Management Accounting Principles, Techniques and Methods for Business Growth and Success

Management
Accounting

Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
An explanation of the principles of management accounting.....................................................3
The role of management accounting and management accounting systems...............................4
The use of techniques and methods used in management accounting by presenting
calculations for an income statement using variable costings to show how these financial
reporting and statements support business growth and success..................................................6
Evaluation of how management accounting is integrated within the organisation.....................9
The benefits of the function to the organisation..........................................................................9
Conclusions that critically reflect the application of management accounting.........................10
PART 2..........................................................................................................................................10
Compare and contrast three planning tools used in management accounting, indicating how
effective you judge each to be and why. Your judgements should be supported by examples to
demonstrate advantages and disadvantages..............................................................................10
Using specific case studies as examples, compare ways in which management accounting is
applied, the effectiveness of management accounting in dealing with financial problems and
preventing financial problems in organisations........................................................................13
Provide conclusions and recommendations to the organisation on which methods to apply in
order to achieve sustainable business success, based on your findings and evidence provided.
...................................................................................................................................................14
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Management accounting is the documentation, review, selection and processing process
efficient analysis of company documents by which managers settle about the best solution for
company. The middle-sized company Innocent Drinks which produces juice and smoothies is
selected to recognise the MA idea. MA also learned business accounting administration or
operations. The rate, inventory and work expense accounting framework where described in this
paper. This article includes the ways in which business reports are structured and how expenses
are measured using fixed and termination rates. It takes into account the advantage and downside
of forecasting methods through the use of MA techniques to solve the financial market challenge
to accomplish targets and to deliver cash flow efficiently to ensure long-term viability in the
economy.
PART 1
An explanation of the principles of management accounting.
Management accounting activities include business goals such as recognising the financial
implications of organisational decision making, monitoring investment and optimising profit.
MA concept concerns the nature of financial data processing, records and expectations,
management inadequacy, incremental absorption costs and accounting methodology comparison
(Epstein and Lee, 2015). Innocent Drinks uses valuable MA method for making the correct
decision is mentioned below:
Inventory management system: The IAS plays a significant role in the regulation of
keeping expenses and sales of the company of Innocent Beverages. Manager will create
stockpiles and inventory of goods using a centralised supply chain management system.
Corporate goods are generally the household products that are difficult to put on sale, even
though they are distributed in shops and delivered from the manufacturer on request. This
association helps in reducing the cost of maintaining and promoting products quickly and
efficiently.
Job costing system: This MA method is software that discusses the costs of each operation
undertaken by an organisation (Drury, 2013). To track and control the spending of the company,
each expenditure collection is then analysed to assess the volume of expenditures generated
within it. This MA system is required for Innocent products, which helps this management team

to watch the costs of jobs such as wrapping and distributing. In able to identify its spending, the
company utilizes cost-per-take methodologies.
Cost accounting system: This system is necessary which businesses use to quantify the
costs related to the manufacture and selling of their products. This accounting metric is useful for
Innocent product management since it can assess which products are more price-involved, and
then it can decide whether they are actually worth spending a large portion or if they can gain a
considerable market share. This approach is often used by the business to calculate the value of
its products and to choose the range of products that is more efficient and competitive on the
marketplace.
Price costing system: This model of communication relies on a technique based more on
economic principles than on research and machinery (Hiebl and Richter, 2018). Innocent drinks
would need this initiative because even if, management set the standards on all their products in
a really way as to result in increased profits on the business which could also be a product with
the top importance for its efficiency, such that customer satisfaction can also be achieved.
The role of management accounting and management accounting systems.
MA records seem to be the documents produced by the collection of accounting information
within these documents so that managers can explain their proposals and actions as evidence of
policy growth. Different documents are published within MA of innocent drinks which serve as
financial management techniques since these papers are the method to help implement the
accrual accounting. These are discussed below:
Cost accounting report: This cost financial analysis process aids a corporation in
conductiThe benefits of the function to the organisation.ng its audit mission seamlessly,
since this research is created in an expense framework where almost all prices of each goods of
the company are listed (Jermias, Gani and Juliana, 2018). This report provides Innocent drinks
administrators with pricing of all the delivered products from the business and divides all other
things by static, semi-variable and also fixed operating expenses to assist in decision-making.
Performance report: This is one of the most important MA document not correlated with
numerical sales or expense concerns but correlated with growing employee productivity in a
sector. This research is generated by the HR department of a company, which focuses on the
performance reviews of the 360-degree staff. Innocent drinks sees their staff person as perhaps
the most important resource through which they establish this report to determine the