Management Accounting System Case Study 2022

MAS
Abstract
The management accounting system has assumed a place of vital importance in the
organization owing to the management of activities. It helps in different areas of
planning, decision making, and other vital functions. Moreover, the managers get
immense help while laying down a strategy as MAS helps in providing vital information.
The present study deals with the impact of MAS in the multinational manufacturing
company. To conduct this study, two different articles are selected and the same is
compared for evaluation. The report describes the MAS and its applicability in the
organization with the help of the first case study that is modern MAS in the multinational
manufacturing company. The study describes various concepts of MAS such as ABC,
JIT, TQM and how the selection of a particular method will help the organization as a
whole. The report even describes the benefits of MAS in the present challenging
environment. It is differentiated with another case study and the outcomes describe the
importance of MAS and its application.
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MAS
Contents
Introduction................................................................................................................... 3
1. Identification of three examples of different types of Management Accounting methods/
techniques that are used by company-A:...........................................................................3
2. Relevancy of MAS in contemporary organizations...........................................................4
i. Evidence from the case study....................................................................................... 4
ii. Comparison and contrast with the second study..............................................................5
2. Relevance of MAS in a competitive uncertain business environment...............................5
4. Specific outcomes...................................................................................................... 6
Conclusion.................................................................................................................... 8
References................................................................................................................... 9
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MAS
Introduction
The organization face threat and competition in the current scenario thereby it has
become vital for the organization to focus on some method that will drive the business
smoothly. Further, the resources must be utilized in an optimal manner that will help in
gaining the best result. It thereby calls for the proper management of the resources and
the selection of the system that is unique and modern (Ronald & David, 2011). The
managers must have access to the overall information that will help in chalking the
strategies. The traditional approach of accounting has failed to provide the desired
results and hence alternative methods came to the forefront. The report discusses the
MAS so that the business information can be used productively and that the managers
do not fall short of information. It enhances the overall performance of the organization
(Uyar, 2010). The major reason for the popularity of the MAS is that it helps the
management in taking a vital decision and leads to a comparative advantage for the
company. The study describes the MAS and the selection of the appropriate tool in
creating a better prospect.
1. Identification of three examples of different types of Management
Accounting methods/ techniques that are used by company-A:
As seen from the case study that the manufacturing company implemented a various
system that comprised of different functions. It is seen from the study that the company
used SPA R/3 that consisted of ABC, TQM, JIT, and BSC. Thereby, a merge of the
different system was used by the company to take advantage of all the techniques.
i. Activity-Based Costing
It can be defined as a mechanism that aims to identify the activities, as well as
processes in an organization thereby assigning a cost to the products in respect of the
actual age of the activity (Surumm, 2017). In this activity, the cost is assigned to the
process hence; more emphasis is paid to the project and activities. When it comes to
the manufacturing industries the payment of salary is treated as an indirect cost going
by the conventional method of accounting, however, in the case of ABC, the payment of
salary is distributed into various processes like grading, procuring, cutting, R&D, sales
and marketing. ABC method helps the company in reducing the actual cost and the
division of cost is done in terms of processes (Watts, Yapa & Dellaportas, 2010).
ii. Balance Scorecard
It can be defined as a management mechanism that helps in ascertaining the
performance where the management can keep a strong note of all the activities
assigned to the management and ensure that the execution is timely (Surumm, 2017).
Further, the adverse results are even forecasted if in case the deadline is not adhered
to. It is a management tool to ascertain the performance whereby the assignment of the
work is done and the KPIs are evaluated to know the productivity. The same scenario
was used by the manufacturing company but the process proved to be of major burden
and hence going by the level of complexity the process was not followed (Watts, Yapa &
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