Management Accounting: Essential Requirements, Benefits, and Reporting Systems

This presentation provides an overview of management accounting, including its essential requirements, benefits, and reporting systems. It explains how management accounting helps in making effective decisions and achieving growth and success in the market. The presentation also explores various accounting systems and their applications, as well as how to critically evaluate accounting reporting systems. References are provided for further reading.

Management Accounting
PART 1

Covered content
• Introduction
 Management accounting and their essential requirements
 Various accounting system reporting use by an organization
• Evaluating benefits of management accounting system and
their applications
• Critically evaluate accounting reporting systems
• Conclusion
• References

Introduction
Management accounting is such a technique and procedure which
are intended to use with a motive of maintaining financial as
well as non-financial transaction which help them further in
making an effective decision regarding achieving desired goals
and objectives. The main aim of management accounting is to
keeping records of important data and information and
analysing them carefully in order to find out the actual financial
position of company.

Management accounting and their essential
requirements
With the help of management accounting, UCK group can
able to get accurate and crucial information related with
financial and statistical information in order to make an
effective short as well as long-term decision by the
managers.

Job cost system
It is the system which help managers of different
departments to assign or allocate cost for the
manufacturing of specific product or group of products.
Such system is used mostly when the products produced
are different from each other.

Prime optimisation system
Through using such system, the manager can do
mathematical analysis in order to find out the perception
of customers towards the prices charged by company for
their products and services. It will help company in fixing
the suitable prices which will maximising the buying
behaviour of customers and achieve huge profits.

Inventory management system
Through such system, the manages can able to manage
inventory on daily basis in order to prevent the situation
of shortage while manufacturing products. It help
managers to track the inventory and ordered whenever the
stock level comes under the minimum level.

Various accounting system reporting use by
an organisation
Every business organisation is required to adopt reporting
system in order to remember the transactions made earlier
so at the time of evaluation of profitability, the manger
can bale to find out the deviation if any, occurred from
which activities. The accounting managers are held liable
to keep records in systematic manner so that results can
be analysed in more effective and efficient manner.

Operating budget report
There are different department in an organisation which
have their own aim and goals which need to be achieved
in future through performing in right direction. The
managers should required to do proper evaluation of total
expenses and cost which will incurred while
manufacturing quality products.

Accounts receivable report
This type of report provides the list of unpaid customers along
with their all details and used credit memos as their respective
dates. This help company in collecting all pending amounts
from their customers through maintaining records for the
purpose of recovery on particular date.

Performance reports
It is considered as important activity which need to be
undertaken for the purpose of achieving desired
standards. With such report, the manager can able to find
out the deviation if any, through comparing actual
performance with desired.

Inventory and manufacturing reports
It is considered an important technique which help company
in achieving huge profits through meeting customer's
needs and requirements. It is helpful in tracking the level
of stock and evaluate them using different tools and
techniques which includes ABC costing, inventory
turnover ratio etc.

Job cost report
Such reporting method help in maintaining records of total
cost which should be assigned for specific product or
group of product. Through this, the managers remembers
that such amount were used for producing such product
after evaluation of profitability. It helps in identifying the
deviation if found so that such area should be carefully
determined.

Evaluating benefits of management
accounting system and their applications
Management accounting system provides various benefits
which help company in achieving growth and success in
market for longer duration. Through adopting various
accounting system, UCK furniture can able to achieve
competitive advantage through maintaining accounting
records and analyse the total cost incurred in production
process in order to archive huge profitability.

Critically evaluate accounting reporting systems
According to.... accounting system reporting system is one of the
important aspects which should be taken into consideration
with a motive of identifying the accurate financial position of
company. Accounting reports includes financial statements
such as profit & loss accounts, balance sheet and cash flow
statements.

CONCLUSION
It has been concluded from the above project report that management
accounting provides beneficial result to company through providing
the sufficient information and data regarding the financial and non-
financial transaction occurred on daily basis which will help in
making an effective decision regarding preparation of budget.

References
Nørreklit, H., 2014. Quality in qualitative management accounting
research. Qualitative Research in Accounting & Management.
11(1). pp.29-39.
Quinn, M., 2014. Stability and change in management accounting over
time—A century or so of evidence from Guinness. Management
Accounting Research. 25(1). pp.76-92.
Zaleha Abdul Rasid, S., Ruhana Isa, C. and Khairuzzaman Wan Ismail,
W., 2014. Management accounting systems, enterprise risk
management and organizational performance in financial
institutions. Asian Review of Accounting. 22(2). pp.128-144.

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