Management Accounting and Its Essential Requirements

This presentation provides an overview of management accounting and its essential requirements. It discusses different methods used for management accounting, appropriate techniques of cost analysis, advantages and disadvantages of planning tools, and how organizations adapt management accounting systems. The presentation also includes a conclusion and references for further reading.

MANAGEMENT
ACCOUNTING

Table of Content
• Introduction
• Management accounting and its essential requirements
• Different methods used for management accounting
• Appropriate techniques of cost analysis
• Advantages and disadvantages of different types of planning tools
• How organisations adapting management accounting systems
• Conclusion
• References

Introduction
The word management defines as planning, organising, staffing,
directing and controlling to achieve objective as to get an organizational
success for future smooth sailing. The word accounting defines a report
or the analysis of Ballpark number and give a big picture of business in
an appropriate manner.

Management accounting and its essential
requirements
The word management defines as planning, organising, staffing,
directing and controlling to achieve objective as to get an
organizational success for future smooth sailing. The word accounting
defines a report or the analysis of Ballpark number and give a big
picture of business in an appropriate manner

Cont...
Management accounting has a vast difference when it compares to
financial accounting as it works more on to operational reports and
financial accounting comprises all different reports of accounting
standard which help in taking vital decision for the company growth.
Essential requirements of different types of management accounting
systems.

Different methods used for management
accounting
Managerial accounting report defines the accounting report of various
aspect related to planning, organising, staffing, directing and
controlling the performance of an individual or a group in a company.
These reports are recorded on continuous basis and work on analysis at
the end of a financial year.

Cont...
Different methods are determine below as:
• Budget Reports
• Account receivable ageing report
• Cost managerial accounting reports
• Performance report

Appropriate techniques of cost analysis
Analysing of cost in a company is necessary part of a success, as it
maintain records of every transaction in an appropriate manner. It
involves different type of analysis to frame the strategies for the growth
of a company. Analysis of cost effective, which help in profit
maximization, analysis of cost benefit which gives strength to the
company and help in maintaining goodwill in the market.

Cont...
Absorption costing:

Cont...
Marginal costing:

Cont...
Income statement by marginal costing method:

Advantages and disadvantages of different
types of planning tools
Planning tools helps the organisation in guiding and taking measures
regarding projects and program. It provides detailed analysis of what
organisation needed to be done. Budget is one of the planning tool that
is prepared in order to deal with unforeseen circumstances.

Cont...
There are different types of budgets used by airdri let's discuss them in
detail:-
• Capital budgets
• Operating budgets
Alternatives for budgets are as follows-
• Zero based budget
• Activity based budgeting

Cont...
Behavioural implications of budgets-
This brings positive behaviour in the people as it helps in increasing the
efficiency and effectiveness of organisation. There are different pricing
strategies set by the companies to set rates of their products and
services.

How organisations adapting management
accounting systems
Monetary issues: Budgetary issues are the negative circumstances for
organizations in which they experiences the absence of cash or reserve.
It impacts adversely on the organization's development and gainfulness.
To defeat from these issues organizations makes different techniques
and plans.

Cont...
Airdri restricted applies this way to deal with illuminate their
budgetary issues. They utilize following methodology :
• Benchmarking
• Key execution pointer

Cont...
Difference in between airdri financial consultancy and Bright-star
financial limited:
BASIS Airdri financial consultancy Bright star financial limited
Issue
related
The organization is
confronting the issue of
absence of the board of cash
because of this there are
parcel of budgetary issues are
emerging. Without cash the
board they can't utilize
successful utilization of
reserve for specific
movement.
This organization is confronting the issue of
befuddle asset report. Because of this they can't
coordinate among liabilities and resources.
Their liabilities are expanding ceaselessly in
contrast with resources and this is making load
on the organization.

Conclusion
From the above report it concludes the basic function of a company by
which it can maximize its profit from the market, it focuses on various
analyses of previous financial year data and maintain stability in the
cut throat competition of the market. To ahead of the pack, it analysis
the ballpark number of every financial year and showcase a big picture
of business in a market.

References
• Renz, D .O., 2016. The Jossey-Bass handbook of nonprofit
leadership and management. John Wiley & Sons.
• Maas, K., Schaltegger, S. and Crutzen, N., 2016. Integrating
corporate sustainability assessment, management accounting,
control, and reporting. Journal of Cleaner Production. 136.
pp .237-248.

Thank You