Managerial Accounting : Sample Assignment

Managerial
Accounting

ABSTRACT
Purpose of this report is to identify the important of management accounting system in
multinational organization. It help the manager to develop strategy that required to perform in
order to achieve business gaols & objectives.

Table of Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
Identification of different types of management accounting methods and techniques from
given case - .................................................................................................................................1
QUESTION 2...................................................................................................................................3
Relevance of MAS in the context of contemporary organisations - ...........................................3
QUESTION 3...................................................................................................................................5
Role of management accounting systems in today's business environment................................5
QUESTION 4...................................................................................................................................6
Learning outcomes from selected articles and how it will be useful for management
accountants...................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Managerial accounting is defined as identifying, evaluating, measuring, analysing
and communicating the the information and data to the management of the business so
that they can make the decision related to manufacturing business in order to achieve
the business goal and objectives. This is the process that is generated the
organisational reports and documents that assist to the manager in the decision making
process (Braun And et.al., 2014). The accounting is based on the accounting
techniques like budgetary control, cost system. This project report covers the different
type of management accounting methods and techniques from the case study. It further
covers compare and contrasting as per case study from the two article related to
management accounting tools. It also cover the relevance of MAS in the today's
competitive era of business environment and outcome, finding from the MA of the
particular organisation of Australian.
QUESTION 1
Identification of different types of management accounting methods and techniques
from given case -
Management accounting is elaborated as financial and non monetary data or
provision that assistance to the manager of the company to alleviate the gathered data
and information to measure the business data to know the profitability and productivity
is meeting is with goals and objectives (Butler and Ghosh, 2015). The function of the
MA includes different tools that can be adopted by a business to enhance the functional
and operational activities of the business. It help in the implementation of the business
function and strategies in order to redefine the long term goal as well as better
managing the operational activities. In the relevance of the presented case study, the
following systems have been identified and described below:
Just-In-Time (JIT) system:
This is the management approaches that is aligned with manufacturing unit of a
particular business that includes a process of order of the material as per the production
schedule. This is the process of the inventory management techniques at the production
unit that avail the raw-materials at right time of the manufacturing of product and
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services. This stock strategies may increase the efficiency and decrease the waste from
the production process. Application of the inventory management at the production unit
may decreases the cost of inventory and diminish the waste of material. This tools
forecast the level of the production and demand of the customer to produce the goods.
JIT techniques control the production by holding the adequate level of the inventory to
full fill the maximum demand of the customer (Calvo-Mora and et.al., 2014). In the
present case study of the multinational production enterprises can enhance the
efficiency of the stock by procuring the material to avail at right time. This management
tools tools enhance the productivity and efficiency of the processing unit. As it totally
focused approaches of the to systematic flow of the goods of inward and outward
material at output of the production. It includes assorted types of stock list such as Raw
Materials,Work-in-Progress, Finished goods etc.
Activity Based Costing (ABC):
This is cost approaches that identifies the production action and activities at the
organisation that allocated cost to each action to the product as per the actual
consumption of the material. In the reference of the Contemporary MAS, it help in the
organisational goal by providing a effective cost structure and its management practices
(Collier, 2015). This tools provide a mode or picture to the cost management related to
carry out the cost operation that affect to the production expenses. ABC also helps in
change or get rid of impairment from traditional cost accounting systems,and enables
to accuracy in cost determination for the related product and goods. It is computed by
assigning the indirect expenses to adds overall cost and divided by the cost driver. In
this particular case study, this tools make a positive impact in assigning the cost to
particular activities that further identifying the total cost based on the production level.
Total Quality Management (TQM):
This is well structured approaches to manage the overall performance of the
organisation. It is totally focused on the improve the quality of the business output and
its processes through internal practices of the business. This is the important tools that
is relevant to all structure and levels of the business and mainly lays its focus upon the
continues advancement of all those business processes that are mainly related to the
quality of inputs and outputs (Hietschold, Reinhardt and Gurtner, 2014). In the context
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to this case scene, implementation of TQM, enables to eliminate or belittle errors that
may incur during the commercial enterprise process of production. It may enhance the
capacity of worker and strengthen the job culture, facilities, artefact, and so on in order
to assure the long-term achievement. As a result, it enhances safety to the worker as
well as the overall client experience that may provides the competitive advantage to the
multinational company by developing the business environment.
