Management Accounting Systems And Techniques

DO WANT TO HIRE TUTOR FOR MANAGEMENT ACCOUNTING ASSIGNMENT SOLUTION? AVAIL QUALITY MANAGEMENT ACCOUNTING SYSTEMS AND TECHNIQUES ASSIGNMENT WRITING SERVICE AT BEST RATES!

Introduction: This report consist of the different elements of the management accounting will be tested and explained. Some of the aspects which will be assessed in this report are definition of this accounting system, its scope in the organisation and many other aspects like these. Also, the benefits and other aspects of different techniques of management accounting will be assessed.

Question 1: Define management accounting and discuss the role of a management accountant in an organisation.

Answer: Definition Of Management Accounting: Management accounting is a set of tools and techniques which are used by the management of the business to use the different information which is available to it for improving different functions of the business like planning, control and its decision-making process (Kaplan and Atkinson, 2015).

There are different management accounting information systems, and each has different essential requirements which are needed to be fulfilled to be effective for the business.

The first management accounting information system is cost accounting system, and some of the essential requirements are stated below.

• Effective purchasing system of the organisation

• Effective storage system of the organisation

• Issue of the inventory from the store in a systematic manner

• Coordination between purchasing, storage, manufacturing and other areas of the organisation.

The second management accounting information system is the inventory management system, and some of the essential requirements are stated below.

• Effective purchasing decision of the organisation

• Appropriate inventory valuation system

• Proper controlling and monitoring the different inventory-related cost of the organisation like ordering cost or storage cost

The third management accounting information system is the price optimisation system, and some of the essential requirements are stated below.

• Proper use of demand and price data for assessing how the demand and profitability of the products change in different pricing level of the inventory

• Alignment of historical costing data and current cost data to understand the relationship of different cost behaviour of the different cost of the organisation.

Discussion On The Role Of A Management Accountant In An Organisation

The role of the management accountant in an organisation can be divided into five parts, and these roles have been stated in the following section.

• Costing - The first role is an analysis of different cost behaviour and assessing how the change in those costs can affect the profitability of the business.

• Planning - The second role is in the planning as it allocation the resources of the organisation among different activities of the business and also set the long term and short term objectives of the business.

• Control - The third role is to control different cost and activities of the business to increase the efficiency in the overall organisation.

• Decision making - The fourth role of the management accountant is to make different decision in the organisation which will increase the efficiency of the business.

• Performance evaluation - The fifth role is to evaluate the performance of the different departments of the firm.

GET ASSURED A++ GRADE IN EACH MANAGEMENT ACCOUNTING SYSTEMS AND TECHNIQUES ASSIGNMENT ORDER – ORDER FOR ORIGINALLY WRITTEN SOLUTIONS!

Question 2: Demonstrate in detail the scope of the role of management accounting and the part it plays within each function of the business.

Answer: The scope of the role of the management accounting is quite significant in five different functions of the business, and these roles will be discussed in detail in the below.

• Planning - Planning is the first business function in which the management accounting plays a vital role in through different methods like creating short term budgets of the organisation or planning strategic direction of the organisation.

• Decision-making process - Decision-making process is the second business function in which management accounting plays a vital role at different levels which is operational, tactical and strategic. In operational level, it helps the management makes the different daily decision in its operation. In tactical level, it helps the management formulate different control measures in the organisation. In the strategic level, it helps the business decides its strategic goals in the long term and short term. It also helps to align the decision-making process of different departments of the organisation.

• Control - Control is the third function which the management accounting has a vital role is to control as it not only helps to formulate the control measures but also help the management monitors the activities of the business through these measures and control the different aspects of the organisation (Yourfuture.accaglobal.com, 2019).

• Internal Auditing - It also helps in internal auditing of different aspects of the organisation by verifying different documents and reports of different processes.

Question 3: Examine the key differences between a management accountant and financial accountant whilst at the same time exploring any areas where the two disciplines may overlap.

Answer: There are mainly three areas or aspects in which forms the key differences between management accountant and financial accountant and these areas will be discussed in the following section.

• Users of Reports - The first difference is that the main users of the reports prepared by management accountant are the management or employees of the company whereas the main users of the reports prepared by financial accountants are made for different stakeholders of the business especially the investors of the business.

• Regulatory compliance - The second areas which form the difference between the two is regulatory compliance as the financial accountants have to make its reports according to different statutory requirements, but in the case of management accountant, there is no such requirement.

• Data - The third areas which form difference between the two is the data which the two deals with as in the case of the financial accountant, it deals with the historical financial data of the organisation whereas the management accountant deals with both historical and forecasted data (Key Differences, 2019).
Some of the areas in which the role of management accountant and financial accountant are similar are stated below.

• Financial information - Both financial accountant and management accountant deal with the financial information of the organisation.

• Auditing - Both also involved in the auditing process of the business as the financial accountant deals with the external or statutory auditing process by preparation of the financial statements of the organisation whereas the management accountant deals with the internal auditing process of the organisation (Richardson, 2017).

Question 4: a. Examine the different types of cost reports that are produced in management accounting, highlighting the differences between each type of cost reporting and evaluating the benefits of each report.

Answer: The cost reports of different kind are prepared by the management accounting, which has the method of preparation and benefit of it, and these aspects will be discussed in the following section.

Job Costing - Job costing reports is a cost report that assigns the different cost of the business to a particular order or job of the business. The difference of this cost report from the other cost report is that its purpose is to assess the actual cost of a particular order or job fulfilment for the business. This report assists the business in formulating effective pricing and cost of each job or order (Zahller, 2017).

