Management Accounting: Techniques, Tools, and Systems

UNIT 5: MANAGEMENT
ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION 2
Management accounting (MA) and its importance 2
Different types of management accounting techniques 2
Presenting different planning tools 3
Pros and cons of planning tools 3
Presenting different management accounting systems to responds financial issues 3
Evaluate how management accounting planning tools help Sainsbury to maintain sustainable
success 4
Comparing the ways in which management accounting is applied through examples 4
Absorption and Marginal costing 5
CONCLUSION 5
REFERENCES 6

INTRODUCTION
The present report is based on the topic management accounting that means it is the type of
practice that is used to measuring and interpreting financial information to achieve the
organization goals. It will discuss about the Management accounting and its importance with
Different types of management accounting techniques. It will also evaluate about the Presenting
different planning tools along with the Pros and cons of planning tools. It will also present the
different management accounting systems to responds financial issues. Further it will also
include the ways in which management accounting is applied through examples and it also
Evaluate how management accounting planning tools help Sainsbury to maintain sustainable
success. Lastly it will also discuss about the Absorption and Marginal costing
Management accounting (MA) and its importance
Management accounting is a practice of determine, measuring and interpreting entire
financial information to managers in order to ensure that it align with organization’s goals
(Alhatabat, 2020). With the help of MA, manager of Sainsbury make better decision and
communicate the same with others. So it can be stated that through this, accountants determine
the financial performance of a company. Its importance is as mentioned below:
● Through MA, accountant collect and analyze all financial information and analyze the
same through defined graphs and table to make correct decisions.
● It monitor and measure the performance of a company by using different tools such as
budgetary control, job costing and price optimization.
● MA set target for each division in advance and determine the target are attained. Thus, it
make sure that all resources are completely utilized in order to improve efficiency
(Importance of Management Accounting, 2021).