a combination of two main factor plus function. The
main terms in that they are devised could be incurred as it is basically a accounting structure that
is an integral part in the business plus its management that contains more operations plus
activities another then the basic responsibilities of the accounting. The formulation plus study of
the managerial report are also a part of the management accounting along with that it does it does
impacts on formulation of the certain planning plus determining the right set of policies plus
principles that could be used to attain the maximum number of profit to the firm. The
management accounting structure are considerably clutches dynamic kind of reforms in the
workplace that is used to evaluate plus study of the elements in every department to make the
workplace more strong plus enabling it to accomplish the organisational objectives plus goals in
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terms of generating high revenue. The effectual structure of the management accounting is
defined here by as follows :-
Cost Accounting System: The cost accounting structure majorly emphasis on the
monitoring plus recording of all the transactions out flows that have been made out in respect to
complete the tasks plus activities plus all process to manufacture plus Carryinig the merchandise
to its consumers. Thus the cost of any product, procedure, task plus operation is certainly derived
plus planned with the support of cost accounting structure. The cost accounting structure is the
basic foundation in determining the cost plus prising factor. Along with this it certainly plays a
major role in the business in assessing the acurate need of the finance to any activity. It aids in
creating, forecasting plus comparing the estimate to any cost in curing task in the organisation.
Direct Cost: It is comprised of direct expense that has incurred in the overall process to
completion of the respective project. This cost can be recorded and can be considered at the
beginning or after the expenditures.
Standard Costing: The standards cost is basically a costing system which is done by
calculations and examination of outcome that is the result of the differences among actual cost
that have been incurred in the application and execution of plan plus the evaluation of estimated
budget of the cost. It aids in assessing the los plus profit margin from the organisational objective
plus aids in setting up of standards regarding the expenditures by understanding the actual
multiplication.
Price Optimisation system: This is the another form of management accounting
structure in this structure the major elements that effects the prising of any product or services
are considered. The discussion of pricing is thus supported by the accounting structure
particularly. This accounting give a accurate outline to decide the price plus give all the rational
to the management in the confines of an enterprise to ascertain the overall plus maximum price
to any good or service.
Job Costing system: The job costing structure defines all the step that would be incurred
while executing the task in the enterprise to accomplish the goals plus objectives. Thus to an
example in order to manufacture a product in the enterprise there are multiple steps would have
be comprising with the collection of the raw material to its marketing plus distribution to the
retailer. In the job costing structure all the elements that would be incurred to perform plus
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execute each step in the formation plus production of the product would be evaluated plus the job
costing would be measured . this accounting structures aids in estimating the overall cost that
would be expensed in multiple kind of jobs.
Inventory Management system: The inventory manage structure is refer to the
monitoring, calculating, organising plus planning of all the stock in the ware house that would be
required in the trading of the enterprise at good amount. The inventory management further aids
in analysing the financial position of the merchandise in the market that are provided by
company along with that it also support in understanding the demand plus need of the products
plus maintaining the most effective flow of supply. The inventory management is also
responsible to the reporting the important details regarding the lack of any product or over
stocking (high availability) of any product. The concept of cost thus could be analysed with the
term FIFO and LIFO that basically states the principles of first in first out plus last in first out
both are multiple form each another in the manner of Carrying plus collecting the offerings of the
workplace. In the context of inventory management structure The LIFO is stated as when the last
elements are required to be sell out in the first time. The FIFO is assessed as the selling of those
goods in the first series that originated at first time. The another significant method in the
inventory could be used as the weighted average method. In this method cost of goods that are
available to sale are divided by total number of units available.
Financial accounting System- The financial accounting is the system in accounting in that the
accounting process is carried forward by doing the recording, analysing as well as summarising
of all the financial transactions along with all the integral elements of money and finance within
the organisation. The earning and the negative losses in the business are handled by Financial
accounting system within market. It perform such as the most effective measure top monitor
and control of financial activities in the workplace in the current as well as to the future .
