Management Accounting Report for Zylla Company Analysis

This report provides a comprehensive analysis of management accounting practices within Zylla Company. It begins with an introduction to management accounting, emphasizing its role in decision-making and strategic planning, and then delves into the specific management accounting systems required, including managerial accounting, cost accounting, job costing, and inventory accounting. The report then explores various management accounting reporting methods, such as budget reports, account receivable reports, job costing systems, and inventory reports. A significant portion of the report is dedicated to the calculation of costs using both marginal costing and absorption costing methods, including detailed income statements. Furthermore, it discusses the benefits and limitations of using planning tools like budgetary control and concludes by examining various measures to resolve financial problems. The report aims to provide a clear understanding of how management accounting supports Zylla Company's financial health and strategic goals.

MANAGEMENT
ACCOUNTING

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1. Management accounting and essential requirements of different management accounting
systems........................................................................................................................................4
P2. Different methods of management accounting reporting.....................................................6
TASK 2............................................................................................................................................9
P3 Calculation of cost by using marginal costing and absorption costing..................................9
TASK 3...........................................................................................................................................11
P4. Benefits and limitation of using planning tools..................................................................11
TASK 4..........................................................................................................................................14
P5. Various measures to resolve financial problems.................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES……………………………………………………………………………………………… 16

From: Management Accounting
To: Director of Finance
Subject: Management Accounting data and information is that which is helpful for the company
in making decision and strategy.
INTRODUCTION
Management Accounting is such which is being made and prepared with the use of statistical
data for having a better decision and strategy as well (Schaltegger and Burritt, 2017). This is all
such which is used by the directors and top executives of company to have a day to day
transaction in right context for having an managerial transactions in right context too. Therefore,
the entity is also having an technology which is being used by firm to provide solution to
organization for having an revamping business in better way too. Basically, dividing the finance
in divisions help in having an minimising the reductions of the wastages in right context too. The
report is based on the Zylla Company which serve millions of people with there diversified
products and services in better way.
Assignment will discuss about, management accounting system which is required in firm.
Moreover, they are such which will include the method of management accounting. Advantages
and disadvantage of planning tools which is being considered as the budgetary control and leads
to have an accounting system in with problem occur with finance department which can be
solved in proper way too.
TASK 1
P1 Management Accounting system and its components.
Management Accounting: This concept is such which help in having a preparation of P&L
Account, Balance sheet and the Cash Flow statement etc. is there even this is something which
needs to be prepared by helping other method of accounting in better way too. Basically,
preparing these account in right format can help company to have working in right context and
different activities of firms as well. Moreover, these type of scenario somewhere help to Zylla
enterprise which leads to collect the information in right format and it is related with the position
in market as well. Although this can help in better strategies and decision which is having an
proper working in correct way (Fullerton, Kennedy and Widener, 2014). Even though, it provide
data related to the sales, cash and raw materials as well etc. in proper manner too. Such scenario
make an financial and non-financial data that manipulate the day to day task and activities in
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right format. Normally, they also used to revamp the performance, budget and also leads with
position in market which do help them to enhance their business or can go with expanding the
market. Hence, this also help in different areas as:
 Strategic management: This is such which also include strategy and having different
factors which is having an various functions in right context as well. Moreover, financial
and non-financial information is there which do lead to have an preparation of the several
budget scenario and also lead to have an standard for analysing the problems which do
arise in between working out of it in right manner.
Risk management: Even though, information which is collected from market thus help
company to determine the different risk criteria that is somewhere also associated with different
functions of organisation too (Renz and Herman, 2016). Example:- Inventory management is
such which do help in having an analysing the stock in great way that also help in having an
continuous resources too, generally it has to be performed according to needs and desires as well
and even in the production part too.
 Performance management: Generally, having an information also lead to having an
contribution that also lead to appraise the performances of employees inn right manner
and also lead to attain the solution in perfect way as well. Moreover it also leads to have
an developing skills with abilities as well for having an different task and various
functions too.
Basically, management accounting system is such which needs to be prepared by Zylla for
having an effective working for entity and some of those as well:
Managerial Accounting: Hence, several thing are there in which managers are making
effective decision and it is be related with the various activities in right context too. Basically, it
also produce the plan and control even leads with some of the major important decisions as well
that do make an improvement in operation department that also lead to have contribution with
desired outcome in right manner.
Cost accounting system: Generally, it is such which help in controlling the different cost which
do occur at the time of having an performance with different functions as well. It is such that
help in having an determination of profitability, inventory valuation etc. therefore, it is required
to have such in right context and it leads to have an effective working so that system can be used
and utilised in proper manner (Otley, 2016).
