Management Accounting Research Insights

This assignment requires a comprehensive review of the provided sources on recent developments in management accounting research. Key themes to focus on include domain and method theories (Lukka & Vinnari, 2014), interventionist research (Suomala et al., 2014), impact of enterprise systems (Vakalfotis et al., 2013), strategic management accounting (Ward, 2012), and environmental management accounting (Vasile & Man, 2012). Analyze these themes, discuss their implications for future research, and prepare a well-structured report.

MANAGEMENT
ACCOUNTING

Table of Contents
REPORT..........................................................................................................................................1
Subject:- Management Accounting system which help to produce a report which is very much
useful for the business. ....................................................................................................................1
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
P1 Management Accounting and different type of management accounting.............................2
P2 Different method for management accounting reporting.......................................................4
TASK 2............................................................................................................................................6
P3 Calculation cost and make income statement with help of marginal and absorption cost.....6
TASK 3............................................................................................................................................8
P4 Advantage and disadvantage of different planning tool for the budgetary control...............8
TASK 4..........................................................................................................................................11
P5 Management accounting system and it also respond to financial problems as well............11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

REPORT
From:- Management Accounting officer
To:- General Manager of company
Subject:- Management Accounting system which help to produce a report which is very much
useful for the business.

INTRODUCTION
Management accounting is that which indicate for financial information and it also
support the managers in bringing a effective decision for company so that they can perform in
better manner too. Accounting of finance scenario make firm to invest their money from where
the revenue can be obtained even in right context as well (Albelda, 2011). Moreover the
enterprises are also using various technologies and such thing make them to save their important
information related to finance at one place. Unicorn grocery is such firm which is working at
small level and having a motto of offering better products to customers according to there
demands and needs as well. Assignment will include the financial system and report which can
be adopted by company and it also considers the methods which is used by managerial team to
calculate the various cost and although help in making of income statement. Advantage and
disadvantages is also being included to control their budget and management accounting is also
used to solve the various financial problems of firm.
TASK 1
P1 Management Accounting and different type of management accounting.
Management accounting is a process which prepare reports and accounts that provide
accurate and timely information about finance and statics which help managers to take decisions
according to that. It helps in generating reports on monthly or weekly basis which keeps the
organisation up to date. These reports mainly consists of transaction, cash inflow and outflow,
revenue, state of account payable and receivable, any kind of debts, raw material and inventory
purchase and others statistics (Arroyo, 2012). These facts and figures help organisation to
formulate strategies so that they can maximise their benefits and improve its performance. It also
reflects the actual financial position of firm and prevent it form any fluctuations resulting in loss
of money.
Management accounting involves designing and preparing reliable reports which leads to
accomplishment of short term as well as long terms organisational goals.
Unicorn Grocery is a grocery store situated in Manchester, England. They have economic
products range and is one of the largest independent wholefood groceries In UK. They use bulk
purchasing from manufacturers which is very cost effective provide benefits to firm. They
regular manage their accounts and reports which keep them updated. The company maintain

their balance sheets, ledgers, profit loss statements etc which give accurate idea about financial
situation of the firm, whether company is in loss or gaining profits. Managers of firm are highly
burdened as they are largest seller and have to maintain their accounts in effective manner by
maintaining it and evaluating it on regular basis (Becker, Messner and Schäffer, 2010).
Types of accounting system are:
 Cost accounting system- This system is also known as product costing system or costing
system. This framework is used by managers which helps them to estimate cost of their
products for the purpose of profitability analysis, inventory valuation and cost control.
Managers of Unicorn groceries use this system to estimate their cost of their groceries
and analyse their profits.
There are two main cost accounting systems which are used by managers. They are:
◦ Job order costing.
◦ Process costing. Inventory management system: Inventory or stock which represents business's stocked
goods or material. They are either used to do a job or can be referred as inputs used in
production process or any products that is sold to customers. Management of inventory
combines the usage of desktop software, barcode scanner, barcode printers and mobile
devices to streamline inventory management (Bennett, Schaltegger and Zvezdov, 2013).
Examples are: goods, stock, supplies, consumables. Firm uses this system to improve
inventory accuracy, company workflow and company's bottom line. Job costing system: This is a process of collecting information about costs related with a
specific production or service job. This type of information may be required in order to
submit cost information to a customer under a contract where costs are compensated.
Information which is required for accumulation are direct labour, direct materials and
overhead costs. Basically, cost directly affects in that situation when products which are
manufactured differs from other company products. Price optimization system: This system include mathematical programs that help in
calculating demand which varies at different price levels, then data are combined with
accurate information on costs and inventory levels to recommend prices of product that
will maximise profits. It include three critical pricing elements (Bodie, 2013). They are
pricing strategy, value of product to both buyer and seller and tactics adapted to manage

