Table of contents •Introduction •Concept of management accounting and its system •Methods used for management accounting reporting •Benefits of management accounting systems •Integration of management accounting and its reporting •Conclusion •References
Introduction Management accounting is the branch of accounting which deals with providing the internal management with the information regarding the financial health of the business and outside economic condition of market. This accounting system helps in the process of decision making and these accounts which are prepared using this accounting is used to earn other parties trust.
Conceptofmanagementaccountingandits system Management accounting is a procedure of preparing managerial accounts and reports which can help the managers in the process of decision making. Cost accounting system Price optimisation system Inventory management system Job costing
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Methods used for management accounting reporting Managementaccountingreportarethedocumentwhich reflect true and accurate image of an organisation. These reports include various figures and their interpretations so that they can annexed with final reports of a business. Performance report Job cost report Inventory report Account receivable report
Benefits of management accounting systems Managementaccountingsystemsareusedinevery organisation as they provide guidelines to perform various tasks. Cost accounting and job costing systems are used to determine costs incurred in certain job and product, whereas inventorymanagementsystemandpriceoptimisation system are used to manage stock and allocate the prices to goods.
Integration of management accounting and its reporting Organisations are needed to prepare managerial accounts and reportstooalongwithfinancialaccountsastheyreflect qualitative image of the business. These reports are prepared with the help of management accounting and its systems helps in variousactivitiesanddepartmentsuchaspriceallocation, inventory management, cost ascertainment etc., these systems are integrated within an organisation as they provide framework and guidance to several business activities.
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Conclusion From the above presentation it can be concluded that management accounting and it systems are used to prepare various managerial accounts and reports which helps manager to take efficient decisions.
References A. Hammad, S., Jusoh, R. and Ghozali, I., 2013. Decentralization, perceived environmental uncertainty, managerial performance and management accounting system information in Egyptian hospitals. International Journal of Accounting and Information Management, 21(4). pp.314-330. Abdel-Kader, M. G. ed., 2011. Review of management accounting research. Springer.