Management Accounting Report: Techniques, Benefits, and Integration

This report provides an overview of management accounting, encompassing various systems and their applications within an organizational context. It begins by defining management accounting and its role in analyzing business costs and operations to prepare internal financial reports, records, and accounts for managerial decision-making. The report then delves into specific management accounting systems, including inventory management and cost accounting, with a focus on job costing systems. It further examines different methods used in management accounting reporting, such as performance reports, and discusses the benefits of these systems within an organizational setting. The report highlights the integration of management accounting within organizational processes, emphasizing its importance for informed decision-making. It concludes by summarizing the critical role of management accounting in enhancing organizational efficiency and financial management.

MANAGEMENT ACCOUNTING

Table of content
■ Introduction
■ Main Body
■ Conclusion
■ References

INTRODUCTION
■ Management accounting, also called managerial
accounting or cost 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.
■ Present report will be providing the understanding about
the management accounting concepts.
■ It will cover different management accounting systems
and management accounting reporting methods.

Management Accounting and requirements if different types of
management accounting systems
■ It is also known as managerial accounting and is
defined as process involving analysis of costs of
business and operations for preparing the internal
financial reports, records and the accounts for
helping the management of company in decision
making for achieving the business objectives more
efficiently.

Inventory Management Systems
■ It is system of management accounting
that is defined as combination of
different technology, procedures &
processes for effective maintenance and
to monitor the inventory movement in
and out of the organization.
■ Prime furniture use inventory
management in keeping track record of
all the furniture that are manufactured
within the organization, raw materials
and inventory in work in progress.

Cost accounting systems
■ Cost accounting is used by Prime furniture for effectively analyzing the
business cost structures.
■ It assess all the costs associated with the manufacturing of products, and
other costs of business. Cost accounting plays very important role in
analyzing and estimating the costs of products. There are two methods of
cost accounting systems that are
■ Directing costing
■ Standard costing

Job Costing System
■ Job Costing is a management accounting
system where all the cost associated with the
job are compiled for the work order and not
the complete process.
■ Job costing is essential for prime furniture as
is helps it to keep record cost of all the jobs
associated with manufacturing the furniture.

Different methods used in management
accounting reporting
■Performance reports are prepared by the organization for ensuring that the
business is performing as per the desired target levels.
■ It is prepared by prime furniture for evaluating its performance of operation
during given period of time. Performance reports play an important role in
decision making process.
■ They provide the areas where company has to make improvements and
focusing on areas that will improve profitability.

Benefits of management accounting systems and application within organizational
context
■ Inventory management helps Prime Furniture in maintaining the
required inventory levels.
■ Its application in the production system has helped the
management to reduce its carrying costs.
■ Just in time approach makes the inventor available on demand.

Evaluating how management accounting systems and
management accounting is integrated within
organizational process
■ Concept of management accounting is critical for the prime
furniture in remaining conversant with the decision making process
of various departments. Managerial accounting provides companies
with quantitative and qualitative information on operational and
financial performance.
■ managerial accounting system encompasses the processes
companies install to control and plan operations and support
effective decision-making.
■ Application of management accounting concepts will help in
translating the it into efficient practice of financial accounting for
the enterprise.

CONCLUSION
■ Management accounting is a critical part of business
organization. Every organization has to deal with the concepts
and techniques of management accounting.
■ Business organization are using the different management
accounting systems for increasing their efficiency.
■ It assist organization in managing their funds and finances
effectively.

REFERENCES
■ Otley, D., 2016. The contingency theory of management accounting and control: 1980–
2014. Management accounting research. 31.pp.45-62.
■ Maas, K., Schaltegger, S. and Crutzen, N., 2016. Integrating corporate sustainability
assessment, management accounting, control, and reporting. Journal of Cleaner
Production. 136.pp.237-248.
■ Weetman, P., 2019. Financial and management accounting. Pearson UK.