all elements which impact on profitability. Firm uses this system because it help them
with promotional pricing and discounted pricing.
Importance of management accounting are: Business efficiency: Management accounting increases the efficiency of business. Proper
maintaining of records helps in achieving short term and long terms goals of firm in
effective manner. Determine aim: Record help in deciding goals for present and future situations and
determine routes to achieve that. Provide management control: Tools and techniques which are used in management
accounting helps the firm in planning and coordinating business activities in effective
manner.
Maximum profits can be obtained: By proper maintenance of account records help the company
to increase their profits. They gives all information related to finances of firm. To get maximum
profits, strategies should be made according to market criteria and then formulating pricing
strategies.
P2 Different method for management accounting reporting.
The term of management reporting can be defined as an organized process which provide
knowledge about role of management so that organisation can modify for analysing necessary
responsibility centre. This aspect will render help in making appropriate decisions for actions
which are important for company. It is essential to formulate and develop accounting practices to
achieve better growth of business (Boyns and Edwards, 2013). The term accounting management
is quite different from financial accounting so thy need to maintain report of unicorn grocery
firm to their stakeholders. The company have to appoint managers who has ability to perform
their task for getting correct result or outputs which facilitate to attain desired prospects. This
assignment is taking all prospect of knowledge that can be recorded from every sector of
company like marketing, operational, financial, human resource and so on. The Unicorn grocery
firm investors need to examine such Aspects and reports for building critical decision procedure.
There are several kind of organisations who want to attain future stability and
development. These prospects are based on such information about each and every sector to
make or design to conduct procedures in firm. Previous data of firm should be recorded and
maintain to make better decisions for future aspects. This may facilitate to avoid previous

mistakes and issues to gain better benefits in company. The Unicorn grocery firm have to collect
data of financial knowledge by support of stake holders. They can utilise several records such as
cash flow statements, balance sheet and income statements to study for making appropriate
investment plans or policies.
Every organisation have to attain various kind of goals or objectives like they want to
gain maximum return with help of making investment in projects (DRURY, 2013). There are
various related aspects of financial activities and perform transaction by Unicorn grocery firm
within a year. These must be recorded in data of information systems to determine actual
position of an enterprise to compare with others. An organisation required to attain long term
goals by using reporting system method.
Benefits of reporting systems Role of control system:- The Unicorn grocery firm have to first set its goals or objectives
to make accurate plans for execution. It includes function of manager because they need
to identify desirable targets for firm to achieve by efforts of staff members. These reports
are able to calculate actual performance of workers in respect for targeting budgets.
 Useful in profitable operations:- These reporting systems helps to determine actual
direction of moving towards operational activities. Management can render various
information and records to gain profitability to their expected workers.
Types of reporting systems Account receivable report:- This system is able to provide information about unpaid
clients and mentioned bills. It will facilitate to such kind of techniques which may utilise
for analysing payback period of time for outstanding debts cost. Job costing report:- This term may includes each and every expense of manufacturing
activities to generate bulk of units. It also considers the salary and wages of labour whop
were involve in operational procedures. This reporting systems have target to recognise
total cost of manufacturing which need to be invested by Unicorn grocery firm for
specific product.
Performance reporting system:- According to this procedure, the Unicorn grocery firm's
financial statements can be analysed in such manner. By which they become able represent
outcomes of staff members as well as organisation (Harris and Durden, 2012). It may involves to
study about accounting information of company and employees working there to create regular

outcomes. Evaluation can be done by collecting right knowledge from previous and current
years.
TASK 2
P3 Calculation cost and make income statement with help of marginal and absorption cost.
Cost: This is that which is being invested by company in form of money to manufacture
the product and services in quality manner for attainment of their goals and objectives too.
Normally it can said that there is value effort in this like monetary terms and raw materials as
well for the delivery of various or several goods.
Generally, it is such term which also shows the various summarize form of estimation in
total cost which is also associated with the specific and the small project which can make them to
perform even in better manner too. Moreover, this is that which also include the variable cost and
this is also being fluctuated with the several kind of activities or it can be said that changes can
be done with many other factors as well (Herzig and et. al. 2012). Unicorn groceries is that
which also focus on the various transaction and also control their several expenses as because
they are those which affect their decisional process. Moreover there are few techniques of
costing and thus it makes company to identify the profit level of organisation to. Those methods
are as follows:
Absorption cost: Expenses are that which is related with the production department and
it also includes the services which are done in better manner and thus all such are included in this
category only. It is like variable costing and also has the fixed cost too which help organisation
to make their working in better manner as well. Therefore, firms also use various types of tools
and it is like adopting by firms to have calculations of products and it also consider the
overheads with direct prices as well. Although this is that which somewhere also include the
various criteria and it is quite useful for better decision and can be used to reduce the wastage in
effective manner.
Marginal Costing: That cost which is occurred in organisation which is used to
manufacture one extra unit and also use of product although this is like having corrective
decision as well (Kihn, 2010). Example:- if the cost is charged according to the per unit which
can be used to have a greater and marginal cost for producing various things like additional unit
and which can make them to have effective work for selected firm and it makes company to

