Management Accounting for UCK Furniture

This assignment examines the application of management accounting principles within UCK Furniture. It analyzes various accounting systems, including inventory management, price optimization, and job costing, highlighting their advantages and effectiveness for the company's operations. The report further explores different reporting methods like performance reports and account receivable reports, emphasizing their role in financial statement preparation and decision-making.

Management Accounting
PART 1

TABLE OF CONTENTS
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1: Concept of management accounting and their essential requirement.............................1
1.2: Various types of accounting reporting method...............................................................3
1.3: Benefits of using management accounting system..........................................................4
1.4: Critical evaluation of various reporting and accounting system.....................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Nowadays, it has been found that most of the organisation are looking to have effective
accounting system in order to record various financial and non-financial transactions. The role of
managers is to have completed analyse about various aspects which will be effectively helpful in
overall administration of various important matters which are associated with the UCK group of
companies. It is the primary objectives of any researchers is to make proper survey about internal
as well as external department of an organisation. This project report is all about explaining
various crucial aspects those are related with different types of accounting systems as well as
reporting method those are beneficial for the company (Weygandt, Kimmel and Kieso, 2015).
Apart for this, critical evaluation of all those accounting systems and reporting is discussed under
this report.
TASK 1
1.1: Concept of management accounting and their essential requirement
As per the mentioned case scenario, it has been found that UCK furniture is going to start
effective training course for their various new inters in the year 2016. Management accounting is
said to be an essential process which will be used to prepare various management report and
accounting information in accurate and timely manner. By the help of various resources in
effective manner UCK furniture would be able to attain their various aims and objectives
effectively in coming period of time. Managers always tries to make proper valuation of
accounting transactions those are done within an organisation. There main aim is to create
maximum revenues and analyse business costs and functions to prepare different types of
financial statements of UCK furniture (Needles, Powers and Crosson, 2013).
Definition: Management accounting is known as one of the reliable profession which
will be related useful for the owner of the company in order to make future decision making. The
role of managers is to analyse performance of management systems, deliver expertise advice in
financial reporting and make proper evaluation to assist management in formulating better
planning.
Importance of using management accounting:
 There are various types of internal operations that can be planned with the aim of
accounting data, budgeting and estimation future growth of the company.
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 It would be more helpful in avoiding various seasonal fluctuations that are arises in an
organisation.
 This will assist in proper communication with the information to various parties those are
interested in proper working of various business organisation.
Types of management accounting systems:
There are various types of accounting system that can be useful for UCK furniture
company. By using all those system, they can easily be able to make reporting of necessary
transactions that are done within an organisation. Some of them are mentioned underneath:
Cost accounting system: According to this particular accounting system, UCK furniture
would be able to make analysis of all their additional costs those are incurred over the production
of products can be determine effectively. This seems to be estimation of reliable procedure
which is done for predetermining aims of products and services those are incurred during the
time. It is used measure principal of financial drivers in everyday business decision making or
moving of valuable aspects of all activities those are done within the department. There are
various types of cost accounting system such as, Normal, Standard and Actual costing (Maher,
Stickney and Weil, 2015).
Price optimisation system: It has been analysed that optimization is considering as wide
term in area of pricing that used is to describe various application those are considered at the
time of setting prices for a product. The company used to analyse perception of customers as
well as their overall reactions regarding the price they are going to pay for products and services.
They would also have analysed that whether the company can be able to earn sufficient amount
of earning from this must price. It is known as numerical evaluation process that assist them to
determine customer would react with various costs for their products and services through
several modes.
Inventory management system: It is said to be the combination of various technology
and procedure that are held responsible for maintaining overall stock position of the company.
the main aims of using this particular system is that, whether all those items of companies, raw
material, finished products are ready to be transfer to end clients. These are mainly considered in
production sectors such as UCK furniture which is operating in manufacturing of wooden items,
create a work order, bill for material as well as manufactured items of the company. There are
various types of inventory controlling system which will be taken into account for evaluation of
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stock such as, ABC costing, perpetual and periodical inventory control system are more reliable
in effective manner.
Job costing system: It is more effective process which would be assigning cost that are
incurred to analyse specific job those are associated with the company. This would be largely
utilised in manufacturing sectors during the time of allocating cost to a single project of an
organisation. A project manager used to keep proper track of their cost of every job, maintaining
data that will often associated to the operations of the business organisation. There are various
types of costing system that will be taken into account. Some of them are batch, process,
standard and contract costing.
1.2: Various types of accounting reporting method
In accordance with getting more reliable outcomes in near future time the UCK furniture
need to make proper evaluation of their accounting statements accurately. Reporting is mostly
related with various issues that a manager used to found in their internal and external factors. A
reporting business is considered as one of the reliable part of the department that used to prepare
different types of financial statements. It is the act of companies to provide reliable person that
