Management Acounting

MANAGEMENT
ACCOUNTING

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
P1.Description of management accounting and its types.........................................................................3
P2. Analysis of wide range of management accounting reports...............................................................4
M1.Role of management accounting systems..........................................................................................5
D1.Way in which management accounting systems and reporting are integrated within organizational
process.....................................................................................................................................................5
TASK 2.......................................................................................................................................................5
P3. Preparation of income statements as per the costing methods...........................................................5
M2. Management accounting techniques to produce financial reporting documents.............................11
D2. Interpretation of produced income statements................................................................................11
TASK 3.....................................................................................................................................................11
P4. Description of limitation and importance of planning tools of budgetary control............................11
M3 Planning tools for preparation and forecasting of budgets...............................................................12
TASK 4.....................................................................................................................................................13
P5.Comparison of organizations to solve the financial issues with the help of accounting systems......13
M4. Management accounting to solve the financial issues....................................................................14
D3. Planning tools to solve the financial issues.....................................................................................14
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................16

INTRODUCTION
Management accounting is also recognized as managerial accounting that is concerned
with the compilation, evaluation, presentation and distribution of quantitative and qualitative
data for internal clients (Drake, Roulstone and Thornock, 2016). Within this accounting, the
paired data on monetary and anti-monetary elements is being used to generate reports that play
an important part in the efficient judgment-making of executives and board members. In the
present time frame, this accounting is seen as one of the key elements of proper distribution and
use of monetary and non-monetary capital. In the project report a company has been chosen that
is KEF limited company. This company operates in manufacturing industry and located in
United Kingdom. In the project document, the term management accounting is explained in great
detail as well as its various forms of accounting systems and reports In addition, multiple
accounting strategies and planning methods are identified.
MAIN BODY
P1.Description of management accounting and its types.
Management accounting is described as an inner reporting process with the aid of a
combination of quantitative and qualitative data. On the basis of the assessment of the meaning
of this accounting, it can be concluded that this is only beneficial to internal users of businesses.
This is because it is not possible for external clients of businesses to profit from the aid of the
documents produced under this accounting.
 Price optimization system- It can be characterized as a method for assessing variations in
demand at different price rates. This accounting system is commonly used by businesses
to adjust the prices of their serviced goods, taking into account how their consumers
would respond to the fixed price model. Essentially, under this framework, businesses are
given the idea of setting prices at a rate that is appropriate to all potential buyers. This is
achieved by examining different external environmental factors, like consumer demand
for products, customer attitude towards client products, etc. It is therefore important for
companies to keep prices at an efficient level in line with market conditions and
consumer approach. In the case of the business mentioned above, they adapt this
accounting system to the determination of prices of their products manufactured. As well
as delivering goods to their consumer segments according to their estimated price point.
 Cost accounting system- This accounting system is also known as the costing or value
method for goods. In particular, it can be described as a type of accounting system that is
affiliated with an effective prediction of the cost of goods and services. In essence, this
accounting system is required by companies to ensure to make a better assessment of the
degree of productivity as well as in order to control costs. As in the above-mentioned

business, their executives concentrate on applying this accounting system that keeps
manufacturing costs in line with expectations.
 Stock management system- It is an accounting system that is consistent with the method
of monitoring the records of the inventory which has been ordered, acquired and used in
manufacturing (EBRAHIMI and MOGHADASPOUR, 2015). Under this accounting
system, inventory assessment is carried out using different techniques, such as the last in
the first out, the weighted average etc. It is therefore important for businesses to estimate
the need for product to be manufactured by determining the availability of inventory
volume in factories. As in the aspect of the above-mentioned organization, this
accounting system is applied in order to know the quantitative aspect of the materials
required.
 Job order costing system- This accounting system is characterized as a structured process
for monitoring costs and profit on the basis of ' job ' involved in the processing of any
specific tasks. Essentially, corporations are required to get an estimate of each output unit
or of any product. In the organization mentioned above. This accounting system is
applied by their executives to aid in the measurement of each of the production units,
which contributes to a reasonable price setting.
P2. Analysis of wide range of management accounting reports
The Management Accounting report is some kind of comprehensive picture of the
company's results, a complete integrative view of finance. It has proved very advantageous to
businesses in order to utilize key information by help of these reports.
 Inventory management report- The respective reporting system for a manufacturing
business is very important as, with the assistance of it, manager, can easily analyze the
present level of stock within the organization by assessing current production and
consumption (Murthy and Rooney, 2018). In the sense of the above mentioned company,
it enables to assess or arrange documentation on the level of inventories for the
production of goods and services in sufficient amounts.
 Cost accounting report- The Cost Accounting Report attempts to determine the price of
goods, different procedures and programs in order to assess the financial reports of the
company. In the context of the above-mentioned business, their administrators the, with
the aid of the relevant report receive assistance from managers in preparing and reducing
costs and procedures internally.
 Performance report- Performance report collects vital information relevant to the quality
of the project by reviewing, generating and submitting information to the appropriate
stakeholders engaged in reporting on performance. The performance report is a
significant part of the communications Management Plan, which includes the information
needed by shareholders at each level of the company in a comprehensive layout. In the
scope of the above business, reports are drawn up using one of the more effective
methods for reporting practices