Management Accounting: Types, Reporting, and Benefits

Management Accounting
PART 1

Covered content
• Introduction
• Various types of management accounting system
• Different types of reporting
• Benefits of using management accounting system
• Critical evaluation of reporting
• Conclusion
• References

Introduction
Management Accounting is important concept which is necessary
to implement by every organisation to attain sustainability in their
operations. It is the process involves preparation of different
accounts which provides timely statistical information to managers
to make short term decisions. In the present report explain about,
Essential requirements of different types of management
accounting systems, different methods of management accounting
reporting.

Various types of accounting system
It is broad concept which includes the provision of cost
accounting also. It includes the preparation of different
accounts which records the information regarding the
functions of different departments. Different accounting
systems are named as Job costing, inventory, cost and
managerial accounting.

Difference between Management and
Financial accounting
Management Accounting
Financial Accounting
Different accounts and reports and
prepared for internal parties
Profit and loss account is prepared
for external parties
The concept of management
accounting is future oriented helps
in forecasting of future actions
These accounts are prepared on the
basis of historical data
Measures both financial and
operational performance of
organisation
Helps in measurement of financial
data

Job cost system
This system helps in assigning manufacturing cost to each
and every product which is produce by UCK Furniture. It
contributes in tracking the expenses. It is important system
which helps in identification of the profitability which is
associated with production of such product. Procedure of
Job costing is defined below: