NSAB530B5 Management Accounting: Systems and Reports - Mont Rose

This report provides an overview of management accounting, focusing on different types of management accounting systems and reporting methods used in business organizations. It covers essential components of management accounting, such as cost accounting, product costing, industry-specific accounting, and trend analysis. Furthermore, the report discusses various types of reports used in management accounting, including budget reports, accounting receivable and segment reports, job cost records, performance reports, and stock and production reports. Each report type is explained with its purpose and application in evaluating business operations and performance. This document is available on Desklib, a platform offering a wide range of study resources for students.

Management
Accounting

Table Of Content
 Introduction
 P1.Management accounting and different type of
management accounting system
 P2.Different reports used in management accounting
reporting
 References

Introduction
Managerial accounting is the form considered as management
accounting in business or organisational culture.
Different type of management accounting reporting and
methods are defined in this presentation.

P1 Management accounting and different
type of management accounting system
Accounting and reporting standards has become vast due to
changing and dynamic nature of business environment
(Abdel-Kader, 2011). Business organisations are adapting
management accounting system with in the organisations
to achieve core competence and efficiency in financial
reporting and accounting.

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Management accounting system focuses on preparing
information and data for the external parties like for an
instance public regulators, stockholders and also lenders.
It is a tracking function of internal cost for any kind of
business process which helps firm or person in making
relevant and better decisions concerned with investment,
production process etc.

Essential requirement of various
management accounting system
There are various type of management accounting systems
are used in organisational context as
Inventory management system
1. Cost accounting system: scope of management
accounting is vast and cost accounting is one of the
branch of management accounting (Bebbington and et.
al., 2014).

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2. Product costing:
This is the accounting system used in factories and
manufacturing industries where the products are prepared
at their initial stage. Product costing helps to identify the
cost incur on direct labour, material and wages.

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3. Industry specific accounting system:
This is the unique accounting system developed for industry
specific accounting. This accounting system is used by
those organisations which are engaged in B to B
operations and activities.

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4. Trend analysis and forecasting:
Analysing the trend and forecasting of future events and
activities are considered in this accounting process and
system. This accounting system remain focused upon
preparing reports and making business decisions in
respect of sustainable growth and development of
organisation.

P2 Different reports used in management
accounting reporting
Management accounting is a vast subject and it is used in
various field as per the suitability of organisations. To
bifurcate and divide the scope of management accounting
there are various type of accounting methods and
techniques invented (Buhr and Gray, 2012).

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 Below are the reports prepared in by the managers and
accountants in organisation:
 Budget reports
 Accounting receivable and segment reports
 Job cost records
 Performance reports
 Stock and production report
 Other reports

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Budget reports
Budgets are the forecasted informations and formats which
provides a possibility of upcoming business activities and
operation. This helps to evaluate the cost of operations
and management for the upcoming years. Not only the
financial foretastes are described in this reports but also
sub cost reports are summarised in a single format.