Management Accounting Systems and Reporting

MANAGEMENT AC-
COUNTING

Contents
INTRODUCTION...........................................................................................................................3
1.1 Describe MA and point out the basic requirements for the various forms of MA systems:. 3
1.2 Management Accounting Reporting......................................................................................4
1.3 Evaluation of benefits of Management accounting systems:................................................5
1.4 Evaluation about how the MASs and MA is united/integrated within organisation’s
processes:.....................................................................................................................................6
2.1................................................................................................................................................7
2.2................................................................................................................................................9
2.3..............................................................................................................................................11
3.1..............................................................................................................................................13
4.1..............................................................................................................................................17
4.2..............................................................................................................................................19
4.3..............................................................................................................................................20
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

INTRODUCTION
Management Accounting is general concept that encompasses reporting, accounting, and
leadership frameworks together with famous corporate growth approaches. The central function
is to assess, quantify and track monetary and financial data that will aid management in making
decisions to meet a corporation's aims (Jiambalvo, 2019). It is primarily used by top managers in
taking key decisions and help to form strategies. It is a systematic framework which gather fiscal
data and transform it into useful information which finally used by managing personnel for
managerial decision-making.
The report discusses about numerous aspects of managerial accounting and its systems
along with discussion upon basic-requirements of its systems in relation to UCK furniture.
Further it involves systematic comparison of two or more business units with help to ratio
analysis.
1.1 Describe MA and point out the basic requirements for the various forms of MA systems:
Management accounting simple can be refers to process or mechanism which effectively
convert raw-data into relevant or critical information with intent to assist managers throughout
the managerial decision-taking phase. IMA (Institute of Management Accountants) explains that
"Management Accounting is indeed a practice requiring collaboration in financial decision-
making, strategic planning and output administration processes for top management
(Appelbaum, Kogan, Vasarhelyi and Yan, 2017). It incorporates financial reporting as well as
controlling resources to support management personnel in drawing up and managing the
key strategies of an enterprise.
Key perquisite of MA is adaption of processes defined under its different systems.
Moreover, it requires systematic collection, processing and evaluation of raw-data to convert
such data into more classified and effective meaningful information.
Managerial accounting is crucially important in thorough analysis of different
information and facts which are taken by managing personnel in organisational financial and
non-fiscal decision making processes.
Management accounting systems acts as a framework or model consisting of a variety of
procedures, methods and approaches used to review corporations 'functions. This has range of
systems outlined as below:

Inventory management system: This system is being employed to manage final products and
manufactured goods via point of supply chains to final distribution to consumers by managing
them. It conducts the diverse range of operations necessary to monitor product inventories inside
the entity. Through that, UCK furniture can manage stock-related costs for delivering
good quality outcomes. A manufacturing corporation faces multiple problems in keeping
details/information about existing stocks, raw materials, manufactured goods etc. Therefore, this
framework is configured in such a manner as to reduce the complexities. This system helps by
providing their parameters to maintain central tracking of each inventory (Weygandt, Kimmel,
Kieso and Aly, 2018).
Price Optimization system: This system/framework is about ascertaining the best and
reasonable costs that should be spent in a corporation's products or services. This enables a
corporation to evaluate multiple prices on an array of products by considering buyer
preferences and tastes. This assists in forecasting commodity prices at various demand scales and
is mixture of costs and production costs for improved performance. In this method, there is a
specific procedure that is pursued. UCK furniture can therefore use this to pick the correct
prices of the different furniture as per quality and design in order to enhance the revenue and
demand at optimum price.
Job Costing system: The system covers the aggregate reporting process and costs information
assigned to a single business jobs or manufacturing process. Job costing system is advantageous
for determining the expense of a given products or service and offering an option to review it
against the benchmarks and identify the discrepancy. This MA system is beneficial in UCK
furniture manufacture of diverse items with different features as it provides accountability by
assigning cost to different jobs. Job costs are categorized into raw products, raw labours and
overheads employed to assess actual costs of goods.
1.2 Management Accounting Reporting.
Reporting is crucial task in managerial accounting which provide effectiveness and
reliability to information used in the different discussed system of MA. There are several
methods which can be used by managers to report information as a part of managerial accounting
processes. Here key matters in reporting method is relevance, updated information, reliability,
understandable, accuracy of reportable information and data. As relevant and updated

information ensure the accurateness of decisions taken based on such information (Nitzl and
Chin, 2017). All these criteria related to information can be satisfied by adopting systematic
processes and selection of appropriate sources of information. In this regard following is
comprehensive discussion on key reports related to MA in context of UCK furniture, as follows:
Job costing report:
This is a report that enables the business to track ongoing operations or systems. this is
beneficial to recognize issues or assumptions that are evaluated to minimize them throughout a
specific job. It allows the managers before and when it's done to evaluate the concerns in a job
process. This report can help UCK furniture in finding the any faults in the production process
or specific jobs to eliminate them to enhance performance.
Inventory report:
This report is required to provide descriptions of the corporation's stock or inventories.
This indicates the accessible raw materials during holding period and is employed by
management to make informed decisions. The concerns that are taken with account include the
retention time, the cost of storage along with other essential aspects. For comparison, the forms
that can be used with this for estimation are the LIFO model (Last in First Out), the FIFO
approach (First in First Out) and the technique of weighted average value. -- of these, along with
efficiency, has its own individual pros and cons. UCK furniture use this system to assess the cost
of each kind of inventory item like raw items, materials, processes goods and finished goods
which assist mangers to track real time movement of inventories.
Performance report:
UCK furniture should use this kind of report to analyse each employee's adherence or
performance with the criteria and evaluate any deviation. This helps to make decisions on
employee or staff appraisals depending on a performance reviews. This also aims to create and
promote better strategies and services for employees employed within the organisation. It will
allow them to work faster and with total efficiency. Through this report, respective company can
concentrate on and rewards each of its workers based on their final performance.
1.3 Evaluation of benefits of Management accounting systems:
System Name Benefits
Inventory Management System In UCK furniture this inventory system help

managing staff and production managers to
optimise the aggregate costs of stocks and
track each movement and flow of inventory.
Price Optimisation System This system in UCK furniture can be used to
assess the key relationship among demand and
price of furniture. This useful in setting the
most efficient prices for its products (Andrei,
Gâlmeanu and Radu, 2018).
Job Costing System This system is efficient in maintain
accountability within entity. Further it enables
managers to effectively assigning costs to
defined key job processes within UCK.
1.4 Evaluation about how the MASs and MA is united/integrated within organisation’s
processes:
Multiple processes as well as practices serve as the central grounds of numerous MA systems as
operational structures build the foundations for such systems to be implemented. The
consequences of multiple operational processes are important specifications of the above-
mentioned systems. Like in the UCK, managers carry out manufacturing, financial and
accounting procedures that provide vital information and reporting on price optimization
programs and inventory control system such as cost data, inventory status, criteria, as well as
other accounting or financial data. Thus, integration of all processes within MA systems is
significant (Boyd and Pitre, 2019).
2.1