Management Accounting System: Tools and Techniques

Running head: MANAGEMENT ACCOUNTING SYSTEM
MANAGEMENT ACCOUNTING SYSTEM
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Author Note

MANAGEMENT ACCOUNTING SYSTEM1
Executive Summery
The aim of this report is to analyse the various concept of management accounting system.
the report contains a broad discussion about management accounting system by comparing
two journal articles which are related with the issues that are related with management
accounting. A brief detail of both the articles has also been discussed and the report is
concluded by giving a detail of the outcome of both the articles.

MANAGEMENT ACCOUNTING SYSTEM2
Table of Contents
Introduction....................................................................................................................3
Answer to Question 1: -...................................................................................................3
Answer to question 2.......................................................................................................5
Answer to question 3.......................................................................................................7
Answer to question 4.......................................................................................................9
Conclusion....................................................................................................................11
References....................................................................................................................13

MANAGEMENT ACCOUNTING SYSTEM3
Introduction
Management of any firm needs various information to make a sound and profitable
decision for the organisation. Appropriate business-related information is must for the
management of firm to efficiently execute their role and functions. Managing accounting is
not depends on the single aspect of the firm while the mangers needs to meet all the other
aspect of organisation. Hence, management accounting is a bunch of various methods. Hence,
the methods of management accounting are divided under the various groups. Those groups
are financial accounting information, cost accounting information, future information and
likes. All the different tools of management accounting are classified in the above stated
group in the basis of their relativity.
Answer to Question 1: -
Different type of management accounting methods
The followings are three major and commonly used management accounting tools and
techniques: -
Historical Cost Accounting
It is one of the most commonly used tool of management accounting. This is used by
the manger to evaluate the costing system of the firm. In this tool the cost are recorded after
being they actually incurred. Hence, this helps the management of the firm to evaluate the
performance of the organisation by comparing the actual cost incurred with the expected cost
of the firm. This technique of management accounting mainly involves two methods. Those
are job costing and process costing (Berg and Osestad-Røvik 2019). This analyse the current
performance of the firm in the basis of historical cost.