Management Accounting Systems and Techniques

Management
Accounting

INTRODUCTION
Management Accounting refers to the use of different types of techniques to analyse and
interpret the financial data and information available in order to take the correct decisions
(Armitage, Webb and Glynn, 2016). If the managers use its provisions in the correct manner then
it can result in taking of such decisions which can likely create a strong impact on the working
pattern and the functioning of the company. For using it the managers are required to have sound
knowledge of the different types of financial concepts and must be able to perform a deep
analysis on the financial data of the company in an accurate manner to get the desired outcomes.
For this report MVMT Watches has been chosen. This company has headquarters in Los Angels,
United States. In this assignment, detailed focus will be made on demonstration of understanding
of management accounting systems, application of a range of its techniques. Additionally,
explanation of the use of planning tools and comparison of ways in which companies are using it
to respond to financial problems will be discussed as a part of this project.
TASK 1
P1: Management Accounting Systems
Management Accounting refers to making the use of different types of financial
provisions in an effective manner so that the managers are able to take the right decisions
effectively and efficiently without problems and issues. Therefore the managers of Innocent
Drinks should be able to make the correct use of it for taking of short-term and long-term
decisions. If they make the right use of its methods and techniques then they will be able to attain
the goals and objectives in the future time period.
There are different types of management accounting systems (Bui and De Villiers, 2017).
These are explained as follows-
Cost Accounting System- This system is basically meant to identify the various costs
which can be incurred within an organization. Using it, the companies like MVMT Watches can
make sure that they are able to identify and reduce the costs effectively and efficiently.
Essential requirements-
 In a Cost Accounting System there must be a methodology which can be used for
identifying and segregating the costs and overheads of different types of departments in
the company.
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