QUESTION 2
Relevance of MAS in the context of contemporary organisations -
In the Morden era of the business, it is not a easy task to understand the
changes in the business environment. As result of these situation, business
organisation choose the different variety of management accounting system in the
business firm that address the business problem and issue (Kravet, 2014). In the same
manner the MAS are relevant to the contemporary organisations.
i) Evidence from Multi-national Manufacturing Company:
In the present case scenario, management of the company A use to key
performance indicator at level of the production for the multi national company. This is
tactics of the business to ascertain the performance of the firm in relevance with defined
objectives and goal related to company A. In relevance to outside and internal
shareholder such as employee, investor and strategic manager can be benefited with
qualitative and quantitative collected information and data from the business reports and
position (Kwak, 2015). Company A implemented the various system and features that
includes a wide range of company' s task in respect to set a mechanisms. Company A
that will determine the
relevance of the system by making the decision regards the MAS of ABC, BSC, JIT,
TQM, standard costing and benchmarking. These process provides a better control to
the business in better functioning of the business activities. For example a manufacturer
use the process of the raw material to make a finished goods. TQM system ensure the
availability of the goods item at appropriate time and management of the quality
perspective. This system is coordinated the certain material and expenses elements
that generalized the uses of the this system. This may implies the certain engines to
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distribute costs, handle the score cards, establish comprehensive internal and external
standard to use some resources in relevance of the TQM iteration of safety.
ii) Compare and contrast of journal and findings related to management accounting
systems in company:
In the present scenario of the case study relevant to management accounting
system, some of the business make the competitive advantage in the organisational
firm to make continuous operation in the long run of the business (Management
accounting systems in another real-life, 2019). Company must responses the market
condition that available in the overseas market and survive in the long run business by
handling the pressure of the business environment. It is required to the business firm to
measure the risk factor at different location of the business also at overseas market. In
the this particular case study discussed about the modern management accounting
system at manufacture business of multinational company and the other chosen case
study research in management accounting by north American that concluded the certain
management accounting system like cost management, cost driver, information system,
capital budgeting and investment decision. Companies needs to evaluate the tools and
techniques to implement the advance manufacture technology that enables to decrease
the expenditure and enhancement of the quality to establishment the quick production
technology. In addition, many organisational structure are decreasing the production
efficiency that may lead to current business economic crisis that influence the business
position in a different manner worldwide.
In the further, case study of the multinational company's management accounting
system modern era, there are various steps and proses enhance the productivity of the
business organisation by improving the process of the manufacture and find out the
difficulties in the risk that are involves at international level. These financial and non
monetary required to assorted in the MAS to meet the requirement of the business data
and accounting structure needs to provide meaningful data (Lai and Cheng, 2016). In
the other case study that provides the research based data that includes the cost
management system in the business operation to attain the proper cost structure of the
production unit. Capital budgeting and investment decision that are specified the
investment proposal that are benefited to the business in the future in providing the
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profitability of the projects. For manufacturing companies, to accomplish the output, it is
necessary to more advanced business enterprise processes. The data and information
are that unable to assist companies fierce competition that needs to be revised to suit
managers develop data requirements in modern manufacturing unit. Managers requires
broad information set to make economic and faster process.
QUESTION 3
Role of management accounting systems in today's business environment
In the current business world the management accounting tools play a crucial
role that deliver the best procedure in the business and its ease the business scenario
to handle the prospective role for the processing unit (Modell, 2014). The various type of
the system that are important to the business function that help in the competitive and
uncertain business environment. These are defines as under:
Increasing the customer value: In the current business scenario, customer are
the king of the market, it can be increased the services of the customer by feasible
competitive advantage. In this current business scenario, cost management is best
techniques to provides the cost structure of the company in order to enhance the
strategic cost information define most suitable approaches that output a competitive to
deal with competitive environment. It concentrate on customer valuation by
acknowledgement by after sale services and their feedback produced by the
management accounting process.
