Management Accounting: Principles, Techniques, and Planning Tools

Management
accounting

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
An explanation of the principles of management accounting and the role of management
accounting and management accounting systems..................................................................3
The use of techniques and methods used in management accounting ..................................5
The benefits of the function to the organisation.....................................................................6
Evaluation of how management accounting is integrated within the organisation. ..............7
PART 2...........................................................................................................................................7
Compare and contrast three planning tools used in management accounting, indicating how
effective you judge each to be and why. Your judgements should be supported by examples to
demonstrate advantages and disadvantages............................................................................7
instruments that the institute will adopt to resolve these issue are : ...................................8
Using specific case studies as examples, compare ways in which management accounting is
applied, the effectiveness of management accounting in dealing with financial problems and
preventing financial problems in organisations....................................................................10
..............................................................................................................................................12
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Establishment explanation is being considered as the most suitable method which is used
in an organisation by the mangers of the finance department in order to make the financial report
of the business activity. These reports help the manager to make short run and long term decision
for company. The different provisions of the accounting helps in determining all the financial
and statistical data in a very effective manner(Pinheiro, and Costa,eds., 2020). With the help of
this business operations can be controlled in a very proper manner so that firm can achieve the
set objectives with in the set time limit. The main purpose of the company behind the preparation
of the management accounting is to provide data related information to their stakeholder so that
they invest more and more in the company which ultimately increase the working efficiency of
the company. Along with this the data which is prepared by the company also help the internal
stakeholder of the company so that different department of the company can function and make
the decision in a very effective manner. The following report is based on the Speedboard
Assemble services which is well known medium scale manufacturing company. This report
cover the various management accounting system and the different method of management
accounting. This report also cover the cost accounting techniques and advantages and
disadvantages of the planning tool of the budgetary control. After words this report covers the
adoption of management accounting system to respond the financial problems.
PART 1
An explanation of the principles of management accounting and the role of management
accounting and management accounting systems
Management accounting may be define as the procedure of presenting the financial as
well as the economic data which not only help the company in improving the performance of the
management but also help the company in making the effective strategies for budgeting,
forecasting and for their competitor(Phornlaphatrachakorn, 2019). According to the American
Accounting Association, basically management accounting is a concept which helps the
organisation in planning the strategies for the different business activities so the the goals of the
firm can be attained in a very significant manner. There are different types of accounting
management system which help the business organisation to carry out their all the business

operations in a very effective manner. The different types of management accounting system has
been discussed below:-
 Cost Accounting System :- the cost accounting management system is basically a
frame which helps the company in estimating the cost of goods and services which are
produced by them, valuation of the inventory, profits of the company. With the help of
this management accounting the organisation is able to make their vision in best
possible manner. On the other hand, this accounting management system also support
the business organisation not only in determining the profit margins but also help them
company in identifying all the cost either fixed or variable. Due to this the overall
productivity of the company has been improved. In context to the Speedboard
company, cost accounting management system helps the manager of the company in
determining the cost of manufacturing the goods in a very effective manner. Along with
this cost can be controlled which ultimately help the company in increasing the profit
margins of the company.
 Price optimisation system :- This management accounting system help the company
in determining that how the taste and preferences of the consumer has been change
according to the changes in price. In context to the Speedboard company, the manger of
the company with the help of this accounting system can concentrate on the pricing
structure of the company's product which the clients are prepared to pay. Along with
this company can also use this in their organisation by collecting the data so that they
can set prices of their inventories and cost of the item beforehand.
 Inventory management system :- this accounting management system directly deals
with the stocks of the company. With the help of this accounting system the
organisation is able to manage their inventory in a very effective manner. Along with
this, this system also help the company in determining that how much stock have to
hold by the company and how much they have to sale in the market. In context to the
Speedboard company, the manager of the company have to focus on this accounting
system because this help them in growing their business in a very effective manner.
With the help of this the management of the Speedboard company will effectively
allocate their stock in different areas and places according to the activity of production.
With the adoption of this accounting management system the management of the