produce unit in better manner. In this cost is also related with the labour and raw material as
well, although this is also being used to have a manufacturing of additional part of the product as
well.
Therefore, the comparison of marginal and absorption costing is also described in right
context and it is like:
Absorption cost Marginal cost
According to the costing, expenditure is like in
which the Unicorn groceries is investing and
also making examining entire cost as well
which Is also consumed to have a
manufacturing of team in organisation.
Moreover, the cost is that which is also being
valued to have a production process in better
manner as well.
The best thing about this technique is like
eliminating the cost per unit in better manner
with producing the extra unit.
Alteration is not there of per unit and it also
due for the availability of different additional
unit.
Although it is like which is linked with long
term planning and it also have to make a
process and costing as well.
This method is somewhere used when the
planning is done for short term and making a
formulation as well.
Moreover, it is like absorption cost is not
appropriate and somewhere not suitable for the
decisional process
Although it is like most of the managerial thing
are like utilizing the tool and also help them to
make a better decision in organisation too.
Therefore, sustainability is that which is totally
somewhere based on the extrinsic prospect and
of reporting system.
Although thus it is like and fully linked with
the intrinsic reporting system as well with
upcoming development of the things with
profitability as well.
Figuring of Gross profit by adopting absorption costing
Income statements
Particulars Amount
Sales 35*500 17500

Less:
Production cost 6+5+2+3 = 16*500
8000 8000
Gross profit 9500
Less:
Variable sales overhead 500*1 500
Selling and administrative cost expenses (800+400) 1200 -1700
Total Profit / Loss 7800
Calculation with the use of marginal costing
Income statements
Particulars Amount
Sales 35*500 17500
Less:
Production cost 6+5+2 - 7800
Closing stock: 100*13 - 1300 -6500
Contribution 11000
Less:
Variable sales overhead 500*1 500
Fixed overhead -1800
Selling and administrative cost expenses (800+400) -1200 -3500
Total Profit / Loss 7500
Moreover, this is such which help company to make various better strategies and decision
so that organisation can attain their goals and objectives in better manner. Somewhere the
income statement also make them to have a proper working in firm as well (Kotas, 2014).
Therefore company will look forward to reduce the expenses and cost of production so that profit
can also make it maximum as well.

TASK 3
P4 Advantage and disadvantage of different planning tool for the budgetary control.
Budget: It is bright document which is considered of financial information of the specific
time period which can make them to include the facts and figures as well in better manner too.
Normally, it also determine or identify the several cost which organisation make in investment at
a time of production of qualitative product and service. Moreover, it is related with the
operational department and also throw light on various overall plan which make a capital
investment as well (Lukka and Vinnari, 2014). Generally, it is quite prepared for the a single
year and it is being followed by management of organisation with the shareholder too also can
make changes if the needed result is not achieved or working is not being done in better manner
as well. Apart from all such, it also include like planned sales volume and income too, type of
resources is also include which make them engaged in their producing goods and services as well
with costs or expenses with overview of different things like variables and it also involves the
producing product at various level and in quantities as well.
Budgetary control: This is being considered as the tool which also make management in
better manner and thus it also look for business operation and is as; planning, assessment and
cooperation in right context too. Mainly it can be linked with various numbers and things which
can be classified into the several sections and it is known as budget Centre (Lukka and Vinnari,
2014). Although, it also guides managing team or method like technique which help to handle
the several resources without taking the additional cost:
 Acquiring suggestion and from concern managers: It is that which consider the
different thing and like it also make them to analyse the information and proper way, also
includes several required data for the handling cost in right context as well. Normally, it
has seen that it is quite related with the development of company (unicorn grocery) in
better manner too.
 Implement the effective suggestion: Moreover, feedback is like having a managerial
team and they are responsible for designing the accurate thing with prevention of
company with losses which can occur with organisation anytime as well. Although, they
also include the things like planning which can be regulated with future activities or the
additional expenses as well and it is that prices are going to also include like incurred by
firm in better manner too.

