Management Accounting Systems and Reporting

This assignment delves into the significance of management accounting systems in modern organizations. It examines how these systems facilitate cost reduction through effective reporting mechanisms and empower management to make informed decisions based on comprehensive data analysis. The document highlights the various types of reports generated by management accounting systems, their impact on business operations, and their contribution to organizational success.

MANAGEMENT
ACCOUNTING (part 1)

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Management accounting systems.....................................................................................3
1.2 Various methods used for management accounting reporting:........................................4
1.3 Benefits of management accounting systems:.................................................................6
1.4 Critically evaluate how MA system and MA reporting reporting:...................................7
CONCLUSION................................................................................................................................8
REFERENCES .............................................................................................................................10
.......................................................................................................................................................10

INTRODUCTION
Management accounting is the best effective tool which can be used by the organisation
in order to gain the sustainability. As by taking help of the management accounting systems,
company could lower the cost of the product in an effective manner. The management
accountant uses various types of management accounting systems and also various management
reports so that the company could gain the competitive advantages in an effective manner. This
report contains the accounting systems which would further helping for incorporating the reports
for their concerned department (Chaney, Faccio and Parsley, 2011). Various management
accounting reports are made in order to lower the cost in an effective manner. This can be lead to
make management accounting system in order to lower the costs in an effective manner.
TASK 1
1.1 Management accounting systems
There are certain accounting tools which are used for making their business strategies in
an effective manner. These certain tools can be used by the organisation in order to gain the core
competencies in an effective manner.
Management accounting system is the procedure which is used in the organisation for
identifying, assessing and interpreting the financial and non-financial performance in an effective
manner. By implementing this, cited company can implement their business in an effective
manner so that the objectives of the business can gain an advance strategy in an effective
manner. Here, there are certain management accounting systems are mentioned hereunder:
Cost Accounting system: This is the costing system which is used by the organisation in
order to lower the cost in an effective manner. However, this can be said that business objectives
can be attained by using the cost accounting system as this will lead to gain the profitability in an
effective manner. Although, this can be said that the manufacturing business could gain the
competitive advantages over the rivals.
Inventory management systems: This is the system which is used by the organisation
for optimising the available resources in an organisation (Granlund, 2011). This is the most
effective tool which is used by the UCK group. Inventory management is the tool which is used
by the organisation in order to assist the organisation for lowering the cost in an effective

manner. There are so many tools that can be used by the organisation in order to gain the
sustainability in an effective manner.
Price Optimising System: This is one of the management accounting tool which is used
by the organisation in order to set the price of the product in an effective manner. In this intense
competition, everyone wants to gain the sustainability in an effective manner. However, this can
be said that the price of the product can be lowering down so that the organisation could gain the
profitability in a most effective manner (DRURY, 2013). However, this can be said that the price
of the product can be set after knowing the competitors product price and then the price of the
product is set so that the cited company could gain the competitive advantage in an effective
manner.
Job costing system: This is the costing method which is used by the organisation in
order to decide the cost of a particular job units. This is the most effective manner to know the
cost so of a particular lot. This is the most effective method which is used by the organisation in
order to gain the sustainability in an effective manner. This is used particularly in manufacturing
of drugs units so that each would get to know about the cost for a particular lot.
1.2 Various methods used for management accounting reporting:
There are various management accounting reporting which helps the business for leading
the business in an effective manner. There are so many management accounting reporting which
ultimately helps out the business for gaining the profitability in an effective manner. However,
this can be said that the management accountant uses above mentioned systems for making thee
management accounting systems in an effective manner. Although, this is the best tool which can
be used by the organisation in order to lower the business objectives in an effective manner.
There is a strong need to adopt these management accounting reports so that the business could
gain the viability in an effective manner (Lee and et. al., 2011). There is a strong need to know
about the real intent of these report so that the top level can reach to the final conclusion in an
effective manner. Management accountant with the help of above mentioned system, made the
reports which are mentioned hereunder:
Job costing reporting: this is the reporting which is made by the management
accountant by taking help of job costing system. This is the most effective reporting system that
can be used by the organisation in order to know about where the company could is leading and
where the cited company needs to have improvement. This is the reporting tool which is used by

the organisation for gaining the sustainable development. This reporting helps the top level
management in order to make the strategy for production of the goods in a particular job.
Budgetary reporting: This is the reporting tool which is totally based upon the
forecasting of the budget in an effective manner. However, this is mostly used by the
organisation in order to forecast their expanses and revenues for a particular period of time.
However, this can be said that the budgets reports helps the organisation for gaining the
sustainability (Liu and et. al., 2011). This is the most effective tool which can be used by the
organisation for knowing the deviation between the actual value and the forecasted value. If the
deviation occurs, then in that case, the management accountant uses appropriate steps so that the
deviation can be overcome effectively and make strategy in a proper manner. But if the deviation
is favourable then this reflects a great sign for the company's performance.
Inventory management reporting: This is the reporting tool which is used by the
organisation for assisting the management in order to make an effective tool which can lead to
have the adequate development. However, this can be said that the management of the company
could gain sustainability. This is the reporting tool which is totally relied upon the invnetory of
the company. By using this reporting framework, management of the company can gain the
sustainability in an effective manner. Inventory management helps the organisation for gaining
the business objectives in an effective manner. This can be said that the management of the
organisation could lead to frame the business objectives in an effective manner.
Cost reports: This is the management accounting which is used to measure the costs of
the products produced. This is done via forming whole overheads of the product overheads,
costs, labor plus in addition to an additional cost in the consideration. This is the sum which is
categorised into the amount of products manufactured. Whole of the data is sum-up in the cost
report. Cost report enables the managers the capabilities in order to foresee the cost value of the
goods versus the selling price. This enables the managers' control and plans profit margin.
Performance Report: Management accountants implement budgets in order to compare the real
earnings and expenses to the budgeted amounts. The main divergence calculated which are
assessed at the time of shaping the new and advanced budgets pluc entire information which are
related to the amounts which is listed on the performance report. These kinds of reports are made
every year, but few of the companies frame them quarterly or monthly. This report helps the
managers for planning for the future demands in manufacturing and enhancing the cost.

