Management Accounting and UCK Group

This assignment analyzes the role of management accounting in helping UCK Group achieve its business objectives. It focuses on the importance of inventory management reports, demonstrating how they contribute to stock valuation and effective decision-making. The analysis concludes that a robust accounting system and reporting are crucial for UCK Group's success.

Management Accounting
Project 1

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
1.1:Different types of accounting systems..................................................................................1
1.2: Several types of reporting system which has been use in an organisation .........................3
1.3: Different advantages of using management accounting system .........................................4
1.4: Critical evaluation of accounting system report within an organisation .............................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
In the context of fast growing market there are various issues arises in an organisation
those are related with financial management transactions. In every business whether working in
manufacturing or retail sector need to be use best accounting systems so that they can record
their everyday transactions in effective manner. By the help of this, managers would be able to
generate more reliable outcomes in order to increase profitability of “UCK Group” during the
time. This project provide crucial information about different types of accounting systems and
reporting use in an organisation. Certain benefits of accounting system and critical evaluation of
various reporting techniques use in UCK business (Quattrone, 2016).
TASK
1.1:Different types of accounting systems
Nowadays, it has been observed that plenty of profit motive organisations are working for
the purpose of increasing overall performances of the company. The primary motive of every
department is to make use of their financial resources in order to attain long and short term aims
and objectives. Every information collected from department are having certain crucial factors
those are useful in evaluating overall performance as well as efficiency of UCK group of the
company. To develop an new products, it is necessary to make use of raw material to become a
complete finish products through using various process through using accounting systems in
more effective manner. It is essential to make use necessary information to determine overall
knowledge whether it is profitable for the company in long run (Gates, Nicolas and Walker,
2012).
UCK group uses various accounting techniques for the objective of collecting,
communicating, recording and evaluating data in order to attain better outcomes. Accounts are
mainly formulate by using crucial information from various departments and posted it into
different formats through following necessary guidelines and standards applicable in that
particular nation. Apart from this, formulation of accounting reports, a company need to have
complete looks over international accounting regulation which are being followed in an
organisation. In order to manage their data as per the mentioned financial information of the
company necessary outcomes would be identified accordingly. It has been found that there is
certain specific comparison among management accounting and financial data.
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It is mostly related with collection, recording of accounting informations, whether
financial data should make impacts over the overall financial performance of an organisation. In
case of financial accounting, the performance and their overall stability can be determine by
making proper analysis and evaluation of financial position of the company. This must be
evaluated through using various aspects such as ratios analysis and cash flows statements
interpretation. Management always looks to ascertain internal growth and efficiency of every
departments for the purpose of taking some sort of effective decision regarding upcoming project
plans. These all are crucial aspects for the company, as all necessary information related with the
company are taken and handed over to investors and other stakeholders to make capital
investments decisions. In order to maintain proper record of data company could use various
types of accounting systems. Some of them are discuss underneath:
Cost accounting system: A well organise cost accounting tools can assist a managers to
estimate total cost incur by company for the purpose of producing products and services. There
are various effective functions of cost accounting systems which consists of management
regulations and cost control, valuation of stock and analysis of gains collected during the time
(Cost accounting, 2018). There are mainly two types of cost accounting that is being used to
record total cost related with absorption and marginal costing. UCK group of company can make
of absorption costing for the motive of formulating cost sheet to record data.
Inventory management system: It is said to be an effective control system which is
being use for the purpose of recording information of total cost and total quality of stock kept by
the company. It has been found that stock mainly consists of raw material, work in progress and
complete products. By the help of this accounting systems one can take care of their total stocks
position that use to provide minimum, maximum and normal stock position of the company.
Price optimisation system: As per this accounting system which is use as mathematical
analysis of collected statistical informations. It is used in an organisation to predict overall
perception of client regarding various prices of products which has been offered by UCK group.
This particular system is more reliable to determine total attitude and behaviour of customers
about demand pattern for their furnitures goods. This particular system would assist lot in taking
valuable decision to pricing policies of products (Suomala and Lyly-Yrjänäinen, 2012).
Job costing system: Accounting to this systems, overall costs of manufacturing a
products can be determine by an individual products or lot size of goods. Such types of costing is
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mainly applicable in case products develop are not identical to every other products. This must
be related with daily routine with relation to collect information on overall costs of a specific
department for work exercise (Ratnatunga and Alam, 2011).
1.2: Several types of reporting system which has been use in an organisation
In order to make proper evaluation of company's performances, managers of UCK group
need to make use of financial transaction in an effective manner. In order to record all effective
information in order to manage their everyday business transaction in more reliable and effective
manner. A well effective reporting systems would assists in proper utilisation of resources that
are being use by company to determine overall performance of company during an accounting
period of time. A reports are usually use in order to analyse total gains or losses incur by
company during the time or whether resources are utilise during the time. It has been determine
as more reliable and effective reporting system to take valuable decision in order to attain their
upcoming gains for the company (van Helden and Uddin, 2016).
The will be useful in respect to evaluate overall current position of company to make
future investments in further planning. It is mostly related to gain competitive advantages over
other company's. In case of UCK Group, managers use to conduct their internal operations in
more reliable manner through using detail and systematic data of the company. Reports are said
to be detail information which is being prepare by using various information through different
sources. All necessary data would be transfer to their respective format for the purpose of
