Management Accounting and Systems in Brush Electrical Machines

MANAGEMENT
ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Activity 1.........................................................................................................................................3
Management accounting and requirements of different types of system in management
accounting...............................................................................................................................3
Different methods applied in management accounting..........................................................5
Benefits of management accounting and its application........................................................6
Management accounting system and its reporting in process of organisation......................6
Activity 2.........................................................................................................................................6
Range of management accounting techniques & appropriate documents..............................6
Application & interpretation in complex activities of businesses..........................................7
PART B............................................................................................................................................7
Covered in PPT.......................................................................................................................7
CONCLUSION .....................................................................................................................8
REFERNCES...................................................................................................................................9

INTRODUCTION
Management accounting is regarded as a profession that consist of various systems that
are helping in increasing the level of performance in a organisation. There are various
fundamental of accounting system that is applied in the macro environment and is helping
organisations in operating in the environment (Graybeal,, Franklin and Cooper, 2018). The
present report is based on Brush electrical machines that is involved in manufacturing of
electrical generators (Cooper, Ezzamel, . and Qu., 2017). Accounting tools are used in the
process such as techniques of cost analysis, income statement can be applied for purpose of
making comparison and respond to different types of financial issue arising in course of
business.
PART A
Activity 1
Management accounting and requirements of different types of system in management
accounting
Management accounting: It can be regarded a type of managerial accounting that is used by
managers in the overall process of decision making. It is used internally in companies as a
statistical data for the purpose of further decision making (Yaacob and Nahar, 2017). It consist of
various methods and techniques that are used for evaluation of overall organisation performance.
In Brush Electrical Machines there are some application of management accounting that is used
for process of planning and creating a strategic management base.
There are certain requirement of management accounting as discussed below:
 Presenting the financial position: There are various types of system of management
accounting that are used by managers in a organisation that is helping them in
presentation of their financial statements (Weetman, 2019). Data is collected from
various systems that are used for making decisions.
 Allocating of resources: There are different types of inventory system of management
that is helping managers in maintenance of optimum stock level in a organisation. EOQ
is a technique that is commonly applied in various business organisation for providing

information to the management and helps them in identifying the order of stocks for
maintenance of appropriate inventory level (Bromwich, and Scapens, 2016).
 Budgetary control: It is also a very significant tool that is used for the purpose of
identification of risks that are associated with project of company. It is used for the
purpose of formulation of plans that are prepared in order to avoid any contingency of
risk that can occur in further course of operations (Thabetand Alaeddin, 2017).
Below discussed are some of tools that are adopted by Brush Electrical machines on their
process of decision making:
 Inventory management: It consist of a combination of technology and procedures that is
used for the purpose of monitoring, maintaining of stocks such as assets in company,
finished products, raw materials etc. all this is used so that if there is any imbalance in
supply and requirements that can be managed effectively(Dumay, and Rooney, 2018). In
Brush Electrical Machines this techniques has been adopted for purpose of maintaining
assets record, item location, supplying of information and generation of value stocks.
 Cost accounting system: It is also commonly known as a product costing system it is a
structure that is used by various business in order to control their cost, value stock and
make a profit analysis (Quattrone2016). In Brush Electrical Machines it is used for
accurate estimation of cost to calculate profit margins and different operational areas for
preparation of financial Statements.
 Job costing: It is a type of costing methods that is used for execution of some specific
customer orders. It depends on number of orders that are present for a company so that
there is timely delivery (Granlund, . and Lukka, 2017). In Brush Electrical Machines this
system is helping in discovering the are that is profitable for the the organisation. It is
done in below discussed some of steps:1. Receiving of enquiry: In this customer views related to product quality is collected and
further time for completion of work is estimated.2. Estimation of prices: Prices are determined based on customer preferences3. Receiving of orders: After customer is satisfied they place a order.4. Recording of cost: In this step cost associated with each step is recorded
5. Job completion: Final report is handed over to finance department and accounts
manager that is helping in calculation of final costing.