AAF001-6 FINANCIAL ANALYSIS ASSESSMENT 2 INDIVIDUAL REPORT MANAGEMENT ACCOUNTING FOR “ASDA” Written and Submitted by: NAME – Saikat Panja Student ID - 1223846 SUBMISSION DATE: Monday 23RD JANUARY 2015 Table of Contents Page Number Introduction 3 Nature and Role of Management Accounting 4 Management Accounting Techniques to be Used 5 Strengths and Weakness 7 References 8 Introduction ASDA is the subsidiary of WalMart, who is the retail giant in the world. ASDA retail store is mainly based on foods, clothing, and toys for children, general items, mobile phone networks, financial services and oil pumps. But I chose this company apart from the fact that it is UK’s biggest retail chain. Now people …show more content…
In Financial Accounting accountants prepare only the annual finance statement of any organization and shows if the organization is going in profit or loss. But in Management Accounting the managers have to take the future decisions and steps by looking at the past financial statements. So Management Accounting is very important because one wrong decision can transfer the organizations path or the future. Management Accountants have a responsibility to moral qualities which has to be kept intact by using their various skills, which will ultimately help the shareholders of any organization to retain profits earned from the money invested. Strategy formation by executing plans, budgeting and forecasting, risk management and decision making all these are required as skills in Management Accounting. In Management Accounting a manager has to have knowledge on both the financial and non-financial terms of the business and operational sides of the business. Both the financial and non-financial items are reported and analyzed by the managers to come to any decision. Again, the corporate social performance is also analyzed and a report is made on that. They have to take care of the other points also, i. e, profit of the organization, the final and end users, i. e ,customers and their satisfaction levels, employees of the organization, environmental matters related to the …show more content…
(2015). 4 Activity Based Cost Systems for Management. [Online] Academia.edu. Available at: http://www.academia.edu/3882382/4_Activity_Based_Cost_Systems_for_Management [Accessed 23 Jan. 2015]. • BUSINESSDICTIONARY.COM What is management accounting? Definition and meaning In-text: (BusinessDictionary.com, 2015) Bibliography: BusinessDictionary.com, (2015). What is management accounting? Definition and meaning. [Online] Available at: http://www.businessdictionary.com/definition/management-accounting.html [Accessed 23 Jan. 2015]. • CONFINO, J. Asda: 95% of our fresh produce is already at risk from climate change In-text: (Confino, 2014) Bibliography: Confino, J. (2014). Asda: 95% of our fresh produce is already at risk from climate change. [Online] the Guardian. Available at: http://www.theguardian.com/sustainable-business/asda-food-waste-risk-climate-change [Accessed 23 Jan. 2015]. • LAWSON, A. Analysis: Is Asda’s five-year strategy the right one? In-text: (Lawson, 2013) Bibliography: Lawson, A. (2013). Analysis: Is Asda’s five-year strategy the right one?. [Online] Retail-week.com. Available at: http://www.retail-week.com/sectors/food/analysis-is-asdas-five-year-strategy-the-right-one/5054989.article [Accessed 23 Jan.
[3] Robert S. Kaplan and Steven R. Anderson, Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to Higher Profits, Harvard Business Publishing, Boston, Mass., 2007.
Management accounting in organisation is very important for decision-making and to make the business more efficient and therefore increasing its profits. Is the process of preparing accounts that can help managers to make day-to-day and short-term decisions, by providing them with accurate and timely key financial and statistical information...
Roybal, H., Baxendale, S.J., and Gupta, M., (1999), “Using Activity-Based Costing and Theory of Constraints to Guide
LongPest Analysis of ASDA Superstores Introduction ASDA, is the Britain's best value food and clothing superstore, and became part of the Wal-Mart family on 26 July 1999. Wal-Mart stores, Inc are the world's largest retailer, with $191 billion in sales in the fiscal year ending 31 January 2001. The company employs more than 1 million associates worldwide through nearly 3,500 facilities in the US and more than 1,000 units in Mexico, Puerto Rico, Canada, Argentina, Brazil, China, Korea, Germany and the UK. More than 100 million customers per week visit Wal-Mart Stores. ASDA is a private sector organisation, and before Wal-Mart took over ASDA, ASDA Stores were only based in the local and national parts of UK.