preparing financial position of the company. There are various types of accounting system
reporting which are being use for UCK furnitures in their daily course of operations. Some of
them are elaborated below:
Inventory management report: Such kind of reports are mainly done in order to control
and maintain overall control of overall stocks that are kept by the company during the time.
There are various techniques which will be effective to control and manager their overall record
of inventories. This can be use in particular period of time to make proper information about
their opening and closing stock of the company. Some crucial stock valuation techniques are
ABC costing and order quantity measurement (Wynn, Low and Nauta, 2013).
Account receivable reports: These kind of reports are prepare through collected crucial
data in order to determine total lists of all customers invoices that remain unpaid for longer
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period of time. These are said to be legal enforceable claims for making payment for the purpose
of keeping business more safe and secure.
Job cost report: It is said to be specific report which is being crucial aspects for making
proper valuation of data through regulating current position of a job and to evaluate total time
they are required to finish a task.
Performance report: It is more effective done by company to use previous data in order
to evaluate present year performances. This is mainly done to examine whether a company is
able to perform well in respect to generate better results during an accounting period of time.
Mainly, these reports are mainly helpful to analyse actual position of the company in respect to
other companies (Sisaye and Birnberg, 2012).
1.3: Different advantages of using management accounting system
Management looks for better resources that are helpful to UCK group in order to attain
their overall growth and market share. For this purpose, they uses management accounting
systems to record crucial data in their respective format. These can be helpful to manage and
evaluate their overall outcomes for company in future along with increasing performances of the
company. It is said to be utmost important needs for some industry to have identification of
turnover and profit those are said to be beyond the limitation.
Accounting systems Benefits
Inventory management
system
 By the use of this, proper accuracy of inventory valuation of
total inventories can be done in more effective manner.
 This will in enhance productivity of the company and also
control extra time and costs.
Job costing system  Through the help of this accounting system, UCK group
would be able to attain and examine total costs of producing
single as well as group of products during the time.
 Though this total check on overall quality of work done can
easily be done. It is mostly related with an individual jobs.
Price optimisation
system
 By the use of this particular system, managers can easily be
able to analyse overall perception of customers about
company products and services.
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 This will be helpful in attaining total profitability in their
operations and consider best suitable cost of a products.
Cost accounting system  This specific system will assist in evaluating total costs of
production done during the time. By the help of this, a
company can bring proper efficiency their working and
control of costs in well organise manner. This will reflect
overall pricing of their products.
1.4: Critical evaluation of accounting system report within an organisation
According to the above mentioned reports, it is necessary to determine total possible
outcomes which can be easily be manage and control their every business transactions those are
being done in an accounting period of time. The primary objectives is to analyse overall stock
valuation which are related with performance as well as that make impacts on total ratios that
examine stability position of the company. In the works of Dumitru and et. al., (2011), it deal
with all those aspects related with reporting tools can be helpful in order to make crucial plan for
upcoming estimations. Some of them are discuss underneath:
Accounting report analysis:
Budget reporting is more reliable and effective ways to analyse combination of different
organisational process that are related with organisational process related to UCK Ltd. They need
to make prior estimation of total costs and expenses that are going to be incur in a financial year.
Account receivable report: These kind of reports are one of the vital record that is
helpful to UCK Group to analyse total recovery time for their overdue payments. Through this
on time delivering of payment can be collected during the time.
Performance report: Under this, valuation of performance is being done or record on
regular basis. This can be done to determine plans for the betterment of UCK business in
accordance to an organisation. This report can be use to analyse current position of the company.
Job cost report: These activities of UCK group would be guided towards evaluating
total costs control which is being measure through determining proper set of pricing plan.
Through this, overall costs of an organisation can be easily be calculated during the time.
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Inventory management reports: such kind of reports are mostly helpful to detect total
stock valuation that is being kept by company during the time. Such kind or reporting
techniques can provide more effective results to UCK group during the time.
CONCLUSION
From the above project report, it has been concluded that management accounting is an
essential aspects which will be helpful to attain overall opportunities for the company. This can
only be beneficial in case they would have sufficient amount of accounting system and reporting
that can help to record various financial transactions of an organisations. All data collected
during the time are evaluated in more positive ways to get better outcomes in coming time.
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REFERENCES
Books and Journals:
Quattrone, P., 2016. Management accounting goes digital: Will the move make it wiser?.
Management Accounting Research. 31. pp.118-122.
Gates, S., Nicolas, J. L. and Walker, P. L., 2012. Enterprise risk management: A process for
enhanced management and improved performance. Management accounting quarterly.
13(3). pp.28-38.
Suomala, P. and Lyly-Yrjänäinen, J., 2012. Management accounting research in practice:
Lessons learned from an interventionist approach. Routledge.
Ratnatunga, J. and Alam, M., 2011. Strategic governance and management accounting: Evidence
from a case study. Abacus. 47(3). pp.343-382.
van Helden, J. and Uddin, S., 2016. Public sector management accounting in emerging
economies: A literature review. Critical Perspectives on Accounting. 41. pp.34-62.
Wynn, M. T., Low, W. Z. and Nauta, W., 2013, January. A framework for cost-aware process
management: generation of accurate and timely management accounting cost reports. In
Proceedings of the Ninth Asia-Pacific Conference on Conceptual Modelling-Volume
143 (pp. 79-88). Australian Computer Society, Inc..
Sisaye, S. and Birnberg, J. G. eds., 2012. An organizational learning approach to process
innovations: the extent and scope of diffusion and adoption in management accounting
systems. Emerald Group Publishing Limited.
Dumitru, M. and et. al., 2011. A historical approach of change in management accounting topics
published in Romania. Accounting and Management Information Systems. 10(3). p.375.
Online
Cost accounting. 2018.[Online]. Available through:
<https://webcache.googleusercontent.com/search?q=cache:_N_z61HSVoUJ:https://
www.accountingcoach.com/blog/what-is-cost-
accounting+&cd=6&hl=en&ct=clnk&gl=in>.
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