Management Accounting Systems and Reports

This presentation provides an overview of management accounting systems and reports. It covers topics such as the difference between management accounting and financial accounting, types of management accounting reports, benefits of management accounting systems, presentation of financial information, and integration of management accounting systems and reports. The presentation is based on the case of Prime Furniture Limited.

MANAGEMENT
ACCOUNTING
TASK 1.

TABLE OF CONTENT
 Introduction
 Management accounting systems
 Difference between MA and FA
 Management accounting reports
 Benefits of management accounting systems
 Presentation of financial information
 Integration of MAS and MA reports
 Conclusion
 References

INTRODUCTION
Different types of accounting activities are there from which
management accounting is the most essential element. With
the help of this managers effectively develop an internal
report which aid them in taking better decisions. In the
present power point presentation Prime furniture limited is
chosen as the base company. This presentation includes
detailed discussion about various types of accounting
systems as well as methods of reporting.

CONT…
 Management accounting is the presentation of accounting
information for developing policies that is to be adopted by
the higher authorities that will help in day to day activities.
In addition to this, it assist management to perform all
activities and function involving effective planning,
organizing, directing and controlling as well.
 Management accounting is defined as the application of
professional knowledge, concept as well as techniques in
preparing the accounting information in a way that help in
controlling the operations, decision making, disclosure to
management and safeguarding assets.

MANAGEMENT ACCOUNTING
SYSTEMS
It has been said that management accounting system is a process
with the help of which both quantitative as well as qualitative
knowledge can systemically be handled by the managers in order
to create internal reports. It includes different sort of accounting
systems which are going to be discussed as follows:
 Cost accounting system
 Job costing system
 Price optimization system
 Inventory management system

DIFFERENCE BETWEEN MA
AND FA
Basis Management
accounting
Financial accounting
Requirement
s
This is the accounting
system which is not
essential for a business
entity.
If talking about this
accounting system it is very
essential for companies to
adopt.
Results It aid in preparing internal
reports.
It helps in preparing all the
financial statements.
Information Both financial as well as
non financial information
are included in this.
It includes only financial
information related to the
business entity.
Format Reports are usually prepared
without any specific format.
It is prepared in a particular
format.

MANAGEMENT ACCOUNTING
REPORTING
It has been said that management accounting reports is one
of the method which includes both monetary as well as non-
monetary elements. These are the types of reports commonly
used by the corporate managers in order to take best decision
within given period of time. In relation to Prime furniture
limited managers of the company includes these factors:
 Cost report
 Accounts receivable report

BENEFITS OF MANAGEMENT
ACCOUNTING SYSTEMS
 Cost accounting system- This is linked with the factors which will aid in
managing total cost which are from different operation with the help of
assessing correct variance scales.
 Price optimization system- It is the system which is quite beneficial for
the business entity in order to fix their product price as per the current
market trend.
 Inventory management system- This type of accounting system help in
accurately measure all the worth of allocated stock in an effective manner.
 Job costing system- This system is beneficial to all the business to
quantify their cost of enhancing the product produced.

PRESENTATION OF
FINANCIAL INFORMATION
It has been said that it is very necessary for a business entity
that all there financial information must includes all the
below mentioned elements:
 Reliable
 Accurate
 Up to date
 Authentic

CONTINUE
For each and every business entity it has been said that
business entity need to present all the financial information
which are accurate and authentic so that it will assist in
taking decisions. If all the financial information are not
accurate it will affect the overall process of decision making
in a negative manner and affect the business performance in
an adverse way.

INTEGRATION OF MAS AND
MA REPORTS
It has been said that there are different types of accounting
systems within MA which are compatible with organisation
processes as well as functions. In context of Prime furniture
limited it is said that there are different branches of
accounting which are linked with other department. The
sales department of Prime furniture adopt Price optimization
system in order to boost all the sales revenues. It has also
been said that MA reports linked with business procedure,
comparable to all the accounting systems.

CONCLUSION
With the help of above discussion, it has been concluded
that management accounting is one of the most crucial
element for a business entities with the aid of which they
can manage different sort of internal aspects. In addition to
this, it has also been identified that various departments of a
business entity are aligned with the accounting systems and
reports.

REFERENCES
Ward, K., 2012. Strategic management accounting. Routledge.
Wickramasinghe, D. and Alawattage, C., 2012. Management
accounting change: approaches and perspectives.
Routledge