 Determine fixed enterprise data for budget: According to such only, the process is that
which make an efficient list of various data and things like relevant evidences and it is
like the assembled with the different operational department (Macintosh and Quattrone,
2010). Apart form this, it will also make managers to bring an effective plans which can
make them to design the plans as according to the standards of company in better manner
too.
 Monitoring or measuring data with budget: The managers are those who monitor
everything and performance of the unicorn Grocery which help to use the accurate or
summarize form and to make it for comparing the different project with first one.
Moreover, it is going to support the association as well and this thing estimate the actual
probability in better manner with development chances too.
 Planning tools: This is that which determine an enterprise for the future direction and in
order to attain their organizational goals and objectives too.
◦ Forecasting tool: This is considered as assumption and somewhere it is encouraged
with the management skills, learning and also include decision making process in
better manner too.
▪ Advantages:- Unicorn grocery has to make identification of goals. As a result they
have to go for result which support the managerial team in better manner and also
look for knowing cost or sales which they also acquire in coming time period as
well.
▪ Disadvantages:- Absence of summarize estimation of expenses and making and it
is quite incurred in organisation with time period in great way. If expenses are
found more then the total cost then it may manipulate the company goals.
◦ Scenario tools: This is something in which supervisor of company (unicorn grocery)
evaluate the close substitutes in better manner and even though they also do such
according to situational demand. Mainly it is quite used at a time of planning,
functional as operational too.
▪ Advantage:- Moreover, the tool is like management of company can easily
acquire the different thing like necessary ideas about the selection, opportunity
and having implementation of various scenario as well.

▪ Disadvantage:- If accuracy is not there then it can be said that they are not
somewhere suitable for the selected firms as because they consume more time
period as compared to the different tools.
◦ Contingency planning tool: Method is that which is used to uplift different thing of
unicorn grocery for also looking for acting in a better way and also can go with
various difficult circumstances as well.
▪ Advantage:- Moreover, this is that which also lead to reduce or decline the
additional cost in better manner and thus beneficial for the selected firm in correct
way and it also make ait to minimize the losses as well.
▪ Disadvantage:- The biggest disadvantage of this thing is that it is a complicated
plan.
TASK 4
P5 Management accounting system and it also respond to financial problems as well.
Moreover, like relevant information it has been made to analyse unicorn grocery like
having firm and they also face various and several financial issues while making performance in
their business activities which is like raising the financial year as well. This is that which is very
much associated with the various department of company as operational, investing and the
accounting as well (Otley and Emmanuel, 2013). Generally it is like having and identifying the
barriers which also raise due to making absence of the effective plans and also policies with
tools/ technique which is necessary for them to have measurement of result and it is quite based
on monetary terms as well. Moreover, having like analysis of various methods, it is there that
they goes with determining and identifying the budgetary process which somewhere the most
suitable mode and it also leads to control while making overall, enterprise operation as well.
Unicorn grocer is that which is used to have tool and make the control over order and make a
regulation with cask inflow or outflow, and it is like making utilization of enterprise for getting
maximum benefits as well.
Price:- Moreover, it is required by company to set such prices at the lower level which
can make customer to buy their product and services even in better manner too. Although with
this quality thing is also being offered in great way, even though it is there for the next time too.
More prices for their services will make them to have ignorance of different services of unicorn

groceries and this will make them to have other company with the lower prices which also make
them to have better quality is not well.
performance appraisal:- Although, employees of unicorn groceries and thus it is
working in efficient way and it has to be done in better manner as well with this the employees
do working hard and converting the company to provide the proper rewards to human resource
as well (Parker, 2012). As this has to make the firm although this is to have provide having a
great appraisal in effective manner as well.
KPI:- Key Performance indicators which is being denoted with having a most proper
mode and adopted thing like selecting the enterprise like monitoring the difference in
performance and association which as well and staff members too.
Benchmarking: It is like calling the system with the managerial department and having a
fixed with the standard result into the operational group and it also motivate them towards like
professional targets and aims.
Financial governance: Rules and the regulations are that which is being used to design
the governing bodies in better manner and thus it also make them to fall under the different units
and even in industries as well which help them to run their business in great way and in smooth
way too (Suomala, Lyly-Yrjänäinen and Lukka, 2014). Although company do also has
responsibility to ensure and to know that which trading things are there which occurred without
having any exploitation of many things as well.
This, is that it is being analysed by management accounting plays, they have a major role in
resolving the issues and the business problems in various ways and it is quite described with as
follow:
 It is required to attain an use the above explained tools and techniques which can help the
organisation in removing the business issues even in better manner too.
 Looking forward to hire the skilled and knowledgable employees so that effective
working can also be seen.
 It is required to follow the rules and regulation which is designed by the governing bodies
too.
 Moreover, looking forward to create and make a environment which is free from various
issues like conflict and disputes as well.