"College Accounting Coach." Process Costing-Definitions And Features(Part1) « Process Costing « Cost Accounting «. Feb. 2007. Web
Managerial accounting, also known as cost accounting, is defined by the textbook as the phase of accounting that is related to providing information to managers for use within the organization (Noreen, Brewer, & Garrison, 2014, p. 19). Managerial accounting information is aimed at helping managers within the organization make sound business decisions. On the other hand, financial accounting is focused on providing information to individuals outside the organization. Managers rely on cost accounting to provide them with an idea of the actual expenses related to processes, departments, operations or products which are the basis of their budget procedures. This information allows them to analyze variations to determine the best method of
Accounting is basically a service activity. Its purpose is to provide quantitative information that principally used by the managers, investors, tax authorities, and other decision makers to make the financial decisions within companies, organizations, and public agencies. Accounting is also widely known as the “language of business.” An accountant measures, communicates, and interprets financial activities. They prepare financial statements or reports for individuals, businesses, government agencies, or other non-profit organizations. They use the accounting systems to categorize the expenses and income to the typical groups. They also keep tract of the money received or paid out to see if the transactions are accurate and complete. Accountants are familiar with the computer operation. They use the computer...
There are so many different types of organizations in today’s business environment: retailers, government organizations, public companies, manufactures, service companies, and non-for-profit organizations. Despite differences in business structure, financial operations, tax regulations, and company size, managerial accounting should be an integral part of the management process.
Activity-Based Costing ( ABC ) Summary The business environment in the 1990s is markedly different from that of the past when conventional cost accounting procedures were established. Activity-based costing (ABC), pioneered in the late 1980s, offered a new costing approach consistent with the changed environment. However, ABC did not diffuse rapidly into the business community.
When I think of a financial manager, accountant quickly comes to mind. The role of accountant and financial manager are similar in several ways and often times they work closely together on various projects. The role of an Accountant is to ensure that their organization is run efficiently, make sure their records are accurate, and that their taxes are paid properly and on time. Accountants perform a broad range of accounting, auditing, tax, and consulting activities for their clients. They record and analyze the financial information of the companies for which they work. Other responsibilities include budgeting, performance evaluation, cost management, and asset management. “The role of the financial manager has expanded beyond traditional responsibilities related to company's finances. A financial manager, through his/her understanding of the company's financial health, the current market, and the goals of the company, helps set direction and guides decision making.” Financial managers perform several different task related to finance for their organization they normally oversee the preparation of financial reports, direct investment activities, and implement cash management strategies.
S. Bragg. (2010, June 7). What is responsibility accounting? definition and meaning. Retrieved from www.accountingtools.com/: http://www.accountingtools.com/questions-and-answers/what-is-responsibility-accounting.html
Activity-based costing is used as a supplement of traditional cost accounting in a company to support manager in internal decision making. It focus on assigning the indirect cost to direct costs in order to get a more accurate cost on products. Activity-based costing uses several cost pools instead of one in traditional cost accounting. The system is easy to implement and it provides many benefits, it allows the company to respond to inefficiency by reallocating resources to more profitable activity from areas that absorb too many resources. It also allows the company to respond to manufacturing overhead cost and assumes a more accurate selling price on products in order to make more profits. Company that do not have internal expertise to conduct activity-based costing analysis may think to hire one or ask company that provides this kind of services for help.
An accountant makes sure that the Nation’s firms are run efficiently, the public records are kept accurately, and that taxes are paid properly and on time (“Accountants and Auditors”). Accounting is the study of how a business tracks their income, assets, expenses, and many other things for a period of time. They also do many other things like quality management, tax strategy, and health care benefits management (“Welcome to Careers in Accounting”). An accountant is crucial to the success of a business, without one the business tends to fail.
Accounting is a very important term to our modern society. It is the career for men and women who at the start have their eyes set on top positions in industry, management, government, and general business. Accounting is a basic need of every businessman, from the operator of a filling station to the government of the United States. It's so important to our society. None of the business organization can operate without is. They are there-somewhere-in every business. In small business, people use pen, ink and skill keep the records. In large business, modern accounting machines are used to operate. Men and women are directing these machines in the accounting process. Wise businessmen enter business must have some accounting knowledge.
It is impossible to run an organization or to make sound investment decisions without accurate, timely financial information; it’s the accounting professional who prepares this information. More important, accounting gives the meaning of financial information to individuals or organizations to help them use financial information to deal with business problems. Getting numbers is the easy part of accounting, particularly since the introduction of the computer. The hard part is analyzing, interpreting, and reporting