These are reporting frameworks which ultimately helps the organisation in order to gain
the profitability by way of using the available resources in an effective manner. Henceforth, this
is the most important tool that is used by the organisation in order to higher the organisation
viability in an effective manner (Schaltegger and Csutora, 2012). This is the most effective
manner which is used by the organisation in order to lower the expenses and higher the expenses
in an effective manner.
1.3 Benefits of management accounting systems:
Management accounting have diverse kinds of advantages, these kinds of benefits
coincide with the ability for the company's operations and whole profitability. This is also said
that the management could likewise form a competitive advantages by emerging the cost. Some
of the benefits of management accounting system which is demonstrated hereunder:
System Advantages
Job costing system  This is the system which helps the
UCK group for forecasting of various
kinds of costs throughout the
production process.
 This would stop duplication of efforts
as the same work which would be
demonstrated.
 This assist in the assessment of the
quality of the activities in an effective
manner.
Price Optimising system  UCK group is able to identify the
consumers trends which are relied upon
the various prices (Serenko and Bontis,
2013).
 This system helps the organisation for
optimising the profits in an optimum
manner along with the best prices.

 This helps in the segmentation of the
clients.
Cost accounting system  This system helps the organisation for
calculating the efficiency in processes
and after that helps the organisation in
forming enhancing along with the use
of this system.
 This would help out the organisation in
fixation and limiting of prices.
 Renders essential information which is
needed for making plans.
 With the application of this system,
company can reduce the cost of the
product efficiently (Ward, 2012).
 This accounting system helps the
organisation for removing the extra
costs in an effective manner.
Inventory management system  UCK company could enhance for
accuracy of its stock orders along with
the help of this system.
 This would enhance an adequacy and
correctness in saving the time and
money.
1.4 Critically evaluate how MA system and MA reporting reporting:
Types of Reporting Integration with the organisational
processes
Budgeting reports Integration between the organisational
processes which are connected to the UCK
group and budgeting reports frame a path for

the firm activities to focus on pre-determined
objectives in better way.
Job cost reports Various activities UCK group must be directed
towards the attained of cost objectives and cost
reports which could make easier to dtermine
the pricing strategies of the organisation and
lower cost of the product.
Inventory and manufacturing reports The integration between processes covered in
UCK group and this report renders better
management of inventory levels and producing
costs while forecasting the required level of
buying orders to be placed.
Performance Reports The integration or combination these reports
and UCK activities would assist managers to
plan for the future manufacturing and cost
enhances which leads to cost reduction and
more profitability.
Other information reports This combination between firms processes and
this kinds of reporting could render
management along with the an analysis of sales
order information and providing diverse
reports to track the order of the consumers and
their satisfying on the time (Wickramasinghe
and Alawattage, 2012).
Business situation or opportunities reports The combination of the organisation processes
along with these kinds of reports would
enables the organisation management to
critically assessment the situations and act as
per this for the decision to be made.

CONCLUSION
From the above mentioned report, this can be said that the management accounting
systems are used by the organisation in order to lower the per unit costs on the basis of reporting
systems in an effective manner. This can be said that the management accounting system could
be implemented by management accountant so that they could make reporting for their
concerned department so that they could make an effective decisions in an effective manner.

REFERENCES
Books and Journals
Chaney, P. K., Faccio, M. and Parsley, D., 2011. The quality of accounting information in
politically connected firms. Journal of accounting and Economics. 51(1-2). pp.58-76.
DRURY, C. M., 2013. Management and cost accounting. Springer.
Granlund, M., 2011. Extending AIS research to management accounting and control issues: A
research note. International Journal of Accounting Information Systems. 12(1). pp.3-19.
Lee, L. and et. al., 2011. On the use of partial least squares path modeling in accounting research.
International Journal of Accounting Information Systems. 12(4). pp.305-328.
Liu, C. and et. al., 2011. The impact of IFRS on accounting quality in a regulated market: An
empirical study of China. Journal of Accounting, Auditing & Finance. 26(4). pp.659-
676.
Schaltegger, S. and Csutora, M., 2012. Carbon accounting for sustainability and management.
Status quo and challenges. Journal of Cleaner Production. 36. pp.1-16.
Serenko, A. and Bontis, N., 2013. Global ranking of knowledge management and intellectual
capital academic journals: 2013 update. Journal of Knowledge Management. 17(2).
pp.307-326.
Ward, K., 2012. Strategic management accounting. Routledge.
Wickramasinghe, D. and Alawattage, C., 2012. Management accounting change: approaches
and perspectives. Routledge.