Management Accounting Concepts and Techniques for Decision Makers

Management Accounting
Concepts and Techniques for
Decision Makers

TABLE OF CONTENTS
INTRODUCTION.....................................................................................................................................3
PART 1...................................................................................................................................................3
Management accounting and various types of management accounting systems............................3
Different methods used for management accounting reporting.......................................................5
Benefits of management accounting system and application within company context....................7
PART 2...................................................................................................................................................7
Techniques of cost analysis for preparing income statement............................................................7
PART 3.................................................................................................................................................11
Advantages and disadvantages of various types of planning tools used for budgetary control......11
Comparison of organisations adoption of management accounting systems for responding to
financial problems...........................................................................................................................13
CONCLUSION.......................................................................................................................................15
REFRENCES..........................................................................................................................................16

INTRODUCTION
Management accounting can be understood as one of the most important parameter
where reports preparing short term and long term decisions by analysing business working
operations , interpretation of financial information goals. Management accounting enables to
form evocative working scenarios within business and to develop functional growth, for
longer term within wide changing industry paradigms. Report will be analysing various new
working goals within management accounting aspects for stable productive growth goals and
to yield focus onto how keen scenarios can be actively reached on. The report will be
analysing management accounting systems and various methods used for reporting in context
of company where there are various parameters growth searched on. Innocent drinks is one of
the biggest company producing juices, having wide products sold within supermarkets and
various outlets where it sells more than two millions products within per weak globally. The
report shall be discussing analysis of how various techniques of costs analysis are used to
prepare income statement, financial reports. Report also explains advantages and
disadvantages of various planning tools which are used for budgetary control, along with
comparison of how companies are adopting management accounting systems for responding
to various financial problems within business scenarios.
PART 1
Management accounting and various types of management accounting systems
Management accounting can be understood as one of the most innovative and
working aspect within business scenario for gaining new functional scenario within working
parameters with high functional innovation and for generating structured financial reports of
companies (Taschner and Charifzadeh, 2020). Managers have been analysing management
accounting as provisions of accounting information in order to better inform themselves
before they reach to decision where matters of company play high importance. The
management accounting aids management and performance of control functions for
developing new evocative functional presentation of financial reports which governs
goodwill structure and wider working innovation among varied goals. Management
accounting is used within company working phenomenon where main objective is to analyse
statistical data and accurate decisions, where controlling enterprise enables to pool on
development for long term working innovative efficiency. Innocent drinks within
management accounting working avenues will be able to adopt professional skills and

knowledge, for preparation of financial and accounting information parameters which forms
effective base for internal management functional goals.
There are various types of management accounting systems which can be analysed based on
their parameters and operational goals for developing effective new functional representation
of working efficiency which can be discussed as follows:
Cost accounting system
The cost accounting system can be understood as one of the most effective system
when it comes to estimating value of products for profitability analysis, cost control measures
and inventory value. Accurate cost accounting system within costing of products is very
essential for company to form varied working structure which assists in estimation of closing
value of materials, work in progress and varied range of finished products within financial
statements. Cost accounting systems must be practical, capable of bringing on accurate
functional representation working aspects under which there is varied analysis of all detailed
cost information of all products manufactured and sold. The essential requirements for
effective cost accounting system is that it simply records costs for purpose of fixing sales
prices and accomplished with focus on manufacturing goals. It has been recognized as one of
the most relevant aid to modern management where there is assistance of working goals, to
bring on wider relevance functional representation and to economic development
(Fleischman. and McLean, 2020).
Inventory management system
The inventory management system can be understood as one of the most innovative
process where company uses it to track goods throughout entire supply chain process from
purchasing to production and end sales, which enables to govern inventory management.
There are typically three kinds of inventory systems manual, periodic and perpetual where
technological requirements complexity and implementation increases and moves from first to
last, with efficiency parameters and accuracy goals for gaining stronger working parameters.
The essential requirements of inventory management are tracking activities of movement of
stock within company and developing analysis of daily counts, managing stock products with
clear description and organized work environment parameters for attaining effective goals.
Job costing: