Management Accounting: Adapting Systems to Financial Problems- Unit 5

This report evaluates how organizations adapt their management accounting systems to respond to financial problems, focusing on Mark and Spencer and NHS. It discusses various management accounting systems, including cost accounting, inventory management, price optimization, and job costing. The report highlights how these systems assist in cost control, resource management, and decision-making, ultimately improving productivity and efficiency. It emphasizes the importance of adapting these systems to address financial challenges and achieve business objectives.

Unit5- Management Accounting
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Contents
P5 Evaluate how organizations are adapting management accounting systems to respond to financial
problems......................................................................................................................................................3
References...................................................................................................................................................5
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P5 Evaluate how organizations are adapting management accounting systems to respond to
financial problems.
Management accounting is the system that tends to elaborate on varied strategies that can assist
the company in better handling and management of the operations so that the desired objectives
can be attained within a proper time frame. With respect to the operations of the Mark and
Spencer and NHS, there are various types of management accounting system that assist them in
varied sets of decisions that can lead to the command on the aspects related to the cost and
resource handling. Some of the types of the management accounting system that are
implemented by the administration of the Mark and Spencer and NHS include:
Cost accounting system: The authorities of both the companies (Mark and Spencer and NHS)
adopt the cost accounting system in the operations that assist them in having proper command on
the aspects of the cost so that proper command can be attained by the administration of the
companies. Further, it will also assist in the management to take suitable decisions for the further
activities in accordance with the budget. As such it is advisable that the expert personnel of both
the companies must elaborate a proper focus on the outcomes obtained from the cost accounting
system (Allison, 2014).
Inventory management system: The authorities of both the companies that are Mark and
Spencer and NHS make proper focus and observation on the proper and suitable management of
the inventory so as to serve the demand as per the requirements of the environment. Further
adoption of the concerned type of the management system ensures a great support to the
authorities in drastically improving the level of productivity thereby increasing the level of
efficiency (Mutiganda, 2013).
Price optimizing System: The price optimizing system has provided the authorities of Mark and
Spencer and NHS with the analysis of the facts and aspects in the mathematical terms with a
view to obtain the response of the customers in relation to the varied prices of the products and
services so that the company is able to attain the objectives that are linked to the success of the
business such as increment in the level of profit. Further, the price optimizing system assists in
the better process of the decision making that can lead to a better success.
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Job costing system: The company concerns generally face the problem of the high cost that can
act as a barrier to the smooth conduct of the operations. As such the job costing system provides
a great assistance in assigning the cost to the individual product. This will ensure that the
management of the companies to have a proper track of all the activities and resources so that
they can be utilized in the best possible manner. Further provided it will also assist in the proper
and suitable maintain of the books of accounts that is reliable to the operations and activities of
the company.
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References
 Allison, P.D., 2014. Event history and survival analysis: Regression for longitudinal event data
(Vol. 46). SAGE publications.
 Mutiganda, J.C., 2013. Budgetary governance and accountability in public sector organisations:
An institutional and critical realism approach. Critical Perspectives on Accounting, 24(7-8),
pp.518-531.
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