Management Accounting: Types of MAS and Managerial Reports

MANAGEMENT
ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types of MAS.........................................................................................................4
P2 Various kind of managerial reports........................................................................................6
TASK 2............................................................................................................................................8
P3. Preparation of income statements........................................................................................10
TASK 3..........................................................................................................................................11
P4. Benefits and drawbacks of various types of planning tools used for budgetary control.....11
TASK 4..........................................................................................................................................13
P5 Management accounting systems to respond to financial problems....................................13
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................16

INTRODUCTION
The MA is a detailed process that starts from collection of both monetary & non
monetary data and ends with preparation of internal reports. The use of this accounting is raising
in companies as it helps in each and every aspect (Fleischman and Parker, 2017). On the basis of
information provided by this accounting management department of businesses take suitable
steps in succession. It becomes possible because they determine exact financial position and as
per it utilise available resources in an effective way. Basically, the aim of project report is to
spreading detailed information about MA and its role in business entities. For better
understanding of various aspect of MA, a company is selected which is Excite entertainment
limited. This company is located in United Kingdom and operates in entertainment industry. In
addition the project report covers about variety of MAS, MA reports and planning tools. As well
as role of the planning tools and MAS in the aspect of sort out from financial issues is detailed in
project report.
TASK 1
Comparison between MAS and Financial accounting.
Management accounting – It can be defined as a kind of accounting which is related to gathering,
analysing and interpreting quantitative & qualitative information for computation of internal
reports.
Financial accounting – This is a kind of accounting that is linked with process of assessing
monetary information of business entities that is being used for preparing the financial
statements at the end of an accounting year (Gurarda, 2015).
Difference between financial accounting and MA :
Basis of difference MA Financial accounting
Kind of
information used
In the MA both type of information
qualitative and quantitative are used
in order to produce reports.
On the other hand, in this
accounting only monetary
information of various activities is
included.

Presentation
format
Under, MA the reports are prepared
without following any specific
format.
While in this accounting, financial
statements are produced on the basis
of set standards.
Legal requirement It depends on companies whether
they want to prepare reports or not.
This is not compulsory.
On the other hand, under this
accounting it is mandatory to
prepare financial reports at the end
of accounting year.
P1. Different types of MAS.
Cost accounting system – This is defined as the accounting system that is related with the
procedures of anticipating cost of several activities as well as operations. The main aim of cost
accounting system is to minimise and manage whole expenditure of organisation (Baumann,
Lehner and Losbichler, 2015). Also, it is needed through firms to delegate the monetary
resources within firms operations according to the expected expenditure of various activities.
There are many types of costing techniques that are utilised into system of accounting like direct
costing, standard costing and many more. Excite entertainment limited are utilising cost
accounting system as this aids them to control the expenses of activities related to entertainment
sessions.
Inventory management system – This is considered as the management accounting system as it
is the combination of two activities that are observing as well as maintenance of available
products into warehouse. The stored raw material may be firm's assets, final goods and others.
This is significantly required through production department of organisation as it is helpful for
developing effective decisions in respect to manufacturing. Within this particular system, several
approaches are involved like perpetual inventory system, periodic inventory system and many
more. Just in time is related with reducing manufacturing time in order to control costs. Perpetual
inventory system trace the availability of stock. Also, periodic inventory system is beneficial for
evaluating inventory amount that a firm has at the end of accounting period. Therefore, Excite
entertainment limited used this system of accounting for managing its inventories like equipment
such as music system, LED and others.