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Management Accounting Assignment - MA system

   

Added on  2021-02-20

8 Pages2514 Words50 Views
Management Accounting

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................1A. Management accounting and the requirement of MA system in the organisation.................1B. Methods of management accounting reports..........................................................................2C. Benefits of MA system and their application in organisation................................................3D. Integration of management accounting reporting and management accounting system.......4PART 2 ...........................................................................................................................................4Usage of planning tools in management accounting...................................................................4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6

INTRODUCTIONManagement accounting is the tool of using financial accounting information to gather,sort, analyse and manage to take the advantage of information and provide the support to takethe effective and efficient decision to manage and control the organisation performance and itsfunction. The report present the MA function and the requirement of MA system in theorganisation. It explains the various methods of management accounting report to record thetransaction such as account receivable report, budget report, performance report etc. in thecompany. It also explains the benefits of management accounting to achieve the organisation andgoal and objectives and the integration of management accounting system and report. Ithighlights the different planning tool such as benchmarking, activity based costing, cash flowbudgeting and break even analysis method to manage and control the organisation performanceand profitability.PART 1A. Management accounting and the requirement of MA system in the organisationDefinition : According to IMA (Institute of Management Accountants) MA is the technique ormethod to participation in management decision making process and develop the plan andstrategy to measure the performance of management system and provide the expert knowledgeand skills to prepare and control the financial reports. Management accountants also known asmanagerial accountants.Requirement of MA system The aim of financial accounting is to prepare financial information for the external users such aslenders, suppliers, creditors etc. whereas management accounting use the financial informationfor the internal and confidential purpose to take the effective and efficient decisions to improvethe performance of the company (Kaplan and Atkinson, 2015). The management accountingsystem are : Cost accounting system : It was also known as product costing system. Cost accounting systemis required by the company to estimate and interpret the cost of the product and services toanalyse the inventory, profitability and to control the cost of the company (Weetman, 2019). Theestimation of accurate cost help the company to achieve the target and objective of the company1

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