Management Accounting Report - BTEC Higher National, Unit 5, 2018

This report provides an overview of management accounting, focusing on its application within the business environment. The report explores how management accounting utilizes financial data to aid planning decisions, and the monitoring and control of finance within organizations. It delves into the core principles of management accounting, including marginal and absorption costing techniques. The report begins by introducing the concept of management accounting and its importance in providing crucial information for managers and accountants, enabling informed decision-making. It then elaborates on the role of management accounting systems, highlighting the significance of the Management Information System (MIS) and its function in aligning organizational processes. The report further discusses the cost accounting system, explaining its role in determining production costs. Finally, it concludes by examining the application of marginal and absorption cost techniques in profit calculation, providing a comprehensive understanding of how these methods contribute to effective financial management.

MANAGEMENT
ACCOUNTING

Table Of Content
 Introduction
 Management accoutring system and management
accounting reporting
 Marginal and absorption cost techniques to
calculate profit
 References

Introduction
Managerial accounting provide a structure to produce
important information to managers and accountants. This is
one of the essential aspect which is used in decision
making process. Controlling the cost and analysing
financial problem is one of the major criteria covered by
management accounting system.

Various management accounting system
and its requirement
Managerial accounting is an another form of management
accounting which is rapidly used by managers and
accountants for effective management and operation of
business. Management accounting helps to align the
organisation's functions in single format in order to control
and monitor the actions and operations of departments.

Management accounting system
Management Information System (MIS): this is one of
the management information system which is rapidly
used by the organisation in responding operation and
management problems. A summarised information issued
by the departmental managers in order to align the
process details in single format

Continue...
Cost accounting system: this accounting system helps the
managers to ascertain the cost of production and
managing the organisations departments. It provides a
system to record the transactions and helps accountants to
prepare cost reports. Cost accounting system contains
various cost principles and cost rules such as historical
cost, present value of inventories.

Calculation of profit by using
Marginal cost techniques

Calculation of profit by using
Absorption cost techniques

References...
Abdel-Kader, M. G. ed., 2011. Review of management
accounting research. Springer.
Bebbington, J., Unerman, J. and O'Dwyer, B. eds., 2014.
Sustainability accounting and accountability.
Routledge.

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