Management Accounting Report: Prime Furniture - Analysis and Insights

This report provides an analysis of the management accounting system for Prime Furniture, a UK-based organization. It examines the essential requirements of management accounting, including the importance of management principles, relevance, and credibility. The report details different methods of accounting reports, such as job costing and performance reports. It also explores the benefits and applications of management accounting systems, focusing on cost accounting, price optimization, and inventory management. The report concludes that effective management accounting is crucial for planning and control, offering insights for businesses seeking to improve their financial and operational performance. The report leverages references to support the analysis and provide additional context to the subject.

Management
Accounting
Task 1

Table of Content
 Introduction
 Understanding management accounting system and their essential requirement
 Explaining different methods of accounting report
 Benefits and application of management accounting systems
 Conclusion
 References

Introduction
 Management accounting refers to the methods that measure internal process and
system and evaluate the overall management of the organisation.
 In this report, the company is Prime Furniture, which is UK based organisation
that is planning to start training course for interns.

Understanding management accounting
system and their essential requirement
 Management accounting- It refers to the process of identifying the managerial
accounting and financial accounts that main objective is to provide best
information for the user that will help the manager to take essential decision.
 Management principles- These are important for every organisation to follow and
adhere with them in order to enhance efficiency
 Relevance
 Credibility

Continue…
 Management accounting system- This works for the improvement in the
internal process of management and develop the effectiveness in the
performance
 Cost-accounting system
 Inventory-management
 Price optimising system

Explaining different methods of
accounting report
 The reports in organisation contains important part as it include essential
records that has different transaction like operational cost, product profitability
and regional sales (Dombrovskaya, 2020).
 Job costing reports
 Performance report

Benefits and application of management
accounting systems
Management
accounting system
Uses Application
Cost accounting
system
This helps in
determining the
estimated cost and
leads to proper control
of expenses.
Prime furniture need
this system to
implement to reduce
the expenses of
activities and functions.
Price optimisation This provide control
over the price that is
being established by
organisation and
effectively evaluate for
profit maximization.
Prime Furniture is
applying this to
regulate whole process
of pricing strategies to
increase the profit for
the management.
Inventory-management
system
This is useful in
monitoring and
managing the process
of raw material that
converted to finished
Its application in Prime
Furniture will oversee
the whole process of
inventory in the
organisation.

Conclusion
 From the above report it is concluded that Management accounting refers to
those tools which assist management to do better planning and control. This is
important in many organisation to use effective way of management
accounting methods.

References
 Ilona, D., 2020. Behavioural intention to use accounting application: perceived
ease of use as mediating variable. Journal of Management Info. 7(4). pp.211-218.
 Majeed, R. and Fayaz, M., 2020. Financial performance analysis of Bhel:
Evidence from accounting performance metrics & DU-PONT model. ZENITH
International Journal of Multidisciplinary Research, 10(1), pp.1-10.