Management Accounting Activities: Systems, Reporting, and Planning Tools

MANAGEMENT
ACCOUNTING
ACTIVITIES

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
P1 Management Accounting and essential requirements of different Management accounting
systems.........................................................................................................................................3
P2 Methods used for Management Accounting reporting...........................................................4
M1 Benefits of MA system and their application in business context........................................5
D1 Integration of Management accounting system and reporting within organizational
processes......................................................................................................................................5
LO 2.................................................................................................................................................6
P3, M2, D2 Preparation of income statement through marginal and absorption costing............6
LO 3.................................................................................................................................................8
P4 Explanation of advantages and disadvantages of different types of planning tools used for
budgetary control.........................................................................................................................8
M3................................................................................................................................................9
LO 4...............................................................................................................................................10
P5 Comparison between different organization's management accounting systems they used to
respond to financial problems....................................................................................................10
M4..............................................................................................................................................11
D3...............................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Management accounting is a modern tool for management which involves presentation of
accounting information in a manner which results in assisting managerial decision-making, so
that policies and strategies can be created for the day to day business operations ( Ameen, Ahmed
and Abd Hafez, 2018). With reference to Snooker England Limited, different types of MA
systems will be discussed in this report. Also, various MA reporting methods, pros and cons of
planning tools for budgetary control and MA to respond to business's financial problems will be
discussed in this report. At last, it would be highlighted that how with the help of introducing
MA, organisations can ensure their sustainable success.
MAIN BODY
1. Evaluation of integration of Management Accounting systems and management accounting
reporting within organisational processes
MA is a profession which includes assisting management while making decisions,
devising plans and policies, applying performance management systems, preparing financial
reports and establishing control over the internal processes of the organization by formulating
and implementing strategies. Various financial reports such as inventory reports, budget reports,
etc. are used for facilitating decision-making to effectively and efficiently undertake operational
activities (Saukkonen, Laine and Suomala, 2018).
There are various MA systems applied within Snooker England having different essential
requirements, such as the following:
Cost accounting system: It is framework used by Snooker England to undertake estimation of its
product's costs to facilitate cost control, profitability analysis and inventory valuation (Ostaev
and et.al., 2020). In this way, records can generated pertaining to cost of manufacturing concern
by grouping costs into different categories such as direct, indirect, fixed and variable costs. This
system is essential for the company to determine per unit cost of its product and setting its final
price.
Inventory management system: With this system, Snooker England can value its inventory by
applying different techniques such as LIFO, AVCO and FIFO. Also, tracking of inventory of
materials and final products can be possible throughout the supply chain. It is essential for setting
selling price, determining further requirement of products and materials and any loss associated
with it (Endenich and Trapp, 2020).

Job costing system: With the help of this system, Snooker England can accumulate data about
costs associated with particular job (Azudin and Mansor, 2018). It is helpful in determining
whether a particular job is profitable or not. Accordingly, resources can be easily diverted among
low profitable and high profitable jobs.
Management Accounting reporting
MA has become very crucial while managing organizational performance and it is
recommended to Snooker England to utilize different methods of MA, so that managerial tasks
can be accomplished in efficient manner. The various MA reporting methods are as follows:
Budget report: This report helps in establishing budgetary control through which future aspects
of Snooker England can be determined (Pasch, 2019). It depicts spending plan of the company
and accordingly, arrangement for the amount of money can be done in advance to avoid
shortages. Also, steps could be taken while comparing actual performance against what has been
budgeted to ensure that the organization is moving towards its end goals.
Account receivables ageing: This report shows record of unpaid invoices along with indicating
the duration of their being outstanding (Kostyukova and et.al., 2018). This procedure within MA
allows Snooker England to determine those invoices that are open and also keeping those clients
on the top who are considered to be slow paying one. Accounting, effective collection and credit
management can be ensured and policies associated with it can be modified as per the
requirements.
Job cost reports: It is a comprehensive documentation of all the costs associated with specific
jobs concerning the organization through which expenditure plan can be created to ensure its
accomplishment on time without any shortages (Maheshwari, Maheshwari and Maheshwari,
2021). Also, with this report cost can be tracked for all jobs that is ongoing in the real time.
Inventory & manufacturing report: This method of reporting allows for identifying material in
stock, shortages or loss of materials and sales rate of the final product. Snooker England can
make decisions on whether it should manufacture more or not and in how much quantity.
Integration within organizational context
MA systems benefit organization in many aspects, like cost accounting system is helpful in
ascertaining the cost of the business operations accurately, which in turn allows for creating
effective budgets to ensure cost controlling and higher efficiency. Similarly, inventory