Managerial Accounting: Evaluating Role of Management Accounting System

The report evaluates the role of management accounting system and the provision embedded in the realization for understanding the value of accounting information in relation to the market concept. It discusses specific examples of different types of management accounting techniques and their relevance in contemporary organizations.

Managerial accounting
Managerial Accounting
Name of the Student
Name of the University
Author’s note

1Managerial Accounting
Executive Summary
The report is emphasized in creating awareness for managerial accounting in the focus of
evaluating role of management accounting system and the provision embedded in the realization
for understanding the value of accounting information in relation to the market concept that is
structured in terms of market concept.

2Managerial Accounting
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Solution to question 1..................................................................................................................3
Solution to question 2a................................................................................................................5
Solution to question 2b................................................................................................................7
Solution to answer 3....................................................................................................................9
Solution to question 4................................................................................................................11
Conclusion.....................................................................................................................................15
Reference list.................................................................................................................................16

3Managerial Accounting
Introduction
It is focused on the purpose of developing the understanding of purpose and the usage of
management accounting system. Usefulness in helping out the managers on deriving them to
determine about the particular situation that are mainly associated to make informative decisions.
The report effectively discusses about evaluating the role of management accounting methods
with enhancing the evidences from the case that is associated with the company. Identification of
the specific examples of different types of management accounting techniques are discussed
effectively. Real-life Company is taken and then it is being compared and contrasted upon the
findings related to the report. Relevance on the conclusion in making on the relevance of
management accounting standard are discussed effectively. 4 types of specific outcomes are
discussed effectively with each of the articles in accordance of research findings in competitive
performance that is related to the environment.
Discussion
Solution to question 1
Identification of 3 specific examples of management accounting method
Three types of specific examples related to the management accounting system are ABC
analysis, just in time costing system, Total quality management cost system. Each of the part is
discussed below with considering specifications:
ABC cost analysis
This is usually a costing method which is been recognized as the identification activity
within an organization and it is been assigned the cost of each activity considering to all the
products and services. These are accordingly based to the services they usually provide by

4Managerial Accounting
recognizing the actual level of consumption measured by each of the activity (Korhonen, David
and Gomez. 2018), the model is also specified in order to facilitate converting into direct cost
that is being initiated into comparing value of conventional costing used into it. However, in
comparison to the chartered institute of management accounting they usually define this concept
quite separately which is inducted in reasoning by involving the costing and monitoring activities
by tracing the usual recognition of resource consumption and involving the final outputs of
costing method. These are assigned with basics of cost objects method through maintaining the
rubrics of cost to output activity.
Just in time cost system
Just-in-time cost system is a management strategy that is mainly aligned to raw material
orders which is mainly belonging to suppliers directly with considering the production schedules.
Companies specifically employ the inventory strategy which is focused to increase the level of
efficiency and then decrease the waste by receiving the amount of goods only in relation of needs
required by them. It is mainly focused on the aspect of required degree of demand incurred by
the clients in need for production procedure, the attribute mainly decrease the inventory cost
associated with it. Forecasting the demand accurately is mainly attributed with skillful inventory
system. It is the function which is generally concept in accordance for holding sufficient
inventories in order to have enough amount of product for absorbing the maximum relation to
market demand.
Total quality management cost system
Total quality management is focused on the continual process of deducting as well as
reducing the amount of eliminating the procedure through manufacturing, streamlining supply

5Managerial Accounting
chain management. Improvement of the customer experience with meeting the demand and
ensuring where employees are generating higher speed of acknowledgment that aiming to hold
several parties which are involved vigorously in producing accounting process for owner where
the overall quality of the final product is maintained effectively and efficiently (Love. 2018).
Solution to question 2a
Management accounting in reference to contemporary organization
It is the procedure which is mainly included in the designing section and also included in
the concept of accounting procedure elected within the organization. However it cannot be
possible to regarded in the set of fixed rules that are usually accompanied but management
accounting methods are accorded to achieve organizational goals through improved source of
decision-making poured by the managers and the employee of the organization. There are usual
concepts of management accounting regarded through the procedure are generally included in
the decision-making theory of the conceptual framework of the company. It mainly applies in the
concept of usage in accounting procedure within the firm (Cryer, Robinson and Vasiliev. 2019).
Through rapid changing of technology generated within the company, modern methods are using
appropriately in moving the concept of long-term procedure in quality management in order to
avoid the traditional conditioning of the system. It is the process which is mainly effective in
sectorial concept being applied to maintain the quality and rapid adopting the changes effected in
the market. Greater amount of shares and increasing the competition through widening source of
opportunities segregated throughout the market where people are open handedly welcoming the
approach of global changes. According to the concept of the selected company of the associated
article. It also applies proper concept of the products in which the situation is signified with

