Management Accounting Systems & Techniques

Management Accounting
Systems & Techniques

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different type of management accounting system................................................................3
P2 Different type of management accounting reports.................................................................5
TASK 2............................................................................................................................................5
P3. Range of management accounting techniques......................................................................5
TASK 3............................................................................................................................................9
P4.Planning tools used in management accounting.....................................................................9
P5. Comparison of organisations adapting management accounting to respond to financial
problems....................................................................................................................................10
CONCLUSION..............................................................................................................................12

INTRODUCTION
There is a critical need for an effective professional management structure in the current market
situation that can monitor the valuable activity of the organisation to improve business
productivity (Collis and Hussey, 2017). Management accounting is define as an important
system for evaluating, monitoring, and handling valuable financial information within a system
in order to achieve a strategic choice by some company president to improve and grow profits
over a given period of time. The entire expense or management accounting process begins with
the compilation, reporting, estimation, evaluation, review and distribution of useful business
financial information that helps reach the required objectives over a predetermined amount of
time. To better explain the meaning of accounting administration, KEF LTD, a production firm,
is chosen.
This research illustrates understanding of multiple processes and reports, estimates the
cost of output per unit, budget period P&L accounts, etc. by applying useful valuation models. In
addition, the study further explores the use of multiple forecasting tools used in reporting for
management and how different frameworks help support the business strategy.
TASK 1
P1. Different type of management accounting system
The principle of MA is known to become an internally fitting method in the company
sense that facilitates the estimation or evaluation of the total output of various groups inside the
company. Typically, supervisors set criteria for performance assessment, evaluating several
methods that promote the accomplishment of established targets also help to determine real
explanations for variations from the current plan (Schaltegger, Burritt and Petersen, 2017). In
corporate words, MA typically provides the management and then all organisation personnel
with the non-financial as well as financial evidence that allows them create the most correct
decisions to maximise revenue, competitiveness and meet targets. There have been numerous
important managerial accounting systems that support KEF Ltd's management, which are listed
below:
Inventory control system: This program provides handle company stock in the
necessary quantities, transacted products and final product. There have been different methods
such as FIFO, LIFO and Average methodologies for regulating company shares which provide

the confidence of the business process. In KEF Ltd the FIFO approach is used though they are
necessary to eliminate old products using this approach and thus reduce damage due to defective
products. First of all, KEF Ltd helps KEF Ltd to produce products according to markets and
customer likes and dislikes, helping to increase profit.
Essential requirements: The manager establishes supplies and storage of commodities
through a coordinated supply chain structure with KEF Ltd. This relationship aims to effectively
and effectively reduce the costs for repair and marketing of goods.
System of cost accounting: This is used to calculate the cost of that same total
manufacturing of specific company’s products. It essentially entails multi-level gross costs which
also requires fixed costs that help decide the benefit. Useful accounting expense approaches such
as median and absorption costing, lean costing, operation as well as the regular costing approach
are applicable. ABC stock valuation technique is used in the respective firm that basically
allocates overall cost to items related to the production of goods (Humphrey, C. and Miller,
2012).
Essential requirements: This measure is helpful for the management of KEF Ltd as it
will determine products that are more costly again and determine whether they really worth a
huge amount or if they should obtain meaningful market shares.
Job Coasting system: This approach primarily records the costs associated with the
production of good management within the company. It helps to delegate production costs to
every other commodity, and the product manager and auditor have proof of each given product
category. This system also supports the calculation of the cost of different products produced by
the company over the same amount of time. In KEF Ltd, therefore this system helps to assess
and evaluate the cost of different helpful company’s products to reach the demand of the
consumers.
Essential requirements: This MA scheme is needed to monitor the expenses of works
with HEF ltd along with wrapping and delivery, through Innocent items. The organisation
employs cost-per-take methods to calculate its expenditures.
Price optimization system: This is regarded to just be the company's greatest system as
it helps to understand the consumer's response to the manufacturing sales volumes fixed by the
organization. Used by managers to set decent product prices that will make customers happy as