Impact of Management Accounting System in Multinational Manufacturing Company

Unit Code HI5017
Unit Title Managerial Accounting

MAS
Abstract
Management accounting system plays a dominant role when it comes to the management of
activities and specifically when it comes to areas such as planning, decision-making, control,
and others functions. The main aim of this study is to evaluate the impact of MAS in the case
of a multinational manufacturing company. The report initiates with the performance of MAS
in the contemporary organization and different tools of MAS such as ABC, TQM, Value chain
analysis, etc. secondly, the report distinguishes the outcomes of the current case study with
that of another selected case study that pertains to the medium-size production company.
The report strives to explore different factors that shed light on the system of ABC and
evaluate the changes that have been brought by dint of it.
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MAS
Contents
Introduction........................................................................................................................... 4
1. 3 examples of MAS from the case study..............................................................................4
2. Relevancy of MAS in contemporary organizations.................................................................5
3. MAS in competitive uncertain business environment.............................................................7
4. Specific outcomes............................................................................................................ 9
Conclusion.......................................................................................................................... 12
References........................................................................................................................ 13
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MAS
Introduction
The organization must have a well defined MAS that helps in attaining the desired results.
The organizations are undergoing a phase of challenges and cut-throat competition hence, it
calls for proper utilization of the financial and managerial accounting techniques. It is
important that the key parameters of the business need to be carefully analyzed by
ascertaining the information from different part of the business. Considering this, the role of
MAS in the business has become prevalent and prominent. The traditional approach of
accounting has become outdated as it fails to provide the desired research. Hence, it has
been replaced by alternative methodologies that help in guiding the business decision.
The managerial tools are provided in the report that can be said to be a powerful supporter of
the business information. Such tools not only helps in the management to ascertain the
outcomes but even helps in making changes to the process of production and provision of
services that is highly advantageous in enhancing the performance. The advantages gathered
by contemporary accounting stands huge but it needs to be noted that the successful
implementation is essential in creating the best impact. MAS has become popular because it
aids the management in the process of decision making and provides a comparative
advantage which is the need of the hour (Lee et. al, 2015). The major goal of the study is to
study the tools of MAS and how it helps the contemporary organization.
1. 3 examples of MAS from the case study
The manufacturing company –A implemented system that comprised of different functionality.
It surpasses different business function. The company used SPA R/3 that consisted of ABC,
TQM, JIT, Balance scorecard and JIT. Hence, from the study it is clear that the company
used a combination of different mechanism however, all were not used.
As the company was under pressure and undecided to go for a particular MAS tool, it decided
to hedge and implements a combination of different techniques. Company A was into
manufacturing and consisted of few raw materials and a countable number of steps when it
comes to the process of manufacturing. The system utilized the concepts from ABC, BSC,
and JIT and extracted the key aspects from them.
 TQM - Total Quality Management
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