Batch costing - Under this type of cost report, the different costs of the business are allocated to the different batches of production of the business. Although, this cost report is to an extent same as the job costing, but the point of difference is that it does not allocate cost to different orders but batches of production which may belong to different customers. This cost report is useful for assessing the proportion of cost of different batches of production is incurring for the business (Bragg, 2019).

Inventory costing - Inventory costing reports are those reports which assess different cost which is incurred by the business due to inventory of the business. The inventory costing point of difference from other cost report is that it assist the business reduce the expense of stock of inventory of the business in different ways. Some of the ways are reducing holding the cost of inventory by assessing the reordering level of inventory which will fulfil all requirements of the business and lower the time in which the inventory of the business will stay in business or by reducing the response time of the procurement of the inventory. This cost report is useful for reducing the expense of inventory in a business significantly.

Activity based costing - Under this report, different indirect cost of the business are assigned to different product and services of the business in an effective way by the use of identifying the cost driver of that cost and use it for allocation of that cost. This cost report analyses the different types of cost of the business as the direct cost are analysed to assess its relationship with indirect cost as sometimes direct cost are cost driver of the indirect cost. Also the indirect costs are analysed to understand its cost behaviour of these indirect costs and what its cost drivers are. It also analyses the semi-variable cost by assessing the proportion of the fixed cost and variable cost in it and the cost drivers of these costs.

The difference between this cost reports from others is that it focuses on the allocation of indirect cost only. The benefit of this cost report is that it increases the effectiveness of cost allocation among different products and services of the business, which increase the efficiency in the decision-making process of the business (Investopedia, 2019).

MOST RELIABLE AND TRUSTWORTHY MANAGEMENT ACCOUNTING SYSTEMS AND TECHNIQUES ASSIGNMENT HELP & HOMEWORK WRITING SERVICES AT YOUR DOORSTEPS!

b. Explore other types of reports that may be produced by management accountants and evaluate the benefitsto a business of these different types of report, including adding value to the organisation and how these feed into the achievement of organisational objectives.

Answer: There are some of the other reports which are made by the management accountants than the cost reports, and these other reports will be discussed in the following section.

• Performance report - The purpose of this report is to assess the performance of the different departments of the organisation against the different criteria. This report adds value to the organisation and helps in achievement of the different organisation objectives by assessing whether the different department has been able to fulfil the different tasks allocated to it which will help the organisation fulfil its strategic goals (Maas and Verdoorn, 2017).

• Debtors Aging report - This purpose of this report is to assess the proportion of periods to the debtors for fulfilling its financial obligation toward the business. This report adds value to the organisation by helping the management asses which receivables of the business are showing sign of becoming bad debt, and this makes the receivable management more effective as proper action are taken by the business according to this report result. This helps the organisation achieve its objectives by reducing the bad debt in the organisation and increasing financial capabilities of the business (Complete Controller, 2019).

• Budget report - This report is made to allocate the resources of the business among different activities of the business effectively. This benefit of this report is that it betters the utilisation of resources of the business (My Accounting Course, 2019). This report added value to the organisation and help it achieve the organisational objective by the effective allocation of limited resources of the business in such a way that different departments are financially capable of fulfilling the goals of the business.

Question 5: Calculate and produce an income statement using both marginal and absorption costing techniques using figures of your own making. Provide a written text to explain why an organisation may use one technique over another.

Answer:

The reasons for choosing marginal cost over absorption costing by the organisation is that under this method only those cost which happened only due to the producing the inventory of the business in the closing stock valuation of inventory and fixed cost which incurred in the business irrespective of whether those units of inventory are produced or not are disregarded. This makes the assessment of cost more effective for the business, and this is the reason for choosing this technique over absorption. The reasons for choosing absorption cost over marginal costing by the organisation when they want to the overall production cost of the business.

SAVE DISTINCTION MARKS IN EACH MANAGEMENT ACCOUNTING SYSTEMS AND TECHNIQUES ASSIGNMENT WHICH IS WRITTEN BY OUR PROFESSIONAL WRITER!

Question 6: Produce a worked example of how break-even analysis works and provide a written explanation as to why break-even analysis is important to the organisation.

Answer:

The reasons for which the breakeven analysis become significant for the organisation are stated below.

• It helps to assess the minimum level of the units that the business has to sell to recover all cost of the business.

• It also helps to assess the sales target that the business should set for its future period.

• It also helps the business assess the relationship between different cost and the profitability of the business (Your Article Library, 2019).

Question 7: Show a worked example of net profit calculation and provide an explanationas to why net profit calculation is important to role of the management accountant and how this calculation is used within the organisation to drive other organisational objectives. For example, investment decisions.

Answer:

The reasons for which Net Profit calculation is important for the organisation are stated below.

• This calculation helps the business assess the total expense proportion among the total revenue of the business.

• This calculation also helps the business asses the profitability of the business.

• This calculation helps the business assess the financial capability of the business.

This calculation also helps the business in its different organisation decisions in different ways. For example, the investment decision of the business is decided by this calculation as this calculation help the business understand the financial resource it has to finance its investment plans. Another aspect which this calculation helps with increasing the efficiency of the business by assessing which cost should reduce and which are the strong point of the business in cost efficiency.

Conclusion: The different aspects of management accounting had been analysed and described in this report . From this analysis of the different aspects, it has been observed that this accounting discipline has a significant function in different functions of the organisation like planning or control. It has also been assessed that different reports and techniques under this discipline helped the business in different ways achieve its organisational objectives.

GET GUARANTEED SATISFACTION OR MONEY BACK UNDER MANAGEMENT ACCOUNTING SYSTEMS AND TECHNIQUES ASSIGNMENT HELP SERVICES OF EXPERTSMINDS.COM – ORDER TODAY NEW COPY OF THIS ASSIGNMENT!