Introduction to different management accounting techniques

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Explanation of management accounting and the essential requirement of different type of
management accounting system..................................................................................................1
2. Explaining different type of management accounting reporting.............................................3
3. Enclosed in PPT......................................................................................................................5
4. Explaining the advantage and disadvantage of different planning tools for budgetary
system..........................................................................................................................................5
5. Different management accounting techniques used by companies in order to respond to the
financial problems and leads to sustainable success. .................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Management accounting is very crucial for efficient operation and function of a business
enterprises. MA is essential in order to traces the financial as well as non-financial information
regarding various activities of business organisation. Management accounting is consider to
present the accounting information of the business to the management in a manner which assist
them in making essential policies and decisions regarding regular business operations. The
present report which assist in getting a deep insight to the various aspects of management
accounting in N&C Building product, a manufacturing company based in UK. As an assistant
accountant on company, the present report will listed the importance of different management
accounting system. It will also highlight the various managerial accounting reports and its
integration in organisation. Further, presentation will be made which will demonstrate the
calculation on income statement with different management accounting techniques. Moreover,
the report will evaluate different planning tools of budgetary control and its application for
preparing and forecasting budgets. Furthermore, report will compare the ways through which
organisation can respond to its financial problem and leads to sustainable success.
1. Explanation of management accounting and the essential requirement of different type of
management accounting system.
In today's competitive business world, accounting is said to be an important tool in order
to proficiently analyse the business activities and its operations. Management of company in
need to effectively adopt the management accounting which assist the internal managers to
facilitate their decision making process. Thus MA can be defines as an operation of applying the
skills and knowledge in order to prepare accounting information of company in a way which
would stimulate the management of N&S Building Products Limited in the process of
formulating policies and strategies for the growth and success of organisation.
Management Accounting is essential in organisation as it assist all department and
functional area to report their operational activities information to top-executives (Holopainen,
Niskanen and Rissanen, 2019.). These information will help in making decision making
regarding various departments and their operations more effectively. The different management
accounting system that can be effectively apply in company are as follows:
Cost accounting system:
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This system is used in order to track and record the activities of manufacturing of a
product. Cost accounting effective for the manufacturers which assist them, in order to tracks the
flow of inventory throughout the process of production. It is every essential in order to analyse
the profitability of a product (What is a Cost Accounting System? , 2019). To assist the managers
to estimate the correct cost of the product. It can be effectively integrated in N&C limited in
order to track the cost of raw material and the manufacturing cost of the final product. There are
two main types of cost accounting system:
Job order costing: It is a cost accounting system which assist in a assembles all the
manufacturing cost to each job or task separately.
Process costing system: It includes the accumulation of cost of each operation, activity,
process and departments. It is appropriate of the N&S Ltd as there are various departnmenst6 and
functions includes in the process of production.
Advantage Disadvantage
 It assist in eliminating waste, losses and
inefficiency.
 It assist in identifying and determining
the reason of profit and loss which
increase efficiency
 Cost of the manufacturing keeps on
changing which leads to increase the
inaccuracy.
 It depends on the past performance and
does not considered the future
contingencies.
Inventory management system: is an essential managerial system which assist a manager to
track and keep record of the flow of goods in a company. It is vital in order to track the flow of
goods throughout its supply chain in an organisation. It is a complex system, which needs to
track the minute details of each new and returned products in warehouses or at the point of sales.
It assist the management in order to take decisions regarding supply chain of the company. It can
be better apply in N&B limited through different inventory management software, which assist
in tracking and keep details of all the products throughout various stages (Hwang, Lin and Shin,
2018). The inventory management system considered vital as the inventory are the core asset for
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