Management Accounting Systems and Techniques

Accounting 1
Management Accounting

Accounting 2
Slide 1: Introduction
This presentation is designed for facilitating knowledge about management accounting
systems.
The focus of this presentation is also on application of the management accounting
techniques used in different organizations.
This presentation also covers the understanding about principles of management accounting.
Moreover, it provides role and importance of management accounting systems and
management accounting. In addition to this, the presentation emphasizes on usage of different
management accounting techniques for key calculations required for income statement.
It is also helpful in understanding the integration of management accounting in a business
organization. Finally, the presentation is helpful in understanding benefits of different
functions of the organization.
Slide 2: Management Accounting
Management Accounting:
Management accounting can be defined as the branch of accounting and financial
management that deals in study and evaluation of financial data of company in order to
evaluate financial performance of company and also to provide appropriate advice to
company(Blackwood, 2014).Management Accounting deals in identification, analysis,
interpretation and presentation of key accounting information in different organizations.
Management accounting is highly helpful to the managers in companies while taking major
business decisions for the company and while designing organizational policies.
Different Types of Management Accounting Systems:
Example of different management accounting systems involves price optimizing system,
inventory management systems, cost accounting systems and the job costing systems.
One of the applications of management accounting system is measurement of performance.
The performance of employees is done through comparison of actual performance against the
standard performance(Blackwood, 2014).
Management Accounting system is also helpful to the managers in allocation of resources in
different business activities.
Slide 3: Methods of Management Accounting Reporting
Variance Analysis Reports:
Under this method, the variances are calculated and reported by comparison of actual
performance of company against standard or budgeted performance benchmarks. Example of

Accounting 3
different elements, which are taken into account for study are revenue, selling price per unit,
direct labour overheads, direct material overheads, fixed overheads etc(Maheret al., 2012).
Variance analysis reports are highly beneficial to evaluate performance of a company.
Cost Schedules:
Cost schedule is also a major document that is helpful to understand cost schedules associated
with different business expenses in company.
Budgets:
Budgets are also major type of management accounting reports in different organizations.
Different types of budget reports are visible in organizations such as sales budget, marketing
budget, production budget etc(Maher et al., 2012).
Accounts Receivable Ageing Report:
These reports are mainly produced in business for the effective management of receivables in
a company.
Slide 4: Calculation of Costs to Prepare an Income Statement
Slide 5: Income Statement Under Absorption Costing