do have appropriate skills and knowledge in the field of accounting. These are prepared on
consistence basis by using various data those are collected from various department. Such as
marketing, finance, human resources and other. It is more tough, multiprocessing activity that
used to take place in accordance with the other business and make proper information system
those are reliable for providing better opportunity to the department.
It would be more effective in terms of providing reliable data to different stage of
management so that to enable better judgement of everyone roles and responsibility centres. The
main objective of this reporting system which would have complied with the aim of research and
analysing is collected data is being done to remove all issues those are present in the department.
Report used to cover wide range of data those are collected from various division. Reporting
used to play vital role in present business to organise various resources those are effectively
helpful in near future time (Edmonds and et. al., 2016). There are various types of accounting
reporting system which will be useful for UCK furniture to record essential information about
the cited company. some of them are mentioned underneath:
 Performance report: It is known as one of the effective report that is being taken into
account for the purpose of making relevant comparison. It will be done by using past and
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current year of financial data. The manager used to provide these reports which is being
invested by public fund and needed to show all capital which are spent usefully on a
given project. It is considered as one of the reliable activity that is being related with
project communication administration. It consists of various collection and disseminating
project data those are communicated with the aim of estimate future outcomes of
collected from a project. The primary role of accounting performance reporting in
organisation to prepare budgets those are used to make comparison of actual and
budgeted amounts for controlling amounts for a department as well as managers.
 Account receivable report: It is a specific kind of report that is being framed for the
purpose of examine detailed lists of unpaid customer’s invoices and unused client those
are credited through the mentioned date. The aging of this report is related with primary
tools and techniques which is being gathered as personnel to identify which amount are
overdue for the payment. It is important for the debtors to make payment of due value as
per the mentioned date. This will be effectively reliable for the manager to get reliable
information for the company in near future time.
 Inventory management report: It is known as one of the effective reporting system that
can assist administration to manage and control their opening and closing stocks of UCK
furniture company. There are certain important aspects which will be taken into account
for the purpose of increase goodwill of the company in front of other organisation. There
are various types of inventory control system that would be helpful for attaining more
reliable for recording of stock related transaction. Such as LIFO, FIFO and AVCO.
 Job cost report: According to the effective reporting system the company is having
initial place for total data those are contained under the report. These report detailed each
job UCK furniture are operating on and lists of overall cost which are incurred on the job.
There are categories into various parts such as, Labour, material, subcontractor and
liquidated damages etc. All those costs those are mentioned on the report are directly
related with a single job cost.
1.3: Benefits of using management accounting system
It has been seen that budget is considered as one of the significant aspects of management
accounting. It consists of financial accounting that consists of various focus on historical
information. Henceforth, managerial accounting does have various benefits that used to provide
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detailed analysing of the UCK furniture company. It is essential process considered for
formulating administration report and accounts those are provided accurately to managers to
make medium term decision making. Some vital benefits of using accounting system are:
Types of accounting systems Benefits
Costing accounting system  There is certain effective advantage of using this
particular system such as adequacy or inadequacy of
selling cost.
 Maintenance of valuable investment in stock of UCK
furniture.
Inventory management system  The decouple of segregation of different parts of
production steps are taken into account.
 It can be effectively helpful for getting quantity
discounts.
Price optimisation system  It will be essential for the future planning of their
products and services.
 Overall perception of customer perception can be taken
into account.
Job costing system  It used to deliver effective benefits that used to set apart
from using process costing.
 Accessibility of the all products that are produced can
easily be determine by the manager.
1.4: Critical evaluation of various reporting and accounting system
In accordance with all essential aspects those are collected out of various department can
be taken into account for preparing financial reports of the company. to make proper
understanding of various items taken into account for the manager are considered under the
period of reporting (Accounting Report, 2018). There are various types of reporting method such
as, performance report which will be taken into account for effective comparison of financial
performance of UCK furniture company. account receivable report is more reliable in collecting
necessary data about all overdue payment which are needed to be taken from debtors. Inventory
management report are needed to check availability of various stock that are kept by the
company during an accounting period.
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CONCLUSION
From the above project report, it has been concluded that management accounting is
utmost crucial aspects which is helpful for UCK furniture for future planning. The project
purpose is taken for the motive of analysing different types of accounting system those are useful
for the company. Apart from this, role of using various methods of reporting those are taken into
account for preparing financial statements of cited group. The overall analysis is done to get
better outcomes in near future time.
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REFERENCES
Books and journal:
Weygandt, J. J., Kimmel, P. D. and Kieso, D. E., 2015. Financial & managerial accounting.
John Wiley & Sons.
Needles, B. E., Powers, M. and Crosson, S.V., 2013. Financial and managerial accounting.
Cengage Learning.
Maher, M.W., Stickney, C. P. and Weil, R.L., 2012. Managerial accounting: An introduction to
concepts, methods and uses. Cengage Learning.
Edmonds, T. P. and et. al., 2016. Fundamental managerial accounting concepts. McGraw-Hill
Education.
Online
Accounting Report. 2018.[Online]. Available through: < http://www.accounting-basics-for-
students.com/accounting-reports.html>.
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