6Managerial Accounting
proper analysis and also moving towards long-term view of the organization analysis which is
even highlighted with greater analysis of the pricing concept.
However, introduction of the advanced costing attribution mainly helps to develop better
features of the organization. ABC costing technique according to the chosen company, inherits
betterment in evaluating the systematic growth associated in order to maximize the benefits in
order to fix up the situation emerged within the selected company (Korhonen, Honkasal and
Seppälä. 2018). Amount of pressure that is being implemented in the range of accounting
technique, which is actually maintained by the organizational structure for incurring better
degree of profitability. Range of management accounting that is usually employed by the
companies of a particular country in the relation of profit maximization in the market
segmentation. However these are the decisions that is mainly associated by helping out the
managers in order to take up the right decisions for making useful allocation of the resources and
in the other hand to make sustainability of the resources according to business standard.
The role of management in the concept of practicing efficiency within the organization
helps to generate different goals and also maintaining the combination of objectives that are
mainly focused in the development of organization (Cryer, Robinson and Vasiliev. 2019). For
example, it is helpful in developing the rules and procedure associated in the process of
maintaining rules of the organization. These objectives are generally being attributed with
managing and also selecting a systematic vision of distributing goals of organization selectively.
Planning maintained by the organization in order to gathering knowledge and operating goals,
which generally help to curb down the poor performances,assigned to the people in the
organization. This accounting system is basically a controlled system which is generally an
approach which is helpful in associating the performance domain that is being attributed for

7Managerial Accounting
obtaining final benefits and action cost which generally involves principle of management. The
objective of the company is to maintain the performance evaluation of the objective resolution
practiced in the company. Another example associated with the concept is determined on
decision-making planning, facilitation functions, presentation information and it also includes
facilitation functions specifically. Effective usage of budgeting apportions marinating the
concept in different levels in determining the effective usage of attribute to capitalize the
feedback of controlling techniques that is in particular requiring the understanding of interaction
between the techniques that are suitable to meet the goal or objective within the system (Autor,
Dorn and Hanson. 2019).
Accounting management is also helpful in the context of position the technique that is
being practiced effectively in order to update the techniques and also facilitate motivation to the
end customers with proper organizing with the goal of leveling the demand and supply concept
within the organization who is interestingly controlled by the management.
Solution to question 2b
In accordance to the present data that is being rendered for the purpose of implementing
the probable accountings standard of consideration in relating with the ratio of selling, general
and administrative cost management (Wisbauer 2018). Such information is also related to the
inefficient cost and management procedure, which is generally, belongs beyond the managerial
control. Such information is even, can represent the probable future loss of the company that is
imperfect in considering the consequences which would be faced by them (Kotler et al. 2018).
However, on the contrary it is depend on the potential creation of individual intangible assets,
which are used to enhance during the implementation of such procedure in any company. The
main origin of such aggregate effects is influenced due to the implementation of consideration

8Managerial Accounting
relating to the operation earning. Such effects are generally functioned on behalf of earning the
future revenues that are probable to make some gentle impacts that would be created upon the
future sales, cost of goods sold. However, such effects can be easily segregated with some
different concepts. For example different costing methods are used in case to evaluate the
individual components value, like the implementation of Activity Based costing method for the
valuation of inventories (Charness et al. 2018). Cost sickness is mainly utilized for providing
feedbacks relating to distinguishing with the section where they usually separate between the
periods of failing and rising concept in the sales function of the organization. It is generally
consider as the reason of maintaining the concept relating to inheriting functions of maintaining
the positive impact of the organization.
Such evaluated results are also used to provide functions of supporting that normally
effects on the cost efficiency, which is created by the resourceful source of segmenting the
empirical effort of individual cost efficiency. This concept is also used to provide necessary
helps to the organization for the purpose of incremental in the course of inheriting through
segmentation effectively (Kajola et al. 2019). Normally, an organization does not provide
preferences to use the concept of just-in-time approach that relating to the costing system. Such
system is normally used to discusses about the materials which is acquired most earlier are now
actually selected. This is generally one type of costing effect which is clearly provide some
sufficient helps for the purpose to control the problem of argument which is usually takes place
between the company and the individual suppliers. The main functioning section of the concept
mainly defines the surplus effect of the scenario analysis that is being modeled with the focus to
delay the unexpected rise in the market sectors which has been increased unduly. Normally
understanding the different conception that is being used to generated heavily for protecting

