Management Accounting: Types, Reporting Systems, and Benefits

Management Accounting
PART 1

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

Introduction
Management accounting is an essential aspect for every
business enterprise. This will assist managers to manage and
control their daily operations in more effective manner. This
project provides crucial information about various
management accounting systems and their valuable
requirements in future decision making.

Management accounting systems and their
essential requirements
Every organization in a manufacturing business lot of issues
takes place with regards to accounting and finances. For a Raw
material to become a finished goods, it has to go from various
processes and at every process accounting of all the transactions
is necessary to have the knowledge whether it is profitable or not
for a company to operate those processes. Accounts are usually
prepared as per the guidelines and standards set by the
accounting boards of concerned country.

Types of MA system
Some of the accounting systems are described as below :
Cost accounting System : A proper Cost accounting system
helps in estimation of total cost of various products to be
produced. Some other functions of cost accounting system
includes management and control of cost, valuation of
inventory and evaluation of profits.

Inventory Management
It is a system of controlling cost of inventory and overall
management of quality and quantity of inventory. Inventory
usually includes Raw material, Work in progress and
Finished Goods. This accounting system also take care of
analysing various inventory levels which includes
minimum, maximum and normal inventory level.