Case Study on Management Accounting Report

Added on - 21 Jul 2020

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MANAGEMENTACCOUNTING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1PART A...........................................................................................................................................1Management accounting.............................................................................................................1Distinction between management and financial accounting.......................................................2Management accounting systems................................................................................................2Role of management accounting.................................................................................................3Benefits of management accounting system...............................................................................4Types of commonly produced management accounting reports.................................................4The way management accounting system and reporting can be integrated................................5PART B............................................................................................................................................5CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................7
INTRODUCTIONManagement accountingis a concept used to demonstrate managerial skills andknowledge in organisational context.This assignment describes the meaning of managementaccounting and its principles. This is divided in two parts. First part explains the definition ofmanagement accounting, management accounting system and role of management accounting(Meaning of managerial account, 2017). Second part defines the portfolio to completecalculation of inventory valuation. There are inventory valuation methods such as FIFO, LIFOand AVCO defined as per the practical scenario.PART AManagement accountingThere are various definitions and assumptions given by the authors and writers in respectof management accounting. As per the definition given by institute of management accountants(IMA), management accounting is a profession which remains associated with managementdecision making and planning (Hasniza Haron and et. al., 2013). This is considered as theperformance management system to lead operations and management of organisation.Management accounting is the combination of multiple rules, legislations and principles.Management accounting is also called as managerial accounting which helps themanagement level to make decisions and policies for effective management and operations.American Institute of Certified Public Accountants bifurcated the management accounting inthree major areas such as:Strategic managementThis is one of the essential elements that plays a vital role in decision making process. Ithelps to ascertain the best fit strategies and plans for effective operations.Performance managementAnalysing the performance of staff members and employees subjected to organisationalgoals are evaluated in this structure. Emerging the skills and practices of decision making toenhance performance of employees is the main objective of performance management.Risk managementThis helps to put efforts to framework and practices for identifying, evaluating andreporting risks to attain the objectives of organisation.1
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