Management Accounting

This presentation provides an overview of management accounting, including its definition, principles, and methods. It discusses the benefits of management accounting and the integration of accounting systems. The presentation also covers different types of accounting reports and their role in decision-making. References are provided for further reading.

Management Accounting

Table of Content
• Introduction
• Definition of Management Accounting and principles
• Different methods used for management accounting reporting
• Evaluation of management accounting benefits
• Critical evaluation of integration of management accounting systems
• Conclusion
• References

Introduction
Management accounting is a systematic process of determining,
recording, interpreting useful financial data into account so that future
decision are made in effective manner. Management uses different types
of accounting system and report that support in providing necessary
information to accountant so that useful information is provide to
stakeholder.

Introduction
Management accounting is a systematic process of determining,
recording, interpreting useful financial data into account so that future
decision are made in effective manner. Management uses different types
of accounting system and report that support in providing necessary
information to accountant so that useful information is provide to
stakeholder.

Definition of Management Accounting
and principles
According to J. Batty, management accounting is defined as the process
of forming annual management accounts and reports that help to
deliver appropriate, accurate and financial and statistical data to
manager that ease the process of decision-making.
In the words of Robert N. Anthony is defined as the process of
forecasting and decision making that support to run business in
effective manner.

Cont...
According to Bostock, Management Accounting can be defined as the
art of presenting to management such figures, whether in terms of
money or other units, as will assist management to do its job.
Principle -
 Relevance
 Influence
 Value
 Integration

Cont...
Roles of management accounting
The main role of management accounting is to provide authenticate
and equivalent information to manager for make useful decision for
future growth. Some role are:
• Help to forecast the future:
• Helping to understand Performance Variances:

Cont...
Types of management accounting system and their requirement.
•Cost accounting system
•Inventory management system
•Job costing system
•Price optimising system

Different methods used for management
accounting reporting
It is the duty of an accountant in medium size enterprise to prepare
management accounting report. These report are prepared for
accounting period. Hence, used for the purpose of planning, regulation,
decision making and measuring the performance.

Cont...
Different types of reports are:
•Budget report
•Account receivable report
•Cost management report
•Inventory and manufacturing report
•Performance report
•Job Cost report

Evaluation of management accounting
benefits
Manager need to make befitting decision, thus the make use accounting
systems which assistive to modify profitability of Airdri in upcoming
time. There are definite profit to company making making use of
system such as, find out the intent and goals which are fit for future.
Decrease of total cost, increasing efficiency are particular need of all
finance manager.

Critical evaluation of integration of
management accounting systems
From the above above discussed assorted kind of accounting reports,
manager are able to analyse that each important characteristic for
acquisition maximal result for Airdri. The main need is to achieve all
purpose and goals which are fit by the company. In accordance with
this, performance report will be evaluated in more effective ways so
that exact detail information regarding financial position can easily be
analyse in properly.

Conclusion
From the above power point presentation it has been analysed that
costing system and inventory management system help company to
control cost and manage limited stock for better running of business.
There are various kind of report such as performance, account
receivable report so that important decision are made to improve the
overall performance of Airdri.

References
Lavia López, O. and Hiebl, M. R., 2014. Management accounting in
small and medium-sized enterprises: current knowledge and
avenues for further research. Journal of Management
Accounting Research. 27(1). pp.81-119.
Hopper, T. and Bui, B., 2016. Has management accounting research
been critical?. Management Accounting Research. 31. pp.10-
30.

Thank You