Cross functional perspective: It has been analysed that management
accounting system have different perspective & need and it will be depend upon the
task (Robinson, 2017). These systems will used from manufacturing to the distribution
of finished goods. It helps in improving client important in the business through
providing effective customer services. Management accounting systems helps in
improving production as well as profitability.
Improve efficiency and reducing time: In the organization, manager have to
ensure that every level of manufacturing process is very important. Business should
deliver goods & services through removing non value added goods on regular basis. By
using latest technology in the organization will help the manager and reduce their efforts
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to collect information for managerial purpose. By using management accounting
system, manager able to operational efficiency where manager use just-in-time tool to
manage their inventory level. By using TQM, organization able to remove error which
helps manager to develop future strategy.
Electronic business (E-Business): Management accounting systems are
electronic based software which helps the organization to record their daily transaction.
It further reduce manager's burden and helps in developing strategy which required to
perform in order to achieve business goals & objectives (Shi, Zhang and Guo, 2014).
These systems are important part of E-business which helps in communicating and
sharing information electronically. By using these systems software business able to
save their cost, time as well as efforts to collect information to the single platform.
From the above discussion, t has been concluded that management accounting
plays very important role in the multinational organization. It helps in collecting
information, developing strategy and decision making process.
QUESTION 4
Learning outcomes from selected articles and how it will be useful for management
accountants
In the given case study, management accounting systems used to evaluate
operational functions of the organization at each level. In context of Company A,
business follow various management accounting systems such as Total quality of
management (TQM), just-in-time (JIT), balance scorecard (BSC) or Activity based
costing (ABC). These accounting systems help the business in order improve
operational efficiency as well as effectiveness. In the current scenario, every
multinational organization follow these accounting systems in order to complete their
task and achieve effective performance which further helps in achieving business goals
& objectives. Australian company implement these systems in order to improve their
employees as well as business performance (Shields, 2015). Before implementing
these tools in the business operations manager have to provide various training so
employees become capable to perform task. By using MAS, manager able to evaluate
business performance and it will be done through comparing past performance with
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current outcomes. In addition, it help the business to improve individual performance
which enhance their productivity as well. It provide other benefits such as by using
management accounting systems organization able to grow in the global market.
Basically if any organization wanted to expand their business globally then they have to
follow various techniques and method to improve business operations and increase
working efficiency or individual as well as whole organization. In next few years, small
organizations also start adopting accounting system so they required professionals. So
they have to hire management accountant to manage financial information and present
in understandable manner. It further helps the manager to develop operational strategy
and use these information for future decision making process. Demand of accounting
systems as well as management accountant will increase and provide huge market
growth to the business and helps in achieving business goals & objectives.
In the second articles, it is all about the advancement of technology where
multinational organization forced to adopt manufacturing techniques for competitive
advantage. It further impact and provide useful information which required by the
managers (Wolf and et.al., 2015). Advanced manufacturing technology (AMT) used by
the multinational organization where they improve operational through performing some
actions. Such as reducing expenses, increase manufacturing process, improve quality
etc. After implementation of advanced manufacturing technique (AMT), manager found
that changes required in cost structure, it increase overheads expenses while labour
cost become lower element cost for the production. Some of the organization
experience that decrease in the overall efficiency of business due to global economic
crises.
