Management Accounting: Understanding Systems, Techniques, and Tools

Management Accounting

Table of Content
• Introduction
• 1. Understanding of Management Accounting Systems
• 2. Range of Management Accounting Techniques
• 3. Use of Planning Tools in the Management Accounting
• 4. Use of Management Accounting to Response Financial
Problems
• Conclusion
• References

Introduction
Management accounting is the process of managing
information for the analysis of their financial data and it will
use by the manager to for the internal decision making
process. This report include the Conway Ltd financial
information to calculate or analyse the cost of their products.
It will be calculated through marginal or absorption costing
method.

1. UNDERSTANDING OF MANAGEMENT
ACCOUNTING SYSTEMS

DIFFERENT TYPE OF MANAGEMENT
ACCOUNTING SYSTEM
 Cost Accounting System: Managerial framework which help the
manager to identify the cost of each unit. Manager analyse the cost
through evaluating their profit margin, involuntary valuation and
try to reduce product cost and control it.
 Inventory Management System: Software which help the
organisation to track their inventory level on regular basis. As
physical counting will take enough time so this system help the
manager to improve their warehouse system.

BENEFITS OF MANAGEMENT
ACCOUNTING SYSTEM
 Cost Accounting System: Help the manager to identify the
cost of each unit including the labour, material & other
overheads. Easy identification of the overall expenses or
revenue of the organisation which further helps in achieving
business objectives & goals.
 Inventory management system: Increase productivity or
efficiency in the operational functions. Reduce the wastage
of material as well as provide prior information before
shortage. Provide accurate information and reduce manual
burden to record each entry.