Management Accounting Systems and Reports

This presentation provides an overview of management accounting systems and reports. It discusses the different types of systems, such as cost accounting, inventory management, job costing, and price optimization. It also explores the various reports used in management accounting, including budget reports, accounts receivable aging reports, cost managerial accounting reports, and performance reports. The presentation highlights the benefits of these systems and provides a critical evaluation of their integration in organizations. Overall, it emphasizes the importance of management accounting in decision-making and achieving organizational goals and objectives.

Management
Accounting

Table of contents
 Introduction
 Management Accounting Systems
 Management Accounting Reports
 Conclusion
 References

Introduction
Management Accounting is a process through which the managers are
able to ensure that they can take effective decisions. In this presentation,
there will be discussion of management accounting systems and reports.

Management Accounting Systems
Management accounting refers to use of different types of techniques by
the management which aids them in their decision-making as they are
able to perform relevant analysis and interpretation of the given
financial information. It should be used by Prime Furniture's managers
so that they can bring more efficiency and effectiveness in managing the
financial information. There are different types of systems which are
used in Management Accounting. These are explained as follows-
Cost accounting system- In this system there is a detailed analysis on
the various types of costs. This is required so that an organization is
able to perform a proper analysis on the various costs in a highly
effective manner without facing problems and issues. In Prime
Furniture, the management can make sure that they make the right use
of this system so that they are able to analyse the various cost types and
therefore apply the appropriate techniques so that they can be reduced.

Continued...
Essential requirements-
 In this system, there must be the use of right techniques so that the
various types of costs can be identified and therefore the appropriate
ways must be used so that they can be reduced in a highly effective
manner. Thus the managers of Prime Furniture are required to
ensure that this is present in their Cost Accounting System.
 This system has to ensure that the apportionment of overheads can
be made to different departments according to their level of
expenses incurred by them. Thus in this way the management of
Prime Furniture us required to make sure that they can segregate the
overheads in the right manner by making the use of this system.

Continued...
Inventory management system- This system is very useful for the
organizations so that they are able to maintain a proper record of their
inventory in a proper manner without facing problems and issues. By
making its use, the management of Prime Furniture will ensure that it
can maintain the stock level in a proper manner as required.
Essential requirements-
 The use of this system must ensure that the organizations are able to
maintain a detailed track record of their inventory and track their
inflows and outflows of stock by making use of LIFO, FIFO,
Weighted Average Cost Methods. In this way the management of
Prime Furniture will be able to ensure that it maintains the proper
details of the stock.

Continued...
 The use of this method must make sure that the firms can reduce
their costs related with maintenance of the inventory. Thus in
this way the managers of Prime Furniture have to make sure that
they can reduce the costs of inventory by using this method.
Job costing system- This system identifies the job costs related with
the various types of job orders in the organization and thus ensures that
they are identified effectively and efficiently. It ensures that the
techniques are used so that the costs related with job orders are reduced
and the profits are maximized. Thus, the management of Prime
Furniture can make the use of this system so that they are able to
enhance their profits by reducing the costs of job orders.

Continued...
Essential requirements-
 In this system, there must be use of appropriate techniques
through which the costs which are associated with the job orders
can be identified properly. Thus in this way this makes sure that
the Prime Furniture's managers are able to identify the costs in a
proper manner.
 This system must ensure that the costs related with the job orders
is reduced effectively. Therefore in this manner the management
of Prime Furniture will be able to target profit expansion.

Continued...
Price optimization system- The use of this system is very helpful for
the managers in order to help to identify the various methods through
which the prices can be calculated. Thus in this way the management of
Prime Furniture will be able to find out the right prices to be set so that
the profits can be enhanced.
Essential requirements-
 In this method, there must be a use of different mathematical and
statistical models so that prices can be forecasted. This will help
the management of Prime Furniture a lot in setting the right prices.
 The use of this method has to ensure that the managers are able to
target the expansion of profits effectively and efficiently. Thus
Prime Furniture's managers will be able to increase their profits in
the right manner through this system.

Management accounting reporting
There are different types of reports which are
used in Management Accounting. These are
explained as follows-
Budget reports- These reports are used by the
managers so that the organization is able to
prepare a detailed report regarding the various
types of budgets in an effective manner.
Therefore the management of Prime Furniture
can make the right use of these reports so that
they are able to achieve their relevant goals
and objectives. They can find out the reasons
of various types of deviations and variances in
the budgets and make sure that the
appropriate rectifying actions are taken to
remove them effectively and efficiently.

Continued...
Accounts Receivable Aging
Reports- In these reports, there is a
detailed analysis of maintenance of
the track record of the various
Accounts Receivables. Therefore,
the debtors who have not paid their
dues on time are identified easily so
that the reminders can be given to
them for paying their due amount.
Therefore in this way Prime
Furniture's managers will be able to
ensure that they can maintain the
right record of their debtors in a
highly effective manner. Thus in
this way they will be able to
minimize their Bad Debts and will
be able to collect their due amount
from their debtors on time.

Continued...
Cost Managerial Accounting Reports- These reports are used by the
managers so that they can identify the various types of costs which are
being incurred in the organization. The management of Prime Furniture
is therefore required to ensure that they can make use of these reports so
that proper techniques are applied so that the costs are reduced and the
level of profits can be enhanced. Also their usage will help in better
segregation and apportionment of the various types of overheads. This
will create an advantage for the company in the future time period so
that it is able to manage its costs in a better manner.

Continued...
Performance Reports- For the firms, the use of these reports is quite
helpful so that the overall level of performance can be effectively
enhanced. Thus the management of Prime Furniture is required to make
sure that they are used effectively so that the level of overall
performance can be enhanced by the organization. Also if there are any
deviations and variances in the performance then appropriate rectifying
techniques can be used to facilitate the desired level of improvement.
Thus in this way the company will be able to achieve the goals and
objectives.

Benefits of Management Accounting Systems
Cost accounting system is beneficial in identification of the costs and
applying appropriate techniques to facilitate a reduction in the costs.
Inventory management system creates an advantage for facilitating the
reduction in the costs which are related with the inventory. Job costing
system is very useful for facilitating the identification and segregation
of the job orders so that a proper track record of these orders can be
maintained. Price optimization system creates an advantage for
identifying the right prices to be set so that the level of profits can be
enhanced in a highly effective manner.

Critical evaluation of Management
Accounting Systems
There are various types of systems which can be successfully integrated
in the organization. For integrating the cost accounting system there is a
need of identification of the costs in an effective manner and using
appropriate techniques for their reduction. Integration of Inventory
management system will require that a proper system related to stock
maintenance is implemented. Integration of Job costing system can be
done through identification of the job orders and ensuring that they can
be effectively tracked and managed. Price optimization system can be
integrated through using relevant models.

Conclusion
From the above presentation, it can be concluded that management
accounting can be helpful for the managers to be able to achieve the
various goals and objectives. Thus they are required to make their
proper use in the right manner.

References
 Otley, D., 2016. The contingency theory of management accounting
and control: 1980–2014. Management accounting research, 31,
pp.45-62.
 Hopper, T. and Bui, B., 2016. Has management accounting research
been critical?. Management Accounting Research, 31, pp.10-30.

Thank You