Management Accounting Presentation

This presentation provides an introduction to management accounting and its scope and importance. It discusses the context of ASDA, including its history, growth, and future plans. The presentation then explores different types of management accounting systems and management accounting reports. It also examines the application of management accounting in ASDA and evaluates the benefits of management accounting systems. Finally, it critically evaluates the management accounting system in ASDA. The presentation concludes with a Q&A session and references.

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MANAGEMENT ACCOUNTING
UNIT5
LO1:
NAME: XYZ
COLLEGE ID: XYZ

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TABLE OF CONTENTS
S.NO CONTENTS PAGE NO
1 INTRODUCTION 3
2 CONTEXT OF ORGANISATION 4
3 P1: DIFFERENT TYPES OF MANAGEMENT
ACCOUNTING SYSTEMS
5
4 P2: MANGEMENT ACCOUNTING REPORTS 6
5 APPLICATION ON ASDA 7
6 M1: EVALUATE THE BENEFITS OF
MANAGEMENT ACCOUNTING SYSTEMS IN
ASDA (OPTIONAL)
8
7 D1:CRITICALLY EVALUATE HOW
MANAGEMENT ACCOUNTING SYSTEM IN
ASDA (OPTIONAL)
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8 CONCLUSION 10

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INTRODUCTION
• Management accounting is defined as a
practice which assist in identifying,
analysing and interpretation of financial
information with aim of decision making.
• SCOPE- Solving problem of business with
help if financial information
• IMPORTANCE- Effective planning.

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CONTEXT OF ORGANISATION
• HISTORY OF ASDA: founded 1949 by Sir
Noel Stockdale, Peter and Fred Asquith
• GROWTH: located in many different
countries and has approximately 631
stores till date
• FUTURE PLANS: Hassle free shopping,
parcel collection tower and develop
Stevenage as its tech store

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P1: Different types of management
accounting systems
• 1- Inventory Management System It
refers to system used for keeping record
of all the inventories of organisation.
• 2- Cost Accounting System The system
refers to identifying the cost of producing
each item and overall production costs.
• 3- Price Optimisation System This
method is used by management to
determine optimal prices of products to
be kept.

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P2: MANGEMENT ACCOUNTING
REPORTS
• 1- Budget report estimates possible income
and expenses which a company can incur in
near future.
• 2- Performance report analysis of
performance of employees is being undertaken.
• 3- Account receivable report includes all the
balances which company need to collect from
its creditors.

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APPLICATION ON ASDA
• ASDA uses budget reports, inventory management reports
and performance reports.
• It uses inventory management system, cost accounting
system and price optimisation system.
Benefits
• It helps in managing the different inventories and
identifying cost of products.
• It allows to keep the operations of business ongoing
without any interruptions.
• The reports helps to analyse the process results and to take
further business decisions
• Use of report and system together makes proper analysis to
make accurate forecasts

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M1: Evaluate the benefits of
management accounting systems in
ASDA (Optional)
• Effective planning
• Increase in efficiency because of use of
inventory management system

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D1:Critically evaluate how management
accounting system in ASDA (optional)
• As per the views of Ameen, Ahmed and
Abd Hafez (2018) management
accounting system such as inventory
management, cost accounting system and
others is used by ASDA.
• This is done in order to manage the work
in proper and effective manner and takes
decision for betterment and development
of business activities.

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Conclusion
• The presentation evaluated that MA is
used to analyse financial information and
interpret it for taking decision.
• Further it was evaluated that use of MA
system like inventory system, cost
accounting and other are assistive.

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Q & A

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REFERENCES
• Ameen, A. M., Ahmed, M. F. and Abd Hafez, M.
A., 2018. The Impact of Management
Accounting and How It Can Be Implemented
into the Organizational Culture. Dutch Journal
of Finance and Management. 2(1). p.02.
• Rikhardsson, P. and Yigitbasioglu, O., 2018.
Business intelligence & analytics in
management accounting research: Status and
future focus. International Journal of
Accounting Information Systems. 29. pp.37-58.