Managerial Accounting Report 2022

Managerial Accounting
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Abstract
The management accounting systems are developed and implemented by the businesses
for the purpose of conducting internal analysis and guiding the overall business strategy. These
techniques enables in developing internal financial reports and records that proves to be largely
helpful for the business managers in aiding their decision-making process. The analysis of the
selected journal article in relation to the MAS within the report have inferred that these are
largely helpful in meeting the contemporary business needs by providing relevant internal
accounting information. However, their successful adoption is largely influenced by the business
culture and size that can hinder the success achieved by these techniques as depicted form the
analysis of the case study company and the findings stated from other selected journal article.
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Contents
Introduction................................................................................................................ 4
Critical Evaluation of Role of Management Accounting Systems (MAS) and
accounting information provided for the case company............................................4
1. Identification of MAS and techniques from the case study..................................4
2. Relevance of MAS to Contemporary Organizations in Reference to:......................5
(i) Evidence from the Case Company......................................................................5
(ii) Comparison of the Findings Obtained in Reference to another Selected Journal
Article...................................................................................................................... 6
3. Conclusions about Relevance of MAS in Competitive Business Environment of
Today......................................................................................................................... 7
4. Learned outcomes realized from the analysis of two selected journal articles.......8
Conclusion.................................................................................................................. 9
References............................................................................................................... 10
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Introduction
The report has been developed in the context of providing an adequate explanation
regarding the usefulness of the management accounting systems in supporting the decision-
making process of business managers. The overall discussion in the report is held in the regard of
evaluating the selected journal articles that has presented discussion about the practical use of
these systems in the contemporary business organizations. The report is based on the critique of
a given journal article that discusses the relevance of MAS systems in context of a case study
company. The findings obtained are compared with another selected journal article that has also
presented discussion about the use of MAS systems in real life companies. The main purpose of
the report is to demonstrate both the benefits and challenges that are associated with the use of
management accounting systems within business organizations.
Critical Evaluation of Role of Management Accounting
Systems (MAS) and accounting information provided for
the case company
1. Identification of MAS and techniques from the case study
The three major management accounting systems that have been identified from the
given case study are as follows:
 Activity Based Costing (ABC): The system of ABC is used by the business managers for
the purpose of controlling costs on the department level and identifying the unnecessary
activities that can be eliminated for improving the production efficiency (Armitage,
Webb and Glynn, 2016).
 Balanced Scorecard (BSC): The technique helps in analyzing the performance of a
company on the basis of four perspectives, that are, learning and growth customer
satisfaction, financial performance and internal processes. The analysis of the
organizational performance is done on the basis of examining these four perspectives that
helps in collection of adequate internal data to aid decision-making
 Just In time (JIT): This management accounting technique is highly useful for reducing
the overall production costs by storing inventory that adequately matches the production
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