Management Accounting Report: Analysis for Dairy Crest Business

This report delves into the realm of management accounting, also known as cost or managerial accounting, and its application within a business context, specifically focusing on Dairy Crest. The report begins by outlining the core functions of management accounting systems, including the identification, recording, analysis, and reporting of financial data to support managerial decision-making. It then explores various types of management accounting systems, such as cost accounting, inventory management, job costing, and price optimization, highlighting their benefits. The report further discusses different management accounting reporting techniques, including marginal costing, absorption costing, and break-even point analysis. Finally, it emphasizes the integration of management accounting systems and reporting methods within organizational processes, such as financial accounting, to provide a comprehensive overview of the subject. References to academic sources are also included to support the analysis.

MANAGEMENT
ACCOUNTING

Table of Content
• INTRODUCTION
• Management accounting systems
• Types of management accounting systems
• Benefits of management accounting system to Dairy Crest
• Different types of management accounting reporting techniques
• Integration within the organisational processes
• CONCLUSION
• REFERENCES

INTRODUCTION
Management accounting also known as cost accounting or managerial
accounting. It is a regularised or systematic process of evaluating or
analysing various organisational cost or expenses and different functions
to provide internal reports, accounts and other records to assist managerial
personnel in decision making activities to attain business goals and
objectives.

Management accounting systems
Management accounting system refers to set of activities which includes
activities or functions like identification, recording , analysis and
reporting financial data or information so that organisation's internal
management can use these information or data to take important business
decisions. Activities involved in management accounting system act as a
fundamental framework for decision making process which directly or
indirectly ensures organisation's growth and performance. In managerial
accounting no formal set of standards defined, but there are various
management accounting tools and methods.

Types of management accounting
systems
Following are the major types of management accounting system
adopted by Dairy Crest, are discussed below:
•Cost accounting system
•Inventory management system:
•Job costing system:
•Price optimisation system:

Benefits of management
accounting system
• Cost accounting method is advantageous for Dairy Crest to monitor
and control cost of any of its product to achieve desired profitability
level, increase efficiency and to gain competitive advantage. It also
help to determine the efficiency level of workers.
• Inventory management system is essential for all business
organisation selling variety of products. In Dairy Crest this system is
benefited by optimising inventory cost, minimising wastage or loss,
reducing storage cost. Beside this it also helpful to monitor the
actual movement of inventory during a particular period.

Different types of management
accounting reporting techniques
Reporting is essential element of Management accounting system,
under which lower level managerial personnel's report the outcomes
and other data or information generated through management
accounting process, to top level management.
•Marginal Costing Method
•Absorption Costing Method
•Break Even Point Analysis
•Standard Costing

Integration within the
organisational processes
Management accounting system and reporting methods are
interconnected with different organisational processes directly. Various
organisational processes provide basis for management accounting
system and reporting such as financial accounting process provides a
raw data or information for reporting purpose. For management
accounting and reporting output of financial process is used and
classified as per requirement.

CONCLUSION
From above presentation its has been concluded that management
accounting is vital part of a business organisation. It not only assist in
decision making process but also provide a layer for monitoring and
tracing various financial and other business related issues. Various
types of management accounting assist in operating business activities
and functions smoothly and in efficient manner.

REFERENCES
Hilary, G., and et.al., 2016. The bright side of managerial over-
optimism. Journal of Accounting and Economics. 62(1). pp.46-64.
Holzhacker, M., Krishnan, R. and Mahlendorf, M. D., 2015.
Unraveling the black box of cost behavior: An empirical investigation
of risk drivers, managerial resource procurement, and cost
elasticity. The Accounting Review. 90(6). pp.2305-2335.