Managerial Accounting

Managerial Accounting

Abstract
The management accounting system is considered to be the system through which the accounting
of the company’s financial information and the assets are done. The internal system that the
organisation uses so as to measure and achieve the desire of management in the company.
Through this system the managers of the corporation are able to take the decision and fulfil the
objective of maximising the Functioning of the corporation. there are various models of defining
the MAS which is discussed in this report. The current report is based on the case study of the
modern management accounting system which is implemented by the various manufacturing
corporation in the country. In this report the analysis of the diverse types of management
accounting system would be done. Also, the evidence from the case corporation would be
discussed so as to achieve the objective of understanding the management accounting systems.

Contents
Managerial Accounting...................................................................................................................1
Abstract............................................................................................................................................3
Main body........................................................................................................................................4
1. Identify any three (3) specific examples of the different types of management accounting
methods and/or techniques from the case....................................................................................4
2. Are MAS relevant to contemporary organisations?................................................................5
ii) Compare and contrast this finding with one other journal article you will need to find that
has discussed about management accounting systems in another real-life corporationor
companies. Did this second study have similar findings as the first chosen article, or mixed
and/or different findings?............................................................................................................7
3. What conclusions do you make about the relevance of MAS in today’s competitive and (in
most cases), uncertain business environment?............................................................................8
4.Provide four (4) specific outcomes or lessons learned from each of the two articles’ research
findings that will be useful for management accountants in Australian companies to learn
from, and justify your answer......................................................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

Main body
1. Identify any three (3) specific examples of the different types of management accounting
methods and/or techniques from the case.
A contemporary accounting method is used by various companies in the world so that they are
able to maximise the performance of the internal management of the company. The management
accounting method is used to analyse the profitability of the firm and the depict the cost of the
item that they sell in the marketplace. The benefit that is given to the employees of the
corporation can be depicted by the management accounting technique (Bobryshev, et. al., 2015).
According to the author of the article, there are various accounting techniques that are various
accounting techniques as defined in MAS. Some of these techniques include Activity-based
costing (ABC), Balanced Scorecard (BSC), Just in time (JIT), value chain analysis (VCA), Total
quality management (TQM). These techniques help in bringing the insights of the accounting
which are related to the management of the cost of the company. these are described in brief as
below:
 ABC Analysis: This is the approach which is used for the purpose of classifying the
inventory items which are based on the consumptions. The consumption value is used to
depict the entire value of the item that is spent over a period of time. This is the method
that is founded on the Pareto principle where the management uses matters and its
implications for this purpose. Here in this approach the classification is made on the basis
of the items that are having the highest consumption to the articles that are having the
lowest consumptions. The approach is used in the manner where the highest used or the
highest turnover inventory is classified on the basis of ‘A’. the inventory that is interclass
is classified on the basis of ‘B’. while the article or the product of the corporation that has
the lowest consumption are classified on the basis of ‘C’. The business in the industry is
not always same and the ups and downs come on various occasions. This helps in
maximising the performance of the corporation as a whole. As in the article, it specifies
that this tool helps the organisation to achieve the actual cost management accounting
technique so as to check the volumes of the product that are rapidly sold in the market
and those which are not at all sold in the market.