Management Accounting: Systems, Techniques, and Applications

Management Accounting

Contents
INTRODUCTION...........................................................................................................................................4
PART 1.........................................................................................................................................................4
1.1 Management accounting systems with essential requirements........................................................4
1.2 Methods used form management accounting reports......................................................................6
2.1 Calculate costs using appropriate techniques of cost analysis...........................................................7
2.2 Application of management accounting techniques and produce appropriate financial reporting
documents ............................................................................................................................................11
................................................................................................................................................................... 12
2.3 Accurately apply and interpret data for a range of business...........................................................14
2.4 Calculation of BEP............................................................................................................................17
PART 2.......................................................................................................................................................18
3.1 Explain the advantages and disadvantages of different types of planning tools .............................18
M3 Analyse the use of different planning tools and their application ..................................................20
................................................................................................................................................................... 21
3.2 Prepare a flexible budget.................................................................................................................21
4.1 Compare how organisations are adapting management accounting systems ...............................22
...............................................................................................................................................................24
4.2 How responding to financial problems, management accounting can lead organisations..............25
CONCLUSION.............................................................................................................................................25
REFERENCES..............................................................................................................................................27

INTRODUCTION
Management Accounting is a methodology that is used by administrators of various
corporate organizations to calculate, track, assess, schedule and coordinate their operations in
order to achieve sustainable results. This project's main goal is to improve understanding of
management accounting and its relevance for success in business (Dewi and Wirama, 2019).
This report based on the UCK Furniture which is accounting Consultancy Company and
provides advice to different organization in regard their work, activities and systems. The
company has many clients and innocent drink also take advice from the company to conduct
business activities properly. This task includes numerous aspects including the presentation of
management accounting frameworks and reporting processes, the implementation of a variety of
cost estimation techniques and the use of budgetary analysis of planning resources. It enables
employees acquire different strategies so as to achieve maximum profitability. Furthermore,
various forms of budget can help manage their operations and aim to execute them in the correct
manner. In addition, this study also includes the analysis of how companies use that to address
the following issues.
PART 1
1.1 Management accounting systems with essential requirements
Management Accounting: It can be understood as the method that helps employees
identify, analyze, track, evaluate and predict the corporation's output in order to obtain maximum
profits in the long run. With the aid of this, internal users evaluate whether or not the team is
operating very well shape business choices for the future period. In UCK furniture, managers
perform management accounting on a daily basis so that they can know the true state of the
company. It also directs managers at the highest level in evaluating whether or not businesses are
able to achieve planned income (Garasyim and et.al, 2020).
Management accounting system: It directs interested parties to assess shareholder value
that can help boost business efficiency. In UCK furniture, administrators use them to keep a
record with each and every company operation in order to minimize the risk of current
opportunities. Various systems which UCK furniture management use are as described in the
following:

Price optimization system: Many businesses use this system to set reasonable prices for
their goods in order to draw large numbers of consumers into the company. In UCK furniture
top-level executives use it to fulfill consumer needs by fixing the most appropriate rates for the
Smoothies sold to them. They also strive to achieve some profit and revenue optimization in the
long-term company goals with the aid of it. It is essential require for the organization because it
can allow management to determine consumer reaction to various price points provided by the
employer for their goods.
Job order costing system: All the company organizations conduct various tasks and the
costing system for job orders is used to document all of them. Activities may be divided by their
rank, with the aid of it. In UCK furniture executives are using it to keep track records of various
procedures which are performed as per various client requirements. It's really useful for the
organisation since it can direct the managers to calculate costs differently by each and almost
every task. The essential requirement of this system manager can determine the productivity of
all operations and recognize certain workers that are not organizationally productive in order to
attain greater profits in future (Giorgino, Barnabè and Kunc, 2020).
Cost accounting system: This is the method which the company uses to monitor the
amount caused in the production market of products. Only with aid of it supervisors are able to
identify the cost from each and every unit their business manufactures. Organizations utilize it in
UCK furniture to calculate the costs associated with various cars built by the company. It also
assists them in allocating funds as per their needs to all agencies. The essential requirement to
institution's management teams as it allows them predict real manufacturing costs and company
profit-generating capacity.
Inventory management system: It is used mostly in design and construction
organizations as it lets executives keep a close eye on stock that is used for business processes.
Management uses UCK furniture to monitor their stocks and assess that the company has ample
inventory to perform organizational and executive operations in a consistent way. It directs
companies to assess the storage, warehouse or distribution of goods to customers. There are 3
major types of inventory management systems that businesses may follow to suit their
preferences.

1.2 Methods used form management accounting reports
Management accounting report: It is the method of documenting all the financial
records in contrast to the different customers for the internal customers. Within this process
manager produces various report types that make the business assess organizational or
operational research and develop plan to ensure goals and business objectives. Managers use
various monitoring techniques in UCK furniture to assess the company's internal results.
Accounts receivable aging report: This report contains unpaid invoices, which will be
organized according to the year. It can be used for those companies that deal extensively with the
credit period, so they have to establish account receivable report although all borrowers are
really hard to remember. Company rapidly recognizes the defaulters who have not yet paid their
receipts, with the help of this report. Management utilizes this current obligation at UCK
furniture to classify their lenders and overall defaulters (Godil, Kashif and Sarwat, 2019).
Cost management accounting report: This report contains the cost of each item needed
for manufacture. It covers the cost of the projected materials, labor and other overhead costs.
Since it can build more strategy with the aid of this manager to will each unit value of the item.
Drop the costs go up competition and also profitability and then further leads to the corporation's
improved selling price. In UCK furniture, director analyses all practices and reduces undesirable
practices that do not yield any kind of benefit
Performance report: This study covers both individual results as well as organization.
Now this results will be measured on a yearly basis and it will enable the management must
make their future financial decision. UCK furniture' manager analyses the work performance as
well as how to execute the expenditure to achieve their mission. With the aid of this study,
managers adopt different plans and make strategic decisions that help achieve business goals and
priorities. In addition, it enhance the probability of monetary incentives that the management has
determined according to their success (Holm and Ax, 2020).
Budget report: This report also called the internal document that the upper executive
uses to measure the organization’s income or expenditures. It also assists in evaluating the
organizational functions efficiency. Executive contrasts the company's real output with that
expected in the fiscal quarter. The management examines the effectiveness in the light of UCK