Job costing: Methods are such of accounting and they also have an identification of cost
which needs to have an incur that also lead to have an generation of jobs in organization and it
also leads to have an earning huge revenue in proper manner. Basically, there are various
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requirement of needs which do help in assigning the jobs and it also make them to collect the
information which will be related with the expenses and revenues as well.
Inventory accounting: Inventory accounting also leads to have an data which would be
related with the inventory side of the firm. Basically, it is such which also make firm to identify
the stock in great way so that demand and needs are of customer that also have an satisfaction in
right context too. Even though, firm is such which help entity to have an information which
would be regarding to inflow and outflow of materials that have an effective production in
organization.
P2 Various method used for the management accounting report.
Organization is such which have different method for account reporting in different context as
well. Moreover, it is be like having an collection of effective data that can be useful for the small
company and also lead to have an proper working in great way (Tucker and Lowe, 2014)
. Various reporting is being used by Zylla in having an preparation of different report too.
Basically, report is such which do include the Budget, Job Cost and having inventory with the
manufacturing. This is such which is having an importance of the managerial reporting and it
also provide an financial and non-financial information for the different department of firm and it
is such which do lead to have monitoring performances of enterprises which do have an top
executives of entity.
Budget report: Moreover, it is such which have an preparation of the budget and firm is
such which do include the expenses that also lead to incur by earlier years as well. Budget, is
such which do help management of Zylla with execution of performances for having an several
department of entity too. Even though, various budget is such which has an control which also
manage the risk in right context. Although, with such scenario a proper solution is also provided
and it is having an different benefits as well that is according to the performances as well. Budget
does help in controlling the expenses that also leads to have process of many different thing and
also having an reduction of different operational cost which do manipulate the company to attain
the desired goals and objectives in effective way as well.
Account receivable report: Moreover, it is such which needs to be prepared by management
accounting officer and also required to maintain the debtors in proper manner as well. Basically,
it is such which is considered as the effective tool and also has to be used by firm and needs to be
managed by cash flows in better manner (Eldenburg and et. al., 2016). Report is also help in
determining the issues and it has to be done that will lead to with association with the collection
of process in Zylla company. It makes them to keep in mind about different number of debtors
which needs to create the proper and also lead to have an policies which is related in right
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Context too.
Job Costing system: Report, is that which is being prepared in by manager of Zylla and
needs to have an analyse with expenses that is going to have an incur with the implementation of
project as well. Basically, it is such which help in matching the different thing with expenses that
needs to have an expected revenue too. Basically, it is being considered as opportunity regarding
evaluation of profit with profit and it will be going to be started by firm and needs with
accomplishing target etc. Generally, helping generating with large number of having profit in
better way. Normally it will help in generating contribute of cost and it is firm and it also help in
reduction of operation and its areas which result into some worth as well.
Inventory report: It is something that also include the report of having an inventory and having
an production of Zylla in effective way. Basically, report is having an management of raw
materials that lead to help in finished goods (Williams, 2014). Generally it is such which also
lead to have an preparation of product and according to market demand as well in right manner.
P3 Calculation of cost with absorption and marginal costing method.
Cost: It is being considered as investment for some of the amount of capital in production
process and it also lead to have an quality product and services for having an different customer
as well. It is being considered as determine cost and also lead to incur at some of the stages in
having an production process which do sell the quantity product that there ultimate customers in
an effective way.
Marginal costing: It is being considered as having an production process in there extra
unit for there product with there variable resources in right manner. Moreover, having an
calculation of using an marginal costing and also make them to lead with variable cost that taken
into account which leads to exclusion of fixed cost. Basically, it is used by small firm and it also
help firm in having an higher income and profitability in great manner as well.
Absorption Costing: Normally, it is being considered as the different method for having
an purposes with the calculation with the actual cost of product, both variable and fixed cost into
account in better manner as well. Moreover having an addition of cost which needs to fixed and
having an cost with profitability, even though they also needs and forward which needs to
compare different thing with marginal costing method as well in right manner.
Calculation through marginal costing using
Income statements
Particulars Amount
Sales 35*500 17500
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Less:
Production cost 6+5+2 - 7800
Closing stock: 100*13 - 1300 -6500
Contribution 11000
Less:
Variable sales overhead 500*1 500
Fixed overhead -1800
Selling and administrative cost expenses (800+400) -1200 -3500
Total Profit / Loss 7500
Computation of Net profit by using absorption costing
Income statements
Particulars Amount
Sales 35*500 17500
Less:
Production cost 6+5+2+3 = 16*500
8000 8000
Gross profit 9500
Less:
Variable sales overhead 500*1 500
Selling and administrative cost expenses (800+400) 1200 -1700
Total Profit / Loss 7800
TASK 3
P4. Benefits and limitation of using planning tools
Budget: This sort of tool is being utilised and planned through locating all expenses and
cost so that to keep funds for a longer period of time or to implement future plans (Quinn, 2014).
