Managerial Accounting Report 2022

Managerial Accounting

MAS
Executive Summary
With the due passage of time management style has undergone a sea change and hence, the
management accounting system changed for the better. The traditional accounting system is
rarely seen in the current scenario and is replaced by the new management accounting
system. Contemporary accounting system such as TQM, BSC, and JIT has assumed a place
of special importance owing to the flexibility and being result-oriented. The current report is
based upon the Management Accounting system and to conduct the study two articles about
MAS has been undertaken. The report initiates with the introduction followed by the
application of MAS in the organization. In the end, the outcomes are discussed in the light of
both the organization
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MAS
Contents
Introduction......................................................................................................................... 3
1. Management Accounting methods/ techniques used in the 1 article or study................3
2. MAS Relevancy in contemporary organizations..............................................................4
i. Evidence from the case study....................................................................................... 4
ii. Comparison with the second study...............................................................................5
3. Relevancy of MAS in an uncertain business environment...............................................6
4. Specific outcomes........................................................................................................... 6
Conclusion........................................................................................................................... 8
References.......................................................................................................................... 9
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MAS
Introduction
MAS is considered to be a very important tool which helps in supporting the business function
and also evaluating the results of different business processes. In this report, we will come to
know about the functions of MAS in the present scenario. The application of MAS has been
discussed in this report for both the case studies that are provided. The traditional accounting
approach has become obsolete and therefore does not provide the desired research. So,
many other alternative approaches have been adopted which would help in the decision-
making process of the business.
The management accounting tools that have been used for preparing this report is considered
to be very important support of information relating to the business activities. These tools are
useful for the management not only for evaluating the results but also help in improving the
performance of the company by modifying the production process. There are a large number
of advantages because of the contemporary accounting system but this system requires a
proper implementation for getting the best results (Lynch, 2011). This Management
Accounting system is considered to be very famous because it helps the management to take
correct decisions and give them a comparative advantage which is required at present. This
report will provide us information about the different tools that are included in the
management accounting system and how is it useful in the contemporary organization
(Sunarni, 2013).
1. Management Accounting methods/ techniques used in the 1
article or study
· Activity-Based Costing (ABC)
ABC technique helps an organization in analyzing costs apportioned to each manufacturing
activity. With the help of the ABC technique, a manufacturing concern can identify the
activities that consume a higher level of resources. Upon identification of such activities, the
management can take necessary decisions to reduce or eliminate the occurrence of
unnecessary costs that are absorbed by these activities (Lee et. al, 2015). ABC is also known
as SIC or selective inventory control. Activity-based costing technique allows the
management of a manufacturing company to understand the behavior of all the activities and
manufacturing processes. This makes the apportionment of costs easier as the management
can assign costs to activities as per what is necessary. This will ultimately help in the
elimination of unnecessary costs. With the help of the ABC technique, the management can
analyze the costs consumed by each activity and hence, cut on unnecessary costs. This will
ensure that the decision making of the management is appropriate and aligned towards the
achievement of organizational goals.
· JIT – Just In Time
This mechanism is used by manufacturing concerns for identifying the underlying obstacles
(Hopper & Bui, 2016). Company A can use Just in Time mechanism to prevent unnecessary
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