Management Accounting and Reporting: A Comprehensive Guide

MANAGEMENT
ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1 Define management accounting and provide important requirements for various types of
accounting systems.................................................................................................................1
P2 Describe various techniques used for reporting of management accounting....................3
TASK4.............................................................................................................................................5
P5 Compare applications of management accounting systems by organisations to deal with
financial problems..................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Management accounting is application of knowledge and skills for preparing accounting
information so that it helps management in policies and plans. For this project Agmet has been
selected which involved in the manufacturing aspects of chemical products. This report will
provide deeper insight about elements and reporting associated with management accounting.
Further, it also depicts how management accounting systems can be used for responding
monetary issues.
TASK1
P1 Define management accounting and provide important requirements for various types of
accounting systems
Management accounting: It can be state as process of giving information related to
finance and resources which are used in making decisions. This type of accounting provides data
to internal team of business so that accurate decisions are taken to plan, organise and control
activities and operations of organisation. The main objectives of management accounting is to
explore internal information and provide results to management of Agmet to make important
decisions (Abosede, Obasan and Alese, 2016). Some of essentials requirements before applying
management accounting systems are as follows:
Management Accounting Systems: It can be explained as system of various aspects of
business that are included in management accounting so that it provides information to make
decisions, analyse costs, costing techniques, pricing policies and inventory management. Here
are some of systems with their benefits and applications in Agmet:
Cost Accounting Systems: This costing system is kind of framework use in finding out
cost of products by businesses. This information is use in valuation of inventory, profit analysis
and controlling cost. It measures and record estimated outcomes with actual results to provide
base for evaluation of financial performance and thus applied to measures efficiency. Benefits of
this accounting is that it gives analytical tools to Agmet such as marginal, standard and operating
costing, inventory and budgetary control (Andersén and Samuelsson, 2016).
Inventory Management: It refers to systems in which control in storing stock is done, this
includes raw materials, work-in-progress and finished products. It ensures that there is no
1