Importance of Management Accounting and Techniques for Reporting

Unit 5 Assessment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explaining the different principles of management accounting and mentioned its importance to
integrate management accounting systems of an organisation....................................................3
Demonstrating the different techniques and methods used for management accounting
reporting.......................................................................................................................................4
Budgetary control : advantages and disadvantages.....................................................................5
Comparing the organizations for adapting management systems to respond to financial
problems.......................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Management accounting is the process or method of preparing the reports of the business
operations and functions that helps the management of the organization to take the appropriate
decision for short or long term areas. This process of the accounting management refers to look
out for the financial information or non-financial data and help to make the appropriate decision-
making process to the managers. This entire process is also known as cost accounting. The
company named Eastern Engineering Cooperative Limited located at United Kingdom which is a
medium-sized manufacturing organization.
The report will illustrate the importance of the management accounting and its
effectiveness in the company and also mention the different techniques and methods which can
be used for accounting report (Mynbayeva, 2018). It also mentioned the advantages and
disadvantages of the budgetary tools and will compare two organizations to adopt the
management system to respond the financial problems effectively which can develop the growth
of the company.
MAIN BODY
Explaining the different principles of management accounting and mentioned its importance to
integrate management accounting systems of an organisation
The term management accounting is the financial information an organization required to
adopt to take the economic decisions relevant to business functions. The accounting management
principles are developed for understanding the needs of internal management from which an
improvement area has been to be considered and can support the decision objectives (Amir,
Rehman, and et.al., 2020). It has to be considered to put the effectiveness in the internal
management of the company and can obtain the effective outcome and productivity. There are
different kinds of principles of management accounting which are described below:
Designing and compiling: It is important take the evidence of any information which helps the
company to maintain and conduct the relevant data which can help them to overcome their uses
and obstacles related to the accounting management of the company. The reports, statements,
and all other present and past information should be collected and designed according to the
needs and requirements of the particular business and organization.