Management Accounting Systems and Reports for Business Success

This presentation provides a detailed overview of management accounting, focusing on its significance for business success, particularly for a firm like Prime Furniture Limited. It defines management accounting, differentiates it from financial accounting, and explores various management accounting systems, including price optimization, cost accounting, inventory management, and job costing systems. The presentation also analyzes management accounting reports, such as stock, cost, and accounts receivable reports, emphasizing the importance of accurate and up-to-date financial information. Furthermore, it highlights the integration of management accounting systems and reports, concluding that effective utilization of these tools is crucial for enhancing profitability and driving business growth. The presentation references several academic sources to support its analysis.

MANAGEMENT ACCOUNTING
Title

Introduction
Definition of management accounting
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
TABLE OF CONTENT

 Management accounting is one of the most crucial as well as critical aspect as it
helps a firm to accomplish its long term objectives and goals that are very important
for the company to sustain in the market for a longer period of time as compared to
the other competitors that are prevailing in the similar industry. In this owe point
presentation a firm that is Prime Furniture Limited is taken that has it’s headquarter
located in the UK and is operating since a pretty long time in the industry. This
power point presentation covers various aspects that are related with management
accounting and its related factors which impact the firm in both direct as well as
indirect way.
INTRODUCTION

The system of identification, appraisal, collecting, analysis, planning, evaluation and
coordination of information used by administration to plan, evaluate and track within an
organization and to verify the proper use and transparency of its capital, as per CIMA.
The preparation of financial statements for non-management bodies, such as creditors,
creditors, shareholders and financial institutions, also includes accounting systems.
Management Accounting, as per IMA, is a practice that entails engaging in business
decision, developing strategy and management procedures, and having financial
appraisal and monitoring expertise to significantly contribute in formulating the policies
of the enterprise.
Definition of management accounting

It is a system that is used in various ways as it is very beneficial in accomplishing
the tasks and objectives of the firm that has been laid down at the starting of the
company. There are different types of systems prevailing in the market and the most
important one are described below-
Price optimization system
Cost accounting system
Inventory management system
Job costing system
Types of Management Accounting System

 Price optimization system- It is a system that helps in calculating the level of price
at different levels so that it can be analyzed in a fairer way so as to improve the
condition of the firm according to the requirement of its managers and it also helps
in allocation of funds in an effective and efficient manner.
 Cost accounting system- This system is also known as costing system as it helps in
evaluating various costs including the cost of inventories of the company that is one
of the most important aspect for a firm and thus due to this it possess a lot of
importance.
CONTINUE

 Inventory management system- It is a system in which inventories of a firm is
managed in order to reduce its wastage so that it can be used in a useful way that
could help the firm as well as the environment in a positive way.
 Job costing system- As the name suggests in this type of system allocation of
resources are done according to the needs, requirements, and demands of particular
activity or task so as to do it in a proper and precise manner that could help the
company in the long run.
CONTINUE

Comparison between Management and
financial accounting
Basis Management accounting Financial accounting
Essentiality It is an accounting system
that is very essential in
order to be successful in
the industry in which the
firm is operating as it is
very important.
It is a system of accounting
that is not that much
essential but is has to be
done by companies
which are related with it.
Information and outcome It includes information that
is related with normal
transactions that are not
related with finance. Its
outcome is the report
that is of internal in
nature.
Information in this type of
accounting system is
related with finance and
the outcome that is
generated is financial
statement which is
organised in a precise

Management accounting reports are the one that is used to analyse and interpret various
aspects that directly or indirectly affects the working of the firm and thus all it is
monitored in a very detailed manner so that appropriate decisions can be taken
accordingly so that it can add to the value of the firm in the long run. The company
that is Prime Furniture Limited management has evaluated the following reports-
 Stock report
 Cost report
 Accounts receivable report
Management accounting reporting

It is very essential for the company as it is very important due to the value its possess
in the current scenario and various types of roles are listed by the company that are
described below-
 Up to date
 Credible
 Accurate
Presentation of financial information

Both management accounting system and management accounting reports are inter
related with each other and helps to increase the profitability of the firm if both are
used together in a correct and precise manner as it is related with business process
and its related systems.
Integration of Management accounting system and Management accounting reports

From the above it can be concluded that management accounting is one of the most
important aspect for each and every firm especially Prime Furniture Limited and the
firm has done a commendable job in this aspect to which proved very beneficial as
well as useful in the long run as it increased profits of the company and
subsequently growth.
CONCLUSION