9Managerial Accounting
themselves from the present scenario where there many rise in sales and also effectively there are
many fall in sales. The concepts of Descriptive statistics are mainly originated with the
relationship between the company’s SG&A ratio with along the mean of individual industry.
However, this concept of evaluation of individual costing technology have some useful benefits,
normally which was missing in case of considering the computation, that is eventually not able to
present in the other type of cost evaluating techniques.
Solution to answer 3
Conclusion on relevance of MAS
There are important features which assist today’s company or business with considering
the application primary cost relation effectiveness (Zoph et al. 2018). Among which, relevant
cost analysis is considered as the most important function where management accountant is
considered in conducting the feature of relevant cost which gently helps to determine what are
the existing expenses and it also helps to give suggestions where certain activities get failed. It is
however done much before the organization tales any action, it is the duty of the internal
accountants to figure out the most feasible tactic in order to increase the amount of profit. It is
the justification which clearly estimate the management accountants for figuring out the analyze
of different sales channels, products, services and also marketing activities are recorded in order
to discover the best profitable scenario that are most profitable in consideration of the business
model. Audience targeting is also considered in making the usefulness of paying special attention
to the customers (wesfarmers.com. 2019). A unique condition in the scenario, which refers that
it, is usually represented as the anchor of the business function which is mainly created in order
to secure the best feature out of it. Age and gender, location, income level, academic
background, lifestyle, personal values; these are the attributes which are mainly focused in

10Managerial Accounting
securing the best solution out of it. The average customer is dignified by considering the level of
workloads which are required by them to be done by the employees.
In accordance to several specialists that are gently included, that management accounting
must possess the responsibility that mainly helps to analyze the social value among the
employees which is really helpful in making the best out of it by investing additional time along
with referring the resources in markets which enable to bring out the long-term perspective out
of it.
Make or buy evaluations is the most often and most expensive segment referred in the
business which is basically the most crucial segment in referring to be mostly sure out of it by
enabling options that are mostly suitable according to the demand focused to the company.
Making products out of the own manufacturing unit and make those goods buy from the third-
party provider (Kajola et al. 2019). It is also helpful in terms of evaluating the real cost of the
business and then determining that how much it is appropriate in order to produce items from the
core manufacturing team and helping the external clients to purchase those goods effectively.
The other most important aspect that is described is known as defined budgets. It is nothing
related to the random movement when it refers as the budgeting function. On the opposite
function of the concept, budget decisions are considered as it must comply with the sales history
and also referring to define the value of defining the investment in apportion to the future actions
embedded particularly. They are also helpful in consideration of marketing campaign, new sort
of products, specialized project department and finally with aligning or undertaking associated
feedback effectively (Coghlan. 2019).

11Managerial Accounting
Controlling the important aspect of the management function in accordance to the
management accounting and namely it also evaluate the sort of works that is being helpful in
terms of deriving conclusions in particular relation of the financial performance.
Solution to question 4
Specific outcomes
This particular procedure helps us to analyses the influence the concept about the effect of the
ratio which has been implemented in revising the calculation that has been featured on the
changes that are mainly focused on the future sales, cost of goods sold and also the cost
associated with it (Zoph et al. 2018). During the first study approach of the analysis of influence
which has been conducted in terms of in-depth analysis. Ratios, which are undertaken in the
concept of ensuring about throughout relativity that is being endured on the response, created in
accordance to the outcome which came in relation to the operation earnings. It shows the
increasing ratio and also the changeable amount of costs that are been outflowed by the company
where current increase of the cost inefficiency leading to the significance decrease in ratio
allocated by the company.Different module has been implemented for organizing this attribute of
management accounting scenario which mainly secure the optimal learning outcomes (Sheets.
2018).
It helps to analyze the major principle of accounting technique, it also discusses about the
place of financial procedure and accounting technique within the particular business. Next step
discusses about summarizing the role of finance and accounting standard with reference to the
appropriate illusion by concluding the financial principal. Demonstration of the ethical

12Managerial Accounting
application being recorded to the field of accounting is a useful technique which helps out the
function in order to increase the value of loyalty and degree of trust within the company. The
conception of outlining through variety of accounting standard with considering evidence of
variety throughout internal roles internal and combining with external attribute to the business; it
is a differential consideration that is being segregated between functional and the divisional roles
of the organization (Korhonen, Honkasalo and Seppälä. 2018). It also helps to understand the
legal clauses of implications which is generated within the business organization that is being
related to the accounting standard. Information which are provided by the conceptual task helps
in relational phase that assists to reflect in a positive condition of the annual report of a
corporate(Shingo. 2019).
It helps to understand the value of elements of common financial statements present in
the relation market value. It helps to understand about the definition of transactions. It helps to
determine of accounting equation solving with referring the key elements of financial statements
and also the double entry bookkeeping scenario. It also helps to recur the importance of cost
analysis and managerial accounting each by deciding their own attribution for the generic
purpose added to it. Value chain analysis gets understood by preparing the report and the concept
of direct and indirect cost are associated with the conditioning situation involved in it. Overhead
rate, manufacturing cost and unit cost are the items are helpful in resolution of the concept.
Exploring the cost types in addition to effect the sort of decision-making analysis, differential
cost analysis with referring the valuable description avoidable costs value, it also discusses
avoidable cost, recognizing the sunk costs. These attributes mainly helps in defining the
conceptual analysis of the differential feature that is being enhanced with appropriate concept of

13Managerial Accounting
differential concept analyzed for the efficiency of differential purposes (Davis and Whitley.
2018).
Recognition of relevant cost and making profitability issues for focusing to the common
business decisions. Identification of the data that are appropriately needed in relation to the
support, which is mainly supported in the relation of make, or buy decision. Information
regarding the possibility gearing in the concept of data that are generally needed in order to
support the face of dealing with the conception of different costs that are gently related for
different purposes incurred within the company.

