management accounting assignment

management accounting system assignment1. performance General ledger subdivision reconciles and updates the general ledgers.Objective The main purpose of having reconciliation in an organization is to ensure that the overall accuracy, completeness and consistency of account balance. Narrowly, it is to comp ar accounting entropy that exists in two systems or locations (Reconciliation of Balance saddlery Accounts, n.d.). Jessica (n.d.) also found that reconciliation helped in identifying the misstatement in account records and file. If accountants have successfully found the errors, they must immediately update the adjustment. It is to ensure that the final absolute financial reports accurately represent the financial circumstance of the organization (Jim, S., 2008).Example The accountant in Puspa Footwear Manufacture can agree and reconcile the journal vouchers from live accounting and inventory subsidiary ledgers from inventory control (James A. Hall, 2013).2.Activity Product ion planning and control part determines the somatic and operation requirements with the inventory status report and sales forecast.Objective The main objective of this activity is to get the right metre of materials to the right place at the right term (Vassilis, M., 2000). By having the inventory status report and sales forecast, the management in this department will be informed with the information of reorder point, quantity on hand, quantity on order, and the sales expectation that salesmen want to achieve (Inventory stock status by item report, n.d.) (Forecast and plan your sales, n.d.). Then, this department will determine how much material is required in that batch output signal. It can avoid any wastage of materials indirectly. It is similar as just in time production model which goods are manufacture to meet demand, not manufactured in surplus. (Just-in-time manufacturing, n.d.).Example After understanding the reports from inventory control department and trade depa rtment, production planning control staff in Puspa Footwear Manufacture has decided the types and quantity of material required and sent purchase requisition to suppliers.3.Activity Production planning and control department reviews the bill of materials and route sheet.Objective By reviewing of bill of materials (BOM) and route sheet, these two source documents have provided necessary information to plan the production schedule. The information mainly relates to the time constraints, batch sizes and specification (James A. Hall, 2010). By planning the production schedule, an organization can achieve 3 immemorial goals. It is to avoid the delay in completion of jobs, to well spend the time, and to maximise the utilization of equipment and machine (Production formulation and Scheduling, n.d.).Example In the good example study, it did mention that Production planning and control department gathered and reviewed the bill of materials and route sheet and swotd two copies of product ion schedules to work center and cost accounting department.4.Activity Employee timecard game and job tickets are prepared and sent to payroll department and cost accounting department.Objective The purpose to prepare the time cards and job tickets is to identify the attendance of workers or employees and to determine their wages or salaries. As evidence to the employees formal daily attendance, the payroll department will wont the information in the time cards to decide whether there is bonus or commission to the employees. Besides, the job tickets are sent to cost accounting department to allocate the direct labor puts to work in process accounts. In short, by having these two valid evidences, the fairness to allocate the salaries is enhanced.Example The production workers are required to punch the time card twice per working day (when they are going to work and when the working hour ends).5.Activity Cost accounting department reconciles material usage and labor usage and enume rates variance.Objective The primary objective in this activity is to monitor the current performance in production line via variance analysis. Edwards-Nutton (2008) also defined the variance accounting activity as the evaluation of performance by means of variances, whose timely reporting should maximize the opportunity for managerial action. By interpreting the difference between the actual cost and budgeted cost, the management is able to know the efficiency and volume variances in the material usage variance. This can indirectly help to develop an understanding of the present costs and then to control the future costs. This is a kind of useful prognosticate as well.Example In the case study, the staff in cost accounting department did reconcile the material usage and labor usage and calculate the variance by using the information of move ticket, work order, job ticket, and journal voucher. The staff then updates the WIP account.6.Activity Production planning and control departm ent prepared move tickets.Objective The preparation of move tickets is actually one of the ways to detect and inspect the quality of the intermediates or spare parts of perfect goods. It is to ensure that all the portion of finished goods meet the quota then only can be processed for the next stage. It is also beneficial for the management to prepare the move ticket because this activity can ensure the smooth flow of the production process.Example In producing footwear, there are basically 4 stages. Firstly, the Clicking or Cutting Department will prepare the cutting and size of the footwear. Then the process will be handled by Closing or Machining Department, followed by unchanging Making Department and lastly Finishing Department and the Shoe Room (Shoe Making Process, n.d.). Therefore, between each stage, the personnel in charge are required to inspect the process and authorize it by using move tickets.Edwards-Nutton, S. (2008, March).Standard costing and variance analysis. To pic Gateway Series. RetrievedJuly12, 2014, from http//www.cimaglobal.com/Documents/ImportedDocuments/cid_tg_standard_costing_and_variance_analysis_mar08.pdf.pdfForecast and plan your sales. (n.d.). Retrieved July 12, 2014, from http//www.infoentrepreneurs.org/en/guides/forecast-and-plan-your-sales/Jim, S. (2008, October).General Ledger Review. Reviewing Your Ledger. RetrievedJuly12, 2014, from http//dafis.ucdavis.edu/training/docs/GLReview.pdfJessica, K. (n.d.).How to Reconcile General Ledger Accounts Chron.com. Retrieved July12, 2014, from http//smallbusiness.chron.com/reconcile-general-ledger-accounts-3915.htmlJames A. Hall (2010). Principles of accounting information systems (First Asia Edition), CENGAGE Learning.James A. Hall (2013). Accounting information systems (8th edition), CENGAGE Learning. Production Planning and Scheduling. (n.d.). Retrieved July12, 2014, from http//www.referenceforbusiness.com/management/Or-Pr/Production-Planning-and-Scheduling.htmQuickBooks Support I nventory stock status by item report. (n.d.). RetrievedJuly12, 2014, from http//support.quickbooks.intuit.com/support/pages/inproducthelp/core/qb2k12/contentpackage/core/reports_description_other/rpt_inv_stock_byitem.html?family=proReconciliation of Balance Sheet Accounts. (n.d.). Retrieved July12, 2014. from http//policy.umn.edu/Policies/ pay/Accounting/RECONCILIATION_PROC03.htmVassilis, M. (2000, January). Material requirement planning. Innoregio Project. Retrieved July 12, 2014, from http//www.adi.pt/docs/innoregio_mrp-en.pdfJust-in-time manufacturing (JIT manufacturing). (n.d.). RetrievedJuly12, 2014, from http//whatis.techtarget.com/definition/just-in-time-manufacturing-JIT-manufacturingShoe Making Process. (n.d.). Retrieved from http//www.teonline.com/knowledge-centre/shoe-making-how-shoes-made.html