Importance of Managerial Accounting and ABC System in Australian Organizations

Management
Accounting

ABSTRACT
The management accounting has wide role in the development of the organisation and is
widely used in many countries. It has indicates the responsibilities of the accountant in the
financial department for measuring the performance of the business. In the era of 21 century the
value of financial accountancy is rising. It helps in the process of the decision-making. ABC
system is the most important method utilize in the organisation to select the viable activities and
to divide them according to the functions or the prioritise.

Table of Contents
INTRODUCTION...........................................................................................................................4
PART A ..........................................................................................................................4
a) Importance of managerial accounting in the company ..........................................................4
b) Viability of the article ...........................................................................................................5
c) Nature of choosing the article ................................................................................................6
d) Issues is faced in this article ..................................................................................................6
e) Relevant solutions to the challenges faced in this article .......................................................6
f) Recommendation to the use of managerial accounting...........................................................7
PART B...........................................................................................................................................7
a) Elaborate the extent of ABC system adopted by the Australian organization........................7
b) Adoption of the ABC system in Australia............................................................................10
Conclusion.....................................................................................................................................10
REFERENCES..............................................................................................................................12
Online source: ......................................................................................................................13

INTRODUCTION
Managerial accounting is the process of planning, coordinating, leading and
monitoring the financial tasks of the company. This tools helps to run the businesses
operations in a smooth and coordinated manner. This helps in cost analysis, preparing
the budget and to predict the future conditions. In the first part there is the discussion of
the role of management accounting the organisation in the 21st century. The next there
is article has been taken from the website about the role of management accountant in
the 21st century and the issues faced by the accountant in the present case (Aboody,
Levi and Weiss, 2018). Ascertain the solutions to deal with the problem that is faced by
the financial persons in the new innovations or techniques. The next section is about the
follow up of the activity based costing in the organisation. This methods helps to
allocate the activity on the priority criteria. It helps to slow down the production cost.
The benefits or demerits of adopting or not using this technique in the Australia
company. In the last there is the overview of some real examples of Australia
organisation who has adopted the system or not.
PART A
a) Importance of managerial accounting in the company
Managerial accounting is the procedure of recording the transactions of the daily
nature. It comprises the recording of events, summarizing the monetary transactions,
analyses of records and interpreting the financial transactions to the users of the
company. The most vital function is to submit the financial reports to the owners and the
investors of the organisation. It is the method of the managing, and bring the reports
and estimate the financial information for taking the relevant decisions. It also helps to
collect the non financial information along with the monetary data. These information is
based on the facts or amount to drive the effective decision making (Ainsworth and
Deines, 2019).
 Cost estimation: It aids in recording the all information of the transactions and
the cost of any expenses to plan better for the future. It helps to improve the
revenue by analysing how much expenditure company will spend on the goods.
In this there is comparison of historical or present data gives the idea that