Management Accounting Systems

This presentation provides an overview of management accounting systems and their importance in decision-making. It covers different types of management accounting systems, including cost accounting systems, inventory management systems, job costing systems, and price-optimization systems. The presentation also highlights the benefits of these systems to Crest Dairy.

TITLE OF PRESENTATION
UNIT NAME: Management Accounting
YOUR NAME:
ID NUMBER:
ASSESSOR:
DATE of Presentation

TABLE OF CONTENTS
• Slide 3 Introduction: MANAGEMENT ACCOUNTING
• Slide 4 MANAGEMENT ACCOUNTING SYSTEMS
• Slide 5 TYPES OF MANAGEMENT ACCOUNTING SYSTEMS
• Slide 6 COST ACCOUNTING SYSTEMS
• Slide 7 Inventory Management Systems
• Slide 8 Job Costing Systems
• Slide 9 Price-optimization Systems
• Slide 10 Benefits of Management Accounting Systems to
Crest Dairy

Introduction: MANAGEMENT
ACCOUNTING
Managerial accounting is the process of analyzing
business costs and operations to prepare internal
financial report, records, and account to aid managers’
decision making process in achieving business goals.
 In other words, it is the act of making sense of
financial and costing data and translating that data
into useful information for management and officers
within an organization.

MANAGEMENT ACCOUNTING
SYSTEMS
Management accounting system is a process collecting
financial data from business operations such as sales data,
stocks in raw materials cost, wages rate and how the
information is converted to analysis the report.
The main objective of a management accounting system is
to provide information to managers so they can make
sound decisions

TYPES OF MANAGEMENT
ACCOUNTING SYSTEMS
Cost-accounting systems
Inventory management systems
Job-costing systems
Price-optimizing systems

COST ACCOUNTING SYSTEMS
A costing system is designed to monitor the costs incurred by a
business.
The system is comprised of a set of forms, processes, controls, and
reports that are designed to aggregate and report to management
about revenues, costs, and profitability.

Inventory Management
Systems
Inventory management system is the process of
efficiently overseeing the constant flow of units into
and out of an existing inventory.
This process usually involves controlling the transfer
in of units in order to prevent the inventory from
becoming too high, or dwindling to levels that could
put the operation of the company into jeopardy.

Job Costing Systems
A job costing system involves the process of
accumulating information about the costs
associated with a specific production or job.
It is the responsibility of the human
resource to cost and describe a certain job
in an organisation before it is advertised.

Price-optimization Systems
The Price optimizing systems are methods
or programs that calculate how demand
varies at different price levels.
 Then combine that data with information
on costs and inventory levels to recommend
prices that will improve profits.

Benefits of Management
Accounting Systems to Crest Dairy
Elimination of Wastes, Losses and Inefficiencies
Cost Reduction
Cost Control
Identify the reasons for Profit or loss

Management Accounting
Reporting Techniques
Management accounting reports provides
information which is very essential in
managing resources effectively and efficiently
for the sustainability of an organisation.
Book keeping and taking clear records is key
to management accounting.

Types of management
Accounting Reporting Methods
Marginal Costing Method
Absorption Costing Method
Break-even point Analysis
Standard Costing (Variance Analysis)

MARGINAL Costing Method
Marginal costing method is a
management accounting technique
which only takes into account direct
cost variable in determining cost of a
product or a service at that particular
time.

Absorption Costing Method
Absorption costing method is a management
accounting technique which takes into account
both direct cost (variable) and fixed cost in
determining cost of a product or a service.
The absorption production cost of an item is the
sum of its direct materials cost, direct labour
cost, direct expenses and indirect (fixed) cost.

Integration of management accounting
systems and management accounting
reporting within organisational processes.
Integrated management accounting system and
reporting method is a application that standardizes
procedures for recording transactions and
disseminating financial information.
It interconnects the reporting activities of different
functional areas of business such as point of sale,
stores.

References
King, I.
"New set of accounting principles can help drive sust
ainable success"
. ft.com. Retrieved 28 January 2015.
Clinton, B.D.; Van der Merwe, Anton (2016).
"Management Accounting - Approaches, Techniques,
and Management Processes". Cost Management.
New York: Thomas Reuters RIA Group