Comparison in between management accounting plus financial accounting structure:
Basis Management accounting structure Financial accounting
structure
Legal requirement The management accounting is not
obligatory or regulated by
government for the practice within
the work place. The main purpose of
The financial accounting form
is compulsory to be regulated
as per the law in kind of
business enterprise. Thus in an
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implementing this system is to
increasing the smoothness and
efficiency in the working and
managerial structure.
enterprise. it is needed to be
practice the financial
accounting according to the
drafted regulations.
.
Format of presentation It has unlimited formats to be used in
the presentation as there are multiple
and different formats which can be
used in the management accounting
In the financial accounting it
is essential to follow the right
plus suitable format of
presentation.
Data type sourcing of data is done from the
financial and non-financial elements
only financial data is used and
interpreted in the following
accounting system.
Area of coverage of
within the organisation
The internal structure comprising of
all the departments and all the
sections are covered by this form of
accounting.
Financial accounting captures
the internal system as well as
the external factors of
attributing the financial
elements.
P2 Management accounting report and its different reforms
The management accounting provides as the instructive document that is equipped with a
motive to providing the relevant data plus details. There are multiple methods of management
accounting structure to current a report. The management accounting report are comprised of
multiple statement that support the manger in multiple department to articulate planning
considering the respective policies of organisational work. Such forms of report include
monetary as well as non-financial factor of details. Excite Entertainment Ltd prepares certain
forms of reports encompassing of required plus most effective details from multiple factor of the
business. These reports are as follows :-
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Performance Report: The report to performance is the accurate statement that holds the
details of performance plus its measures in the organisation, in respect to management
accounting the report to performance thus could be stated as the evaluation plus assessment of
the performance plus qualities of the work of employees plus management in the workplace.
Budget report : The budgetary statement is a document that aids in presentation among the
management accounting where this report is used to make a comparison form the planed plus
ascertained information from the actual expenditures plus performance standards of the
organisation. The budgetary statment states the estimate to the organisational activities plus their
application and execution to the said period of the time. It is particularly based on the internal
factors of the workplace. The budgets that are presented in the report are considered as the end
limit of expensing the unit of monetary element in the completion of the project in the
organisation
Cost managerial accounting report: The cost managerial accounting report could be
said as the effectual form of report framework that aids in assessing the profit plus loss gained
from multiple forms of activities. In this accounting report the total expenditures before sales are
calculated these forms of report support the manager to examine the conditions associated with
the sales plus marketing of the product. Thus it also clarifies the workplace regarding the losses
plus profits regarding their significant merchandise (Hartmann plus Young, 2013).
M1. Analysis of all the advantages incurring from management accounting .
Advantage of cost accounting structure:
 It has multi-dimensional approach in enterprise as it captures the costing factor of
every element from start to the end of a products manufacturing.
 It is the helping tool in assessing cost of product as well as services as with the
help of that the workplace could gain a significant amount of profit.
Advantage of inventory management structure-
 It is the effective tool needed to most effectively pursuing record of every unit
available that are not available in the stock in the firm.
 It assists in saving a lot of time, cost and all valuable resources
Advantages of optimisation of rate structure-
 This structure support in the decision making of the workplace regarding the price
distribution of the product. The standard price to any product is not too much plus
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not too less that could be accomplished only by the optimisation of rate structure
in the organisation.
 It gives appropriate guidelines for the examination of reviews and market
reaction in respect to the price.
Advantage of job costing structure-
 The main benefit from the job costing structure is its calculations plus estimation in
respect of the total expenditures that would be incurred to accomplish a task.
 Another major advantage of job costing structure is that it keeps pursuing of the
continuing the task plus the jobs in the enterprise that assists the management to most
effectively control and view the operations plus process
TASK 2
P3 Cost evaluating tools and techniques in order to make income statement
Absorption costing method- The absorption costing method that is widely used to the
cost analysis that is done by calculating both the fixed plus variable cost plus taking all the
related consideration as a unit itself .
Marginal costing method- The marginal cost method is an another form of cost analysis method
based on the principle in that the fixed cost is taken as the period cost while the variable cost is
considered as single cost. This is also known as the variable costing method .