 Using of technology in better manner so that effective an fastest work can be there in
organisation.
CONCLUSION
From the above report it has been concluded that, project is that management accounting
is like and this also consider the various things like having tools and support with small and large
enterprise in managing various things with day to day operation like business operation. Under
this assignment and number of the effective data or having evidences and related to financial
system, report taking is that having a determine for making a proper decision in right context too.
Therefore, various tools are used for controlling the additional expenses and this is such which
has incurred in enterprise which help in accomplishing the business activities in best way.
Furthermore, projects are those which shows various numbers of like tools and techniques and
expressed by the accounting system as well. At last, it has been analyse that unicorn grocery is
that who is following the proper procedure of working and also removes the extra wastage and
make firm to get succeed and earn higher profits with attainment of goals and objectives.
REFERENCES
Books and Journals
Albelda, E., 2011. The role of management accounting practices as facilitators of the
environmental management: Evidence from EMAS organisations. Sustainability
Accounting, Management and Policy Journal. 2(1). pp.76-100.
Arroyo, P., 2012. Management accounting change and sustainability: an institutional approach.
Journal of Accounting & Organizational Change. 8(3). pp.286-309.
Becker, S.D., Messner, M. and Schäffer, U., 2010. The evolution of a management accounting
idea: the case of beyond budgeting.
Bennett, M.D., Schaltegger, S. and Zvezdov, D., 2013. Exploring corporate practices in
management accounting for sustainability (pp. 1-56). London: ICAEW.
Bodie, Z., 2013. Investments. McGraw-Hill.
Boyns, T. and Edwards, J.R., 2013. A history of management accounting: The British
experience(Vol. 12). Routledge.
DRURY, C. M., 2013. Management and cost accounting. Springer.
Harris, J. and Durden, C., 2012. Management accounting research: An analysis of recent themes
and directions for the future. Journal of Applied Management Accounting
Research, 10(2), p.21.
Herzig and et. al. 2012. Environmental management accounting: case studies of South-East
Asian Companies. Routledge.
Kihn, L.A., 2010. Performance outcomes in empirical management accounting research: Recent
developments and implications for future research. International Journal of
Productivity and Performance Management, 59(5), pp.468-492.
Kotas, R., 2014. Management accounting for hotels and restaurants. Routledge.

Lukka, K. and Vinnari, E., 2014. Domain theory and method theory in management accounting
research. Accounting, Auditing & Accountability Journal, 27(8), pp.1308-1338.
Lukka, K. and Vinnari, E., 2014. Domain theory and method theory in management accounting
research. Accounting, Auditing & Accountability Journal. 27(8). pp.1308-1338.
Macintosh, N. B and Quattrone, P., 2010. Management accounting and control systems: An
organizational and sociological approach. John Wiley & Sons.
Otley, D and Emmanuel, K. M. C., 2013. Readings in accounting for management control.
Springer.
Parker, L.D., 2012. Qualitative management accounting research: Assessing deliverables and
relevance. Critical perspectives on accounting. 23(1). pp.54-70.
Suomala, P., Lyly-Yrjänäinen, J. and Lukka, K., 2014. Battlefield around interventions: A
reflective analysis of conducting interventionist research in management
accounting. Management Accounting Research, 25(4), pp.304-314.
Vakalfotis, N., Ballantine, J. and Wall, A.P., 2013. A literature review on the impact of
Enterprise Systems on management accounting.
Van der Meer-Kooistra, J. and Vosselman, E., 2012. Research paradigms, theoretical pluralism
and the practical relevance of management accounting knowledge. Qualitative Research
in Accounting & Management, 9(3), pp.245-264.
Van der Stede, W.A., 2011. Management accounting research in the wake of the crisis: some
reflections. European Accounting Review. 20(4). pp.605-623.
Vasile, E. and Man, M., 2012. Current dimension of environmental management accounting.
Procedia-Social and Behavioral Sciences, 62, pp.566-570.
Vasile, E. and Man, M., 2012. Current dimension of environmental management accounting.
Procedia-Social and Behavioral Sciences. 62. pp.566-570.
Ward, K., 2012. Strategic management accounting. Routledge.
Online
Advanced Management Accounting. 2017.[Online]. Available through:
<http://www.bristol.ac.uk/efm/courses/undergraduate/units/level3units/
efim30003.html>.