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Unit 5 Management Accounting Assignment Help H/508/0489

935 Downloads I Published: 28 May ,2020

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.

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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 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 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 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

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 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).

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 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.

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

  • Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts and practice. Routledge.
  • Fullerton, R.R., Kennedy, F.A. and Widener, S.K., 2014. Lean manufacturing and firm 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.
  • 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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