Management Accounting Systems and Reporting

UNIT 5

TABLE OF CONTENT
 Introduction
 Management accounting systems and its requirement
 Methods of reporting in Management accounting
 Benefits and application of management accounting systems
 management accounting system and management accounting is
integrated within the organizational process
 CONCLUSION
 References

INTRODUCTION
Management accounting is a process of collection of useful data &
converting it into information that can be communicated easily to
managers for scaling up business. Management accountants at workplace
identify, analyze and interpret data into interactive logical content related
to cost or budget of products & services. This data is collected through
various performance reports, maintenance of track records etc. regulating
profits or losses in business environment. The report below show financial
analysis of Prime Furniture based on link between different departments.

Management accounting systems and its requirement
Management accounting – This is an accounting tool that help in creation
of financial reports of organization by proper analysis of business costs &
activities. Junior accountant at Prime furniture uses this form of
accounting process to check management reports and communicate them
successfully to internal stakeholder of chosen firm.
Management accounting systems- These systems are used by
management accountants to examine overall company processes
financially. The superior managers of Prime Furniture follow these
systems to collect useful information & convert it into appropriate
information for making future plans.