Management Accounting Systems and Techniques for Organizational Success

Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Examine the MA and necessities of various kinds of MA systems in organisation. ..................3
Evaluate various tools and methods of MAR. ............................................................................5
Advantages of MA system...........................................................................................................6
Amalgamation of MAS and MR in organisational activities. .....................................................7
TASK 2............................................................................................................................................7
Usage of right kind of tools for evaluation of cost by building income statement. ....................7
Usage of MA techniques..............................................................................................................9
By framing financial reports by interpret by various activities. ...............................................10
Evaluate both positive and negative aspects of planning tools for control budgets. ................10
Evaluate the various kinds of planning techniques and their applicability in context of framing
and forecasting budgets. ............................................................................................................12
TASK 4..........................................................................................................................................12
Contrast the various styles of management accounting systems to give response in against
financial concerns. ....................................................................................................................12
How MA enables to respond against the financial concerns for gaining sustainability. ..........14
Examine the usage of planning tools to take action against the concerns related with finance
for gaining potential outcomes...................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
MA is one of crucial aspect of accounting system for an administration that connect or
linked the tools and techniques for analysing and evaluating the knowledge and information both
for economic and non economic aspects to accumulate position of an administration . Major goal
of MA is to prepare internal and external reports related to management accounting to proceed in
business functions. In today’s world the organisations by availing economic accounting tools and
techniques to gather potential data and information about the financial projection and estimated
cost and expenditures in near future to take appropriate kind of decisions. Respective assignment
rely on Imperial Brands Plc which is an UK based Tobacco manufacturing company,
headquarters is in Bristol, UK. This report is based on MA and essential requirements of various
kinds of MA system for an organization. Further it includes various acting used by management
accounting reporting to collect data and information for gaining potential outcomes. It also
includes the calculation of cost by using the tools and method by using the marginal and
absorption costing systems to evaluate various factors. By elaborating the benefit and disfavour
by using kinds of planning tools to measure various budgetary control. At last it includes
comparison in various organisations in between management accounting systems to respond
financial problems.
TASK 1
Examine the MA and necessities of various kinds of MA systems in organisation.
Imperial brands Plc:
Respective organisation formerly known as Imperial Tobacco Group Plc which is an
multinational Tobacco company headquartered in Bristol in UK. It is the fourth largest
international Cigarette company measured by market share and world's largest producer of
Cigars, tobacco papers and many more.
Role of Management accounting:
MA is very much potential for an organisation as it plan the each and every aspect with in
organisation. Such as resources, budgets and forecasting and many more attributes. After
planning each and every event in proper manner it control it by using various tools and
techniques for setting standards in order to gain accurate results. By using benchmarking, key
performance indicators and many more to control the activities for gaining desirable outcomes.

MA as stated above, is significant aspect for an organisation that helps to proceed by
controlling both the qualitative and quantitative data and statistics to prepare the reports to gain
important insights to gain potential outcomes in positive manner (Ward, 2012). Here are the few
advantages of MAS that are as follows:
MAS is very much beneficial for an organization to accumulate and effectively utilize the
knowledge and information collected by a firm. It proved beneficial for organization in order to
estimate the futuristic actions and activities of organisational income and expenditures to gain
potential outcomes to plan and coordinate with their teams to coordinate them in proper way.
The another major benefit of MAS that it helps in control all the major works and
activities that it helps in control all the financial activities such as accumulation of financial
activities, budgeting and controlling by measuring various events for gaining potential outcomes
(Otley and Emmanuel, 2013). The another crucial kind of contribution of management
accounting system that after building fiscal reports organization can be able to evaluate various
factors that helps in decision making process. In context of Imperial brands Plc they analyse
financial reports, accounting methodologies and concepts in order to acknowledge financial
status of an organization.
So from the above discussion it has been summarized that MAS proved very much
beneficial for an organization to gain important insights and knowledge for taking effective kind
of decisions.
Comparison in between the MAS and FAS:
Basis MA Financial accounting
Important aspects MA elaborates both financial and non
financial kind of information and
data.
In financial accounting only financial
data and statistics should be covered
in order to reach at ultimate goal.
Time required to
prepare or build
reports
In this accounting, the reports are
prepared as per the requirement of the
organization in order to gain potential
outcomes.
In financial accounting the reports
collect with the help of norms of
IFRS in order to accumulate
necessary information.
Obligation MA system is not obligatory for On other hand financial accounting

organisations to comply with rules
and regulations.
proved useful for organisations to
accumulate information at regular
intervals.
So from the above discussion it has been summarized that MAS is very much essential
for an organization to accumulate necessary knowledge and information to take decisions
appropriately.
Management accounting systems
Inventory management system:
Inventory management system is a software that proved useful for tracking the level of
inventory, orders and sales with deliverables. Respective system proved useful for manufacturing
industries in order to create work order, bill of materials and other kind of production related
documents. Respective tool proved beneficial for organisation to track level of inventory to fulfil
the consumers needs and demands in appropriate manner.
Respective system of MA is significant for a firm that helps to track the movement of
relative products and services until it reached to ultimate consumer base. Also it enables to verify
the raw material and quantity of final goods to ultimate consumer base so ultimately it proved
beneficial for Imperial Brands Plc to facilitate the path to meet the demands of consumers in
positive manner. The most important function of respective system of management to maintain
records of overall transfer and also keep balance of demand and supply side to gain optimum
kinds of outputs.
Price optimization system:
Price optimisation system is one of most useful tool for an organisation to analyse or
evaluated by an organisation the way consumers respond in against different price range
regarding the products and services by using statistics and data in appropriate manner.
Respective tool proved beneficial for organisation to choose one of best prices for products and
services.
Pricing is one of the most essential function of MA which directly impacts on the demand
and supply side of the business (Parker, 2012). It is very much essential for the organisation to
affix one of best price of goods for gaining potential outcomes. Respective system proved
beneficial to set one of best price that are suitable for organisation as well as individual to track
the behaviour of consumers at every tier of their purchasing behaviour. In context of Imperial

Brands Plc by using respective kind of management accounting system examine various factors
which directly contributes in formation of pricing to gain best prices in respect of their product.
Cost accounting system:
Cost accounting system is one of most potential framework used by an organisation to
estimate the cost of products and services in proper manner. In context of Imperial Brands Plc
they by using respective tool determine cost of products and services in proper manner.
Respective system is one of most structured format to figure out the cost of products and
services to accumulate information regarding the profit and losses occurred by the organisation
at every tier of production and consumption. It proved beneficial for organisation who deals in
large product portfolio by categorised into two forms such as job order costing and process
costing system. In context of Imperial Brands Plc they by avail both kind of costing system
determine actual cost of related products of firm.
Evaluate various tools and methods of MAR.
Management accounting reports:
MAR defined as kind of reports which are composed or prepared by the organization to
control the financial and non-financial knowledge and information. There are various kinds of
reports of MA that are as follows:
Account receivable ageing reports:
Respective kinds of reports used by an organization by gathering information from
various debtors by including various kinds of debt information (Otley, 2016). The main role of
respective reports to provide assistance to financial department to provide necessary knowledge
and information to such as amount due to debtors. In context of Imperial Brand company, they
by using respective kind of financial reports their financial manager utilizes key knowledge to
prepare and collect debts.
Cost accounting report:
Respective reports after utilization of the information and knowledge by using the cost
accounting system. By using such kinds of reports by accumulating each and every activity by
predicting future actions and plan accordingly (Schaltegger and Csutora, 2012). In context of
Imperial Brands Plc they accumulate necessary information related to cost by operating various
activities related to tobacco production and consumption.
Performance report: