Management Accounting: Principles, Role, and Methods

Running Head: MANAGEMENT ACCOUNTING
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MANAGEMENT ACCOUNTING

Running Head: MANAGEMENT ACCOUNTING
Table of Contents
Overview..........................................................................................................................................3
PART A...........................................................................................................................................3
Principles of the management of Accounting..................................................................................3
Role of management accounting and the essential elements of different types of management
accounting systems..........................................................................................................................4
Different methods used for management accounting reporting......................................................5
Management accounting is integrated within the TPG Processing.................................................5
Benefits of the function to the TPG Processing...............................................................................5
PART B...........................................................................................................................................6
Advantages and disadvantages of different types of planning tools used for budgetary control....6
Different planning tools and their application for preparing and forecasting budgets....................7
Management accounting systems to respond to financial problems and leading to the
sustainability....................................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Running Head: MANAGEMENT ACCOUNTING
Overview
Management Accounting is a wide concept in the field of the management and the finance. The
managerial accounting mostly accumulates the information of the financial nature from various
areas such as the commercial procedures, stocks and the market information. It is the duty of the
management accountant to deliver an unbiased report to the higher authorities, providing all the
relevant facts from taking the strategic business decisions to, scheduling the costs, managing and
analyzing the performance of the business and finding out the deviations is the real role of the
management accounting system. In this report a detailed analysis is considered over how the
management accounting system works, the way it can solve the financial problems of the
business and what tools are used to execute such plan (Maskell, Baggaley and Grasso, 2016).
PART A
Principles of the management of Accounting
The beginning and the ending of the management accounting is done with the help of the
conversations. The role of the management accounting is to make available the relevant
information to the decision makers when it is required. The principle of the management
accounting is to provide the relevant information with respect to the past, present and the future
information (Raj, Walters and Rashid, 2017). The financial as well as the non-financial data is
also being presented. The four major principles which revolves around the management of the
accounting are as follows
Principle of influence: It has been rightly said that the communication provides the insight that
has been influential. The principle of the influence states that the relevant and the insightful
information are used at all the departmental levels. Good communication is used for transferring
the important information, to all the departments (Harrison and Lock, 2017).
Principle of Relevance: The principle of the relevance is the concept that is used to determine
the relevancy of the principle. The relevance determines the balance between the past, present,
future as well as the internal and the external information.

Running Head: MANAGEMENT ACCOUNTING
Principle of value: the principle of the value determines the impact of the value that has been
analyzed well. The management accounting helps in connecting to the business model and
requires the understanding of the external factors prevailing in the market (Ismail, Isa and Mia,
2018).
Principle of the Credibility: The principle of the credibility determines the accountability and
the scrutiny of the decision making process of the current as well as the future objectives
(Borker, 2016).
Role of management accounting and the essential elements of different types of
management accounting systems
Management accounting refers to the information and the style in which it is resented, the type of
the information that is presented and lastly the interpretation as well as the analysis. Management
Accounting helps the managers in facilitating the platform for the decision making and day-to
day operations (Otley, 2016).
Application of the management accounting: Assessment of the performance of the TPG
Processing is one of the largest applications that help in measuring the performance of the
employees. The measurements allow the management, to deal with the performance against the
standard benchmark and initiating any recovery step in case of any deviations found in the
business.
Identification and the measurement of the risk: The factor of the management accounting is
that it identifies the assessment of the risk and various divisions as well as the departments. In
this way the TPG Processing is able to achieve the objectives.
Allocation of the Resources: The management accounting is the proper answer to the proper
allocation of the resources as it would result in the efficiency as well as effectiveness. This is
necessary for the long term sustainability of the TPG Processing (Verbeeten and Speklé, 2015).
Presentation of the financial statement: the presentation of the financial statements is one of
the most important factors and this can be achieved with the help of the superior management
accounting. There are different types of the data and the management accounting helps in
bifurcation of the cost and the financial data. Hence, all these factors play a vital role of the and