Budget is being built with the aim of reducing all the money shortages and other risks that are
related to funds that can occur at the time of implementing a plan of an organization. On the
other hand, most of the time this sort of tool is being prepared for almost five years so that to
maintain the sustainability at marketplace for a longer period of time.
Budgetary control: This approach is being utilised, prepared and presented by a manager
of an organisation in order to deliver equal limited resources so that to run business in a
successful manner and for longer period of time. Information is being delivered to employees of
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company so that they do not waste resources or funds and attain all the desired goals and
objectives in much effective an in efficient way. Through this approach ample number of benefits
can be raised through which profitability directly gets enhanced.
Process of budgetary control:
Discuss with managers to make effective strategy: This can be considered as the first step where
manager of firm needs to talk to staff members and then try to coordinate with them because then
only a proper budget can be prepared right on time (Lukka and Vinnari, 2014).
Record the actual performance: Second stage where manager do takes initiatives like
makes determinations and develops strategies when a proper report is being prepared of all the
previous performances of back years. By this only, an appropriate budget is being prepared.
Comparison of actual with the planned: This is the stage where manager monitors the
whole situation and looks into all different aspects and try to compare the actual performances to
planned one.
Determine difference or other variance: Fourth stage where management does appoint
the task to an individual and ask him/her to locate the reasons that why differences took place in
between actual and planned budget. On the other hand, after looking at the whole scenario and
then take initiatives so that to reduce the gap in between planned and actual situation.
Respond immediately: This is the last stage where manager of a company looks at the
steps which has been taken by the individual and then the collected data which is being grabbed
by that person management try to make alterations so that plan can get successfully attained right
on time.
Planning tools which need to be used by Managers:
Forecasting Tools: This tool needs to be taken under consideration in an appropriate sense
because it stay related to all the demands, cost, prices and labor where a manager can control
them. In order to take under this process management needs to develop a proper research plan
and then try to locate all possibilities that can aid organization in attaining all goals and
objectives (Maas, Schaltegger and Crutzen, 2016).
Advantages: Competitive advantages can be gained at marketplace of United Kingdom.
Disadvantages: Decisions are not being taken right every single time which may create
losses for the company.
Scenario analysis tools: Through this sort of tool can be utilized by an organization where it
can look into all uncertainties that are present at marketplace.
Advantages: It aid in planning a module so that to reudce all the risks at workstation and in
environment as well
Disadvantage: Too much expensuve and every singke firn cannot afford it(Klychova and et.
al., 2015).
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Contingency planning tools: As the business condition is mind boggling and unforeseen in
nature so it is essentially required for organization to oversee and screen business exercises
through actualizing powerful emergency course of action. It ensure the association in confronting
any challenges happened in complex circumstances.
Points of interest: It helps in overseeing inordinate weight through limiting expense.
Weaknesses: The business condition is perplexing in nature by which chief discovered
troubles to figure.
There are numerous arranging apparatuses are accessible for Unicorn basic need which have
unmistakable uses on the activities. This likewise helps in readiness and the anticipating of the
financial plans arranged by organization. Distinctive arranging devices which are utilized by the
bookkeeping officer of Unicorn Grocery are incorporates money related arranging, cost
bookkeeping, finance stream investigation, income examination, budgetary control,
administration announcing and so on. There is tint significance of such instruments with respect
to arranging of the diverse capacity of back, administration, cost, costs and so forth. Due to
having its extensive number of employments on the business activities have extraordinary
significance for chief. This improve the capacity of supervisors with respect to arranging about
the future occasions and arrangement of the financial plans based on past records. These devices
helps in ideal usage of their accessible outcomes and infer ideal outcomes. Expansive number of
advantage determined in decrease of the cost and enhance the gainfulness of organization. These
apparatuses likewise helps in assessment of the market powers which have some unfavorable
impact on their tasks and the planning of systems and plans which limit their impact. These
apparatuses likewise contributes ID of the request of clients and fulfill their requirements. This
aides in achievement of their foreordained goals.
There is huge number of commitment of arranging devices in taking care of the budgetary
issues which are looked by Unicorn Grocery. Utilization of money related apparatuses like salary
explanations, money floe, support stream, P&L helps in social event of imperative monetary data
and the issues are related with them. Utilization of such apparatuses contributes in assurance of
the reason of such issues and gives their answer. Such instrument upgrade the basic leadership
capacity so they can adequately embrace appropriate arrangements through capacity perform
successfully.