14Managerial Accounting

15Managerial Accounting
Conclusion
It can be concluded from the above topic that management accounting standard is useful
on the context of usefulness in helping out the managers in order to aid themselves in taking
beast decisions for the organization. It is critically designed and planned the report by collecting
the data by identification of three specific examples in order to measure the different types of
management accounting related to financial behavior. These techniques are effectively helpful in
helping out the managers in allocating the resources. Comparison and contrasting the effective
resources in proper allocation of the management accounting purpose by taking two real life
companies are regarded successfully and recognition with the substances allocated to them.
Relevance in the competitive market by enhancing in management accounting system, four types
of specific outcomes where lessons are generally learned with the management accountants
associating in learning association.

16Managerial Accounting
Reference list
Autor, D., Dorn, D. and Hanson, G., 2019. When work disappears: Manufacturing decline and
the falling marriage market value of young men. American Economic Review: Insights, 1(2),
pp.161-178.
Charness, G., Eckel, C., Gneezy, U. and Kajackaite, A., 2018. Complexity in risk elicitation may
affect the conclusions: A demonstration using gender differences. Journal of Risk and
Uncertainty, 56(1), pp.1-17.
Coghlan, D., 2019. Doing action research in your own organization. SAGE Publications
Limited.
Cryer, R., Robinson, D. and Vasiliev, S., 2019. An introduction to international criminal law and
procedure. Cambridge University Press.
Davis, D.C. and Whitley, R.J., 2018. Enhanced Stationkeeping Maneuver Control Technique for
Delta-V Cost Reduction in the Korea Pathfinder Lunar Orbiter.
Ericsson, K.A., Hoffman, R.R., Kozbelt, A. and Williams, A.M. eds., 2018. The Cambridge
handbook of expertise and expert performance. Cambridge University Press.
Home - Wesfarmers . Wesfarmers.com.au. 2019. Retrieved 16 September 2019, from
wesfarmers.com.au/
Kajola, S.O., Sanyaolu, W.A., Alao, A. and Ojunrongbe, O.J., 2019. Liquidity and Profitability
Dynamics: Evidence from the Nigerian Banking Sector.
Kajola, S.O., Sanyaolu, W.A., Xavier, K. and Dutt, J., 2019. Liquidity and Profitability
Dynamics: Evidence from the Nigerian Banking Sector.

17Managerial Accounting
Korhonen, J., David A. and Gomez, J., 2018. Factors that influence success implementation of
government accounting standard (Sap) based on acrual in the government of the districts/cities in
North Sumatera Province. Journal of Management Information and Decision Sciences, 21(1),
pp.1-14.
Korhonen, J., Honkasalo, A. and Seppälä, J., 2018. Circular economy: the concept and its
limitations. Ecological economics, 143, pp.37-46.
Kotler, P., Keller, K.L., Ang, S.H., Tan, C.T. and Leong, S.M., 2018. Marketing management:
an Asian perspective. Pearson.
Lin, Y., Zheng, L., Zheng, Z., Wu, Y., Hu, Z., Yan, C. and Yang, Y., 2019. Improving person re-
identification by attribute and identity learning. Pattern Recognition.
Love, M., 2018. Promoting Vocabulary Knoweldge In Inclusive Science Classrooms:
Comparison Of Instructional Methods.
Sheets, N.C.B., 2018. Non-Consolidated Financial Statements. Policy, 2017.
Shingo, S., 2019. A revolution in manufacturing: the SMED system. Routledge.
Wisbauer, R., 2018. Foundations of module and ring theory. Routledge.
Zoph, B., Vasudevan, V., Martin, K. and Le, Q.V., 2018. Learning transferable architectures for
scalable image recognition. In Proceedings of the IEEE conference on computer vision and
pattern recognition (pp. 8697-8710).

18Managerial Accounting
Zoph, B., Vasudevan, V., Shlens, J. and Le, Q.V., 2018. Learning transferable architectures for
scalable image recognition. In Proceedings of the IEEE conference on computer vision and
pattern recognition (pp. 8697-8710).
Zou, X., Scholer, A.A., Higgins, E.T. and Higgins, W.E.T., 2019. Risk Preference: How
Decision Maker’s Goal, Current Value State, and Choice Set Work Together. Psychological
review.