In the today's competitive world management accounting use to evaluate all types of
cost and cost based activities which include manufacturing expenses. Manager analyse
various information which used to manage business but not disclose these information
with creditors as well as investors. Management accounting systems provide three
fundamental capabilities such as production operations, control and planning
assessment. Main objective to calculate cost is to minimise product cost which increase
the profit margin. At the time of production these cost are required to minimise like raw
material, labour cost and overhead expenses. It enable the manager to evaluate that
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how to minimise waste in the production and eliminate indirect cost which reduce overall
cost of product. With the help of technology advancement, business able to evaluate
each activity cost and organization able to obtain competitive benefits. By using AMT
method manager able to collect information for further decision making process (Xu
and Chen, 2016). Management accounting system helps in improving organizational
efficiency as well as effectiveness where advanced manufacturing technology helps in
providing various techniques to minimise manufacturing cost through reducing wastage
of inventory. If manager using more non financial information or future oriented
information then it helps in meeting organizational goals & objectives. All the above
mention information will be compared with the research of Dean & Snell (1996) where
Advanced manufacturing technology (AMT) has no effective result and does not impact
the performance as well. Non structure interview also support this statement that AMT
does not helps in improving organizational efficiency or effectiveness. Overall result
suggest that relationship between business performance and AMT is indirect so
manufacturing organization does not need to implement rather than this, business have
to follow management accounting systems which increase productivity as well as
profitability. Basically accounting systems helps in improving each activity and provide
useful information which helps the manager to develop strategy for future. Along with
this, it helps in reducing overall cost which maximise demand, increase productivity and
profitability as well.
CONCLUSION
From the above discussion it has been concluded that management accounting
plays very important role in the organization. It helps the business to increase their
operational efficiency as well as effectiveness. Management accounting system is one
of the effective tool that required to improve operational functions. By using various
techniques such as total quality of management (TQM), just-in-time (JIT) or activity
based costing (ABC). These management accounting systems helps in improving
production activities. Such as manage inventory level, reduce cost or detect error in
order to minimise overall cost for the whole production period. Now in the modern era,
management accounting system helps the multinational organization to maintain their
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records and it further beneficial for the manager to develop strategy and use in decision
making process.
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REFERENCES
Books & Journals
Braun, K.W. And et.al., 2014. Managerial accounting. Boston: Pearson.
Butler, S. A. and Ghosh, D., 2015. Individual differences in managerial accounting
judgments and decision making. The British Accounting Review. 47(1). pp.33-
45.
Calvo-Mora, A. and et.al., 2014. The relationships between soft-hard TQM factors and
key business results. International Journal of Operations & Production
Management.
Collier, P. M., 2015. Accounting for managers: Interpreting accounting information for
decision making. John Wiley & Sons.
Hietschold, N., Reinhardt, R. and Gurtner, S., 2014. Measuring critical success factors
of TQM implementation successfully–a systematic literature
review. International Journal of Production Research. 52(21). pp.6254-6272.
Kravet, T. D., 2014. Accounting conservatism and managerial risk-taking: Corporate
acquisitions. Journal of Accounting and Economics. 57(2-3). pp.218-240.
Kwak, W., 2015. Technological impact on teaching of online managerial
accounting. Procedia-Social and Behavioral Sciences. 176. pp.340-345.
Lai, K. H. and Cheng, T. E., 2016. Just-in-time logistics. Routledge.
Modell, S., 2014. The societal relevance of management accounting: an introduction to
the special issue. Accounting and Business Research. 44(2). pp.83-103.
Robinson, A., 2017. Modern approaches to manufacturing improvement: The Shingo
system. Routledge.
Shi, L., Zhang, H. and Guo, J., 2014. International accounting.
Shields, M. D., 2015. Established management accounting knowledge. Journal of
Management Accounting Research. 27(1). pp.123-132.
Wolf, S. and et.al., 2015. Controllers as business partners in managerial decision-
making: Attitude, subjective norm, and internal improvements. Journal of
Accounting & Organizational Change. 11(1). pp.24-46.
Xu, Y. and Chen, M., 2016. Improving Just-in-Time manufacturing operations by using
Internet of Things based solutions. Procedia CIRP. 56. pp.326-331.
Online
Management accounting systems in another real-life. 2019. [Online] Available through
<https://umexpert.um.edu.my/file/publication/00004718_71862.pdf>
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