The Role of Management Accounting Systems in Companies

MANAGERIAL ACCOUNTING 1
ROLE OF MANAGEMENT ACCOUNTING SYSTEMS AND THE PROVISION OF
ACCOUNTING INFORMATION FOR THE CASE COMPANY
By [Name]
Course
Professor’s Name
Institution
Location of Institution
Date

MANAGERIAL ACCOUNTING 2
Abstract
The objective of this study is to evaluate the role of Management Accounting Systems
in companies. These systems are responsible for providing accounting information that can
be used by managers to execute their functions efficiently and effectively. This paper
explains the relevance of Management Accounting Systems to organizations, for example,
the Multinational Manufacturing Company in Australia. For the effectiveness of this study,
another journal was chosen to compare its findings with the journal article in the question.
Different outcomes and lessons were drafted from the two journal articles which could be
used by the management accountants to ensure and increase organizational performance.
From the findings during the survey, it was discovered that management accounting systems
and techniques like modified ABC, TQM, and benchmarking influence organizational
performance. To ensure better organizational management, the right decisions must be made
by all managers at different levels of management. Usually, the decision making at lower
levels is considered more significantly relevant to the contemporary organization. The
findings also indicated that although there is a greater relevance of management accounting
information, it was good practice for the manufacturer to ignore some system components
that were not helpful to the organization.

MANAGERIAL ACCOUNTING 3
Table of Contents
Abstract......................................................................................................................................2
1.0 Introduction..........................................................................................................................4
2.0 Types of Management Accounting Techniques...................................................................5
3.0 Relevance of Management Accounting System..................................................................6
4.0 Comparison of the case study’s findings with a different Journal Article...........................9
5.0 Conclusions made about the relevance of MAS................................................................10
6.0 Lessons learned from research findings.............................................................................12
Conclusion................................................................................................................................14
References................................................................................................................................15

MANAGERIAL ACCOUNTING 4
1.0 Introduction
Management accounting refers to the series of activities in management whose aim is
to identify, analyze, and measure information in finance. Management is usually responsible
for planning, organizing, evaluating, and controlling all activities in the organization to
ensure proper utilization of resources. Management accounting cuts across all levels of
management from top officials to shop floor personnel. Different managers at different
managerial levels are responsible for making different decisions that are of help to the proper
and smooth functioning of the organization (Ahmed 2017, p.342).
Management accounting has been evolving with changes in technology, for example,
in the business and finance sector. Due to these factors, different management tools are
designed to give the right information to carry out budgeting, draft performance reports, and
measure product costs(Ameen, Ahmed and Hafez 2018, p.1). Tools like ABC, Balanced
Scoreboard, Just in Time, TQM, etc. are being used in Management to provide crucial
information not only at organizational but also at an operational level. As a result of changes
in manufacturing and information technology, there has been an advancement in management
accounting which has also contributed to new techniques being introduced.
Over the past years, there has been a change in the industrial sector due to the
volatility of environmental and industrial conditions. A good example has been the
introduction of Information technology in most sections of the organization. Due to this, the
role of the management accountants is likely to be menaced by information specialists and to
reduce this; management accountants are forced to become flexible with a wide range of
knowledge, so that right information is provided within a right period. To ensure flexibility,