Management Accounting Systems and Reports

Management
Accounting

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1: Management accounting systems.....................................................................................................3
P2: Management accounting reports......................................................................................................5
M1: Benefits of Management accounting systems..................................................................................5
D1: Critical evaluation of Management accounting systems and Management accounting reports.......6
TASK 2..........................................................................................................................................................6
P3: Calculation of different types of costs using various techniques.......................................................6
M2: Accurate application of the techniques............................................................................................7
D2: Producing of financial reports...........................................................................................................7
TASK 3..........................................................................................................................................................8
P4: Advantages and Disadvantages of Planning Tools.............................................................................8
M3: Analysis of planning tools.................................................................................................................9
TASK 4........................................................................................................................................................10
P5: Comparison of organizations...........................................................................................................10
M4: Analysis of response to financial problems....................................................................................11
D3: Evaluation of planning tools............................................................................................................11
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12

INTRODUCTION
Management Accounting refers to a process of making the use of the available financial
data, facts and information in such a manner so that it can be helpful in conducting a thorough
analysis and interpretation so that the conclusions and recommendations can be derived
(Battaglia and et.al., 2020). This leads towards taking of the appropriate decisions in the future
within the organization helping in ensuring an enhancement in the overall level of profitability in
a proper manner. Thus, this makes it quite useful from the point of view of the various managers.
This report is based on MSD Lighting Ltd. It is a company which manufactures street lights and
other products and provides them to the customers who require it. In this report, a detailed
discussion will be made on Demonstration of understanding of Management accounting systems,
Application of a range of its techniques, Explanation of the use of planning tools. Additionally, a
specific analysis will be made on Comparison of the ways in which the organizations can make
the use of Management Accounting to be able to respond to financial problems as a part of this
assignment.
TASK 1
P1: Management accounting systems
It refers to the use of various types of methods and techniques in which the managers can
make sure that the use of the available information is made so that the appropriate decisions are
made and the overall financial goals and objectives within an organization can be attained in a
proper manner (Bauer and Hospodka, 2020). MSD Lighting Ltd. can make its use so that the use
of the financial information is made quite appropriately. There is various Management
accounting systems which can be used within the organizations. An explanation of these systems
is provided in the following manner-
Cost accounting system- It is a system in which an accurate assessment of the various
types of costs is made within the companies (Beasley and et.al., 2021). Therefore, the firms are
required to ensure that through making its use they are able to determine and segregate the costs
effectively and efficiently in a right manner. For an organization like MSD Lighting Ltd. it is
quite important that the use of this particular system can be made so that it is able to make sure
that the attainment of the short-term, medium-term and long-term goals and objectives can be
done.
Essential requirements-
 In this system, there should be a thorough assessment of the various types of costs in the
organizations. Therefore, in the organization this should be ensured.

 In this system, a system for segregation of costs and apportionment of overheads should
be used so that the organization is able to make sure that it can effectively and efficiently
manage out a wide variety of needs and requirements in a proper manner.
Inventory management system- It is a system in which the assessment of the stock level
within the organizations should be made thoroughly and thus this will be quite helpful in
ensuring that the management of stock items should be made in a proper manner (Blazek,
Durana and Valaskova, 2020). For an organization like MSD Lighting Ltd. it is a useful
system so that it is able to manage out its wide variety of needs and requirements in an
appropriate manner.
Essential requirements-
 In this system, the assessment of the inventory level should be made through the use of
various methods like LIFO, FIFO and Weighted Average Cost etc.
 This system should be helpful in accurate assessment of the inventory costs and ensuring
that a reduction in the inventory costs can be made so that the profitability level can be
enhanced.
Job costing system- It is a system through which the assessment of a wide variety of job
orders can be made and thus the job costs can be determined quite accurately
(Bruggeman, 2020). Therefore, it is important for the organizations that they are able to
make the use of this particular system so that they can assess the job costs appropriately
and are able to bring a reduction in these job costs in a proper manner.
Essential requirements-
 In this system, a thorough assessment of the various types of job orders can be made so
that a better track of these job orders can be kept within the organizations.
 This system should make sure that by listing out a wide variety of job orders the
organizations are able to attain a higher-level of efficiency and effectiveness in the
management of these hob orders in a proper manner.
Price optimization system- It is a system through which the determination of the
different types of prices can be made within the organizations (Cengiz, Oduncuoglu and
Koseoglu, 2020). Therefore, it is quite important for the organizations that they are able
to make sure that they use this system to forecast the trends in prices and are able to set
an appropriate price which will help them in maximizing their profits.
Essential requirements-
 In this system, a thorough assessment of the various types of price levels should be made
so that the use of the appropriate methods and techniques is made for setting the right
prices within the organizations.
 In this system the organizations should make sure that they are able to set those prices
which help them in targeting a higher-level of profitability in a proper manner.