Management Accounting: Systems, Methods, and Benefits

Management Accounting
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Management accounting and essential requirements of different types of management
accounting systems......................................................................................................................3
Different methods used for management accounting reporting..................................................4
Benefits of management accounting systems and their application within an organisational
context.........................................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Management Accounting can be defined as methodology, which aid a business
organisation in making appropriate determinations considering both financial and non financial
information (Carlsson-Wall, Kraus and Karlsson, 2017). This is specifically done through
recording audits and other financial data on paper so that a company could effectively take
valuable decisions. Under this report, Prime Furniture is taken into consideration which is one of
a growing East London based company. Including this, report will consider requirements of
various management accounting systems, methods utilised for accounting report and lastly,
benefits of management accounting system will also be discussed.
MAIN BODY
Management accounting and essential requirements of different types of management accounting
systems
The term “Management Accounting” referred to stipulation of fiscal information, that
helps in advising an organisation to conduct daily operations, distribution of funds and at the
time of taking appropriate determinations for the betterment of company. If it is talk about,
Prime Furniture then it is required by it's existing and new staff of financial departments about
different accounting systems that can be taken into consideration and some of these are presented
underneath:
Cost Accounting System: This type of system, can also be considered and named as
commodity pricing method that is being taken into consideration by a company when it comes to
pull out estimation cost of different products. Focusing on this system, Prime Furniture can
effectively conduct a range of actions like profitability assessment, cost regulation & product
assessment as well. Away with this, it has also been analysed that considering Cost Accounting
System, Prime Furniture can reduce the additional cost to minimal which would aid firm in
taking right decisions in relation to distribution of funds (Goh and Scerri, 2016).
Inventory Management System: Another crucial system, which can be utilised by
Prime Furniture, at the time of managing inventory in much effective manner. It specifically may
aid Prime Furniture in balancing both demand along with the supply of final products. It has
been found that, considering this system, Prime Furniture could effectively meet all the demands
of customers through filling the vacant areas within the store or warehouse.
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