TASK 4
P5. Various measures to resolve financial problems
In an organisation, the main problem faced by each department is lack of finance through which
functions of them are not done in proper manner. Due to these issues, managers face many
problems in accomplishing the mission of company in a desired manner (Bovens, Goodin and
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Schillemans, 2014). Therefore, marketing and finance managers are required to search sources
from where they can get necessary funds. Through proper finance, employers can adopt latest
tools and techniques to carry all activities in an appropriate way. Some techniques used
by ...Company are:-
Appropriate techniques which is used by manager to avoid financial issues of company:
KPI: It stands for Key Performance Indicator which is generally used to evaluate
performance of business as well as departments in a company. Therefore, employees and
employers are needed to do functions in a proper manner and perform very well. This would help
in completing complex task easily and accomplish mission of organisation in a given period of
time.
Financial governance: This technique is related with certain guidelines and standards
established by government of a country. It would help in running business organisation in a legal
and smooth manner. Thus, managers of a company are required to comply its system with all
legal formalities. Through this process, good of this firm can enhance in a better manner.
Benchmarking: Superiors of associations are required to formulate effective strategies
and unique policies which may become a benchmark for business and help in snatching
competition from other firms. This would support organisation in gaining a high position at
marketplace and attracting minds of customers through its products in a profitable manner. There
are many techniques are used by the management of Unicorn Grocery like KPI and
benchmarking to remove financial issues. This provides opportunity to grow their business
operations and attain sustainability in their performance. Key performance indicators helps in
appraisal of the performance of employees (Armstrong, 2014). This provides chance to company
apply such methods which improves their performance remove financial problems. Similarly,
Benchmarking also one of the important techniques which guide employees to meet out the
specifies criteria which are provide by company.
Difference between two companies:
Unicorn Grocery Zylla company
As it is the large scale company due to which
managers need to monitor and manage issues
carefully.
As the company operates at small level due to
which manager need to evaluate and monitor
issues in appropriate manner.
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The tool which is mostly used by company is
Key Performance Indicator (DIANATI,
Alambeigi and Barzegar, 2016).
SMART tools are preferred by company to
resolve financial issues
CONCLUSION
From above assignment it has been concluded that that, management accounting stays much
enclosed with ample number of accounting elements and approaches that can be taken under in
use in order to handle or to prepare various accounts. Apart from this, all accounting reporting
methods may aid a manager when it comes to prepare a proper plan, decision, risks and so on.
Away with this, many tools of accounting is being taken under in use by officer so that to face all
financial issues in order to run business in successful manner. On the other hand, some
accounting schemes like tactical, presentation and jeopardy administration can be considered in
an effective and efficient manner. With the help of this, all the goals and objectives gets achieve
right on time of a firm.
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REFERENCES
Books and Journals
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performance: The incremental contribution of lean management accounting practices.
Journal of Operations Management. 32(7-8). pp.414-428.
Renz, D.O. and Herman, R.D. eds., 2016. The Jossey-Bass handbook of nonprofit leadership and
management. John Wiley & Sons.
Otley, D., 2016. The contingency theory of management accounting and control: 1980-2014.
Management accounting research. 31. pp.45-62.
P. Tucker, B. and D. Lowe, A., 2014. Practitioners are from Mars; academics are from Venus? An
investigation of the research-practice gap in management accounting. Accounting,
Auditing & Accountability Journal. 27(3). pp.394-425.
Williams, J., 2014. Financial accounting. McGraw-Hill Higher Education.
Eldenburg, L.G., Wolcott, S.K., Chen, L.H. and Cook, G., 2016. Cost management: Measuring,
monitoring, and motivating performance. Wiley Global Education.
Quinn, M., 2014. Stability and change in management accounting over time-A century or so of
evidence from Guinness. Management Accounting Research. 25(1). pp.76-92.
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research. Accounting, Auditing & Accountability Journal. 27(8). pp.1308-1338.
Maas, K., Schaltegger, S. and Crutzen, N., 2016. Integrating corporate sustainability assessment,
management accounting, control, and reporting. Journal of Cleaner Production, 136,
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Klychova, G.S., and et. al., 2015. Management aspects of production cost accounting in horse
breeding. Asian Social Science. 11(11). p.308.
Bovens, M., Goodin, R.E. and Schillemans, T. eds., 2014. The Oxford handbook public
accountability. Oxford University Press.
Armstrong, P., 2014. Limits and possibilities for HRM in an age of management accountancy.
New Perspectives On Human Resource Management op. cit. at, pp.154-166.
Melnyk, S.A., and et. al., 2014. Is performance measurement and management fit for the future?.
Management Accounting Research. 25(2). pp.173-186.
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