Income statements of Excite entertainment workplace to month of may(Absorption costing
method)
Particular Amount(in £)
Sales
Less- Cost of good sold
Gross profit
Less- Selling plus manufacturing expenditures
Net profit
120000
70000
50000
-
50000
Income statements of Excite entertainment workplace to month of may(Marginal costing
method)
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Particular Amount(in £ )
Sales
Less- Variable cost
Contribution
Less- Selling plus manufacturing expenditures
Net profit
100000
50000
50000
-
50000
M2 Management accounting techniques plus financial reporting documents
The management accounting techniques are the effectual tools plus could be said as the
tactics that are used by the managers in order to record plus evaluate the financial plus non
financial; elements of the enterprises in its internal environment. There are certain documents
that are required by the enterprise in order to complete its working. P&L, trading account plus
balance sheet are these documents.
TASK 3
P4. The pros and cons of planning tools of budgetary control.
Budget:
The budget could be said as the preparatory document that is articulated to determining
the use of the monitory resources in the organisational activities either to the business operations
or to the required expenses. There are multiple methods that could control the budgetary
elements in the firm
Sales budget:
The sales budget is associated as the planning of sales of particular product or services
within the enterprise to a specified period of time. In relation of the Excite Entertainments Ltd.
the major profit and loss is prepared on basis of its sales budget.
Advantage:
 The sales budget supports in formulating the plan plus estimate of the sales to accomplish
the profitability in firm..
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Disadvantage:
 The major drawback is that it is a time taking process.
Production budget: The production budget is considered as the form of financial plan that
undertakes all kind of activity plus related expenditures that takes place during plus before the
production in the firm.
Advantage:
 Within Excite Entertainment, the production budget supports in achieving the target of
firm by using the minimal resources plus giving the optimum outcome form them.
Disadvantage:
 The process is quite complex, along with that the production budget is also very rigid as
the viable cost of multiple elements are changeable as per the market conditions
Cash Flow Budget: This form of budget is formed by considering all the forms of inflow plus
outflow of cash in the workplace.
Advantage:
 The cash is most effectively monitored by the firm with the cash flow budget,
Disadvantage:
 The cash flow budget is less effective as it does not support in increasing the flexibility
with the cash in the firm.
M3 Use and application of planning tools to formulate the budgets forecasts
The multiple course that are required in the formation of planning plus control of the budget are
called as the tools by that the management articulates the effectual plan plus estimate the budget
to the multiple departments plus organisational activities. These tools are described as follows :-
To ascertain the most actual effectiveness of planning tools of budgetary control the
various form of planning tools with advantages plus disadvantages are defined as follows :
Forecasting tool: The forecasting tools is associated with the anticipating of upcoming
activities plus events of the business. The forecasting tactic is used to ascertain the possibilities
of the futuristic outcome of the activities plus operations of the business by assessing the past
records plus figures of the business. In context to Excite Entertainment Ltd. This tool of
forecasting would be utilized by breaking fiscal elements in the organisational factor. The
benefits plus the drawbacks of the forecasting tool in reference of Excite Entertainment are as
follows :-
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Advantages:
• Forecasting tool would be effective to the workplace in formulating the strong
planning plus budget estimation to the business plus to its most effective survival plus
growth in the market.
Disadvantage:
• There is a risk with the forecasting as it does not give any surety with the continuous
changing environment of the market
.
Contingency tool: The contingency tool is associated with the contingency planning that
means in the contingency plan it constitutes the major courses of action that is based on the
solutions to the threats of multiple kind of adverse condition that could affect the business with
any kind. The contingency tool emphasises on the negative circumstances that might happen in
the time of executing the operation or even after that . Along with that it does contain the
methodologies, back up plans plus timetables to dispose of the complexities. The advantage plus
disadvantage of this tool s as follows
Advantages
 The contingency planning has its significant benefits bascically it is capable of handling
the certain issues that may be emerged as a problem to the organisation.
Disadvantages:
 The contingency planning is a time taking prices it does need a specialised manger plus
planner to ensure the most effectiveness of the plan. Thus it also becomes as most cost
taking process.
TASK 4
P5. Management accounting structures going to be followed in organisation
Financial problems: The financial problems are referred as the lack of accurate financial
resources in the organisation. That restricts to practise of required task plus activities in the
workplace due to low availability of cash plus monetary terms. The Excite Entertainment Ltd
makes an effective range of alternates by that financial problems could be cope with.
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