Analysis of Management Accounting Systems and Reports: Finance

This report delves into the realm of management accounting, focusing on its significance for business entities. It begins with an introduction to management accounting and its role in providing internal reports for decision-making, using Prime Furniture Limited as a case study. The report explores various management accounting systems, including cost accounting, price optimization, inventory management, and job costing, highlighting the differences between management and financial accounting. It then examines management accounting reports such as cost, stock, and accounts receivable reports, and their benefits. The presentation emphasizes the importance of accurate and up-to-date financial information, the integration of management accounting systems and reports with business processes, and concludes by underscoring the critical role of management accounting in managing internal business aspects. References to relevant literature are also included.

MANAGEMENT
ACCOUNTING
TASK 1.

TABLE OF CONTENT
 Introduction
 Management accounting systems
 Difference between MA and FA
 Management accounting reports
 Benefits of management accounting systems
 Presentation of financial information
 Integration of MAS and MA reports
 Conclusion
 References

INTRODUCTION
There are several accounting activities in the financial sector,
one of which is management accounting. This can be
characterized as an accounting method in which internal reports
are produced by accounting division of business entities in
order to help managers for better decision making. In the power
point presentation a company has been chosen that is prime
furniture limited. The company is located in London east. The
power point presentation covers detailed information regards to
different types of accounting systems and methods of reporting.

MANAGEMENT ACCOUNTING
SYSTEMS
It can be interpreted as a kind of accounting process by
which quantitative and qualitative knowledge of a company
is systemically handled in order to produce internal reports.
It consists different types of accounting systems such as:
 Cost accounting system
 Price optimization system
 Inventory management system
 Job costing system

DIFFERENCE BETWEEN MA
AND FA
Basis Management
accounting
Financial accounting
Essential This accounting is not
essential for companies to
apply.
While this accounting is
essential to apply for
companies.
Outcome Under it, internal reports are
produced.
On the other hand in this
financial statements are
prepared.
Information In this financial and non
financial information is
included.
While in this only financial
information is included.
Format In this, reports are prepared
without any format.
There is particular format
which is needed to be apply.

MANAGEMENT ACCOUNTING
REPORTING
It can be understood that MA reports consist of systematic
information on monetary and anti-monetary segments. Such
reported results is commonly used by corporate managers to
take appropriate correct action in due time. Their accountant
designs the following reports in the above mentioned business
unit Prime furniture limited:
 Cost report
 Stock report
 Accounts receivable report

BENEFITS OF MANAGEMENT
ACCOUNTING SYSTEMS
 Cost accounting system- It is associated with the dimension of
managing total costs for various operations through the
assessment of correct variance scales
 Price optimization system- This is beneficial for firms to fix
the product price in accordance with the current industry trend
 Inventory management system- This accounting system
accurately measure the worth of the allocated stock
 Job costing system- It is helpful to businesses to quantify the
cost of increasing product produced.

PRESENTATION OF
FINANCIAL INFORMATION
This is essential for companies that their financial information
should have below mentioned features:
 Reliable
 Up to date
 Accurate

CONTINUE
It is essential for companies to keep their financial
information accurate because on the basis of it managers
take crucial decisions. If financial information will not
accurate than this can become difficult for business entities
to take corrective steps which may lead to different types of
issues.

INTEGRATION OF MAS AND
MA REPORTS
There are numerous accounting systems and reports in the MA
that are compatible with business processes and procedures. As
mentioned above, their different branches are connected to the
critical context of the department in the Prime furniture. The
sales department uses a Price optimization system to boost sales
revenues. MA reports are also related to the business process,
comparable to accounting systems. In the above-mentioned
company, for example, the inventory report is connected with
the production department to take manufacturing corrective
steps.

CONCLUSION
On the behalf of above power point presentation this can be
concluded that management accounting is too crucial for
business entities in order to manage various kinds of
internal aspects. The power point presentation enables that
different types of departments of chosen company are
aligned with accounting systems and reports.

REFERENCES
Ward, K., 2012. Strategic management accounting. Routledge.
Wickramasinghe, D. and Alawattage, C., 2012. Management
accounting change: approaches and perspectives.
Routledge