Management Accounting and Their Requirements

This presentation provides an overview of management accounting and its requirements. It discusses the inventory management system, cost accounting system, job costing system, and price optimization system. It also explains the different types of management accounting reports. The presentation is relevant for students studying management accounting or anyone interested in understanding the role of accounting in business operations.

Task 1
Management Accounting

Management Accounting And
Their Requirements
Management Accounting: It can be described as the procedure of
data management, evaluating and controlling by assessing the
company's operating circumstance. It's being used by management
at Crest Dairy to develop potential to increase the organization.
Management accounting system: It can be described as a method
that executives use to decide the company’s capital position such
that they can make a decision and shape new enterprise
improvement policies.

Inventory Management System
It's being used by executives of most manufacturing firms to
maintain accurate stock data which is used to help the business
grow. In order to satisfy their request, management at Crest
Dairy will determine the requirements for raw materials that are
used to manufacture goods and marketed to consumers. There
are various methodologies of inventory valuation that businesses
use as per their regulations, which are defined elsewhere here:

Cost Accounting System
It is a method that the company uses to measure the price of the
service, which therefore effectively improves accounting policy,
productivity and cost benefit analysis. Crest Dairy's manager uses
this method to measure the price of the product and try to reduce &
monitor it over the time frame. This method helps to lower
manufacturing costs, which produce more profit margins instantly.
Thus, the administrator analyses all manufacturing activities and
establishes a plan to minimize the closing value of product, work -
in - progress and completed goods.

Job Costing System
This system is used to estimate related kinds of products produced
in the organisation. It is a system that involves cumulative
knowledge about the specific item which is used in the production
unit. With the support of Crest Dairy's job costing system
manager, this method can be used to optimize their company
operations. This accounting method was basically necessary to
calculate the cost of output of each unit. This system is
implemented when goods with large costs are separated into
separate groups and distinct from each other.

Price Optimization System
It is a statistical programme in which the business measures the
market and how that will differ as per the shift in the commodity
price bracket. For executives, it is basically important to evaluate
their consumer purchasing behavior that affects market growth.
These variables should be evaluated before designing any plan
planner in the sense of Crest milk, and techniques should
therefore be formulated. This system enables to gather all the
necessary expense, inventory level and price decision data that
improves the profitability.

Different types of management
accounting reports
Reports are critical for companies because in terms of managing
company, it helps in maintaining documents and records.
Accounting management includes the analysis of financial reports
and the declaration of competence to govern operations. Various
management accounting reports have been prepared by managers
in connection with Crest Dairy to consider the financial role in the
dynamic market climate that aims to enhance business operations.
The management of Crest Dairy going to prepare types of
organizational accounting reports, which are described as:

Inventory Management Report
This is essential for the organization to complete the report in regard to
inventory management and stock monitoring in order to properly operate
a company. In general, inventory control documents are collected by
companies participating in the process of acquisition. This document is
published by managers to monitor the inventory provided by the
company in relation to Crest Dairy and aims to enhance efficiency and
performance. It helps the business to realize the price involved in
manufacturing. The cost of materials in this regard is understood to be
normal operating additional expenses in the acquisition of supplies, etc.

Cost Accounting report
Each organisation needs to describe their expenditures and
expenditures that occur during the execution of operation. It is
provided for the purpose of having the difference between both the
cost estimate and the absolute amount. In order to understand the
inconsistencies in the planned and actual expenses involved in the
execution of the different business operations, this is a report that is
necessary for the organisation to prepare. It is helpful for Crest
Dairy to be active in the production process, and it is more necessary
to be able to allocate expenditures and manage account statements.

Accounts Ageing report
This report is connected to credit which should be legally registered and
handled in a company in order to effectively monitor all activities. In
other terms, it is a critical analysis of financial accounting that helps the
company to manage the company's cash flow by tracking the accounts
receivable of transactions, allowing the organisation to decide whether
to extend the loan to its customers. With the support of this document,
managers of Crest Dairy identify credit-related issues in the organisation
and properly manage the material. This also allows in some periods of
time to collect the unpaid sum so that company can be run efficiently.

Benefits of management accounting
system
 Inventory management system: Tracking the stock that is
available in the market is helpful to the organisation. This device
is used by Crest Dairy to accurately review the stock and make a
purchase for more goods and services.
 Cost accounting system: This is another system that benefits
from calculating the expense of real and budget quantities that
can lead to improving efficiency. This method is used by Crest
Dairy to have the exact profits and expenditures so that all
operations can be handled correctly.

Accounting system and reports linked with
organizational process
It is critically reviewed that all accounting systems and reports are
incorporated because the company is sufficient to transport out its
commercial business with the aid of it. Managers are able to
gather data with both the aid of the accounting system which is
used at the time of the report. In addition, through using
accounting systems or reporting techniques, administrators help to
control operational activities. For instance, Crest Dairy executives
use the cost accounting method to measure the price of the service
and it will be recorded in the cost accounting report.