Management Accounting: Systems, Reports, and Analysis Techniques

This presentation provides a comprehensive overview of management accounting, focusing on systems and reports. It introduces management accounting systems, including cost accounting, inventory management, job costing, and price optimization systems, detailing their essential requirements and benefits. The presentation also covers various management accounting reports such as job costing reports, departmental reports, performance reports, and product/service profitability reports. Furthermore, it highlights the benefits of these systems, such as improved cost management, inventory control, and effective job order tracking. The presentation concludes with a critical evaluation of management accounting systems, emphasizing the importance of their proper integration within organizations to facilitate effective decision-making. The references included provide a list of relevant sources for further reading.

Management
Accounting

Table of Contents
 Introduction
 Management Accounting Systems
 Management Accounting Reports
 Benefits of Management Accounting Systems
 Critical Evaluation of Management Accounting Systems
 Conclusion
 References

Introduction
Management accounting is a process through which the various
types of provisions are used by the managers so that they are able
to take appropriate decisions in the future. Through it, the
managers can identify different types of problems and issues and
adopt the right methods through which they can be effectively
resolved. In this presentation, focus will be made on management
accounting systems and management accounting reports.

Management Accounting Systems
Management Accounting refers to the use of different techniques
and methods so that the given financial information is analysed
properly to ensure that the appropriate decisions can be taken by
the managers. In Sainsbury's it can be used so that its management
is able to achieve the goals and objectives which it has set for the
future. There are different types of Management Accounting
Systems. These are explained as follows-
Cost accounting system- It is a system in which there is a an
analysis of various types of costs. Thus the organizations are
required to ensure that they make an appropriate use of it so that
they are able to reduce the costs in an effective manner.

Continued...
Essential requirements-
 In this system, there must be an use of the various types of
techniques so that there is a proper treatment of the various
types of overheads. Thus by making its use the management of
Sainsbury's will be able to ensure that it can ensure the
absorption of overheads.
 This system has to ensure that the various types of techniques
are appropriately used so that the management is able to reduce
the costs. In this way the managers of Sainsbury's will be able to
target profit maximization.

Continued...
Inventory management
systems- In it, there are
use of different methods
and techniques through
which the managers can
facilitate the
management of stock
items in a proper
manner.

Continued...
Essential requirements-
 Techniques like LIFO, FIFO, Weighted Average Cost should be
used in this system to track and monitor the movement of
different types of stock items in an effective manner.
 This system has to help the organizations in ensuring that
techniques are used to reduce the cost of maintaining the
inventory level.

Continued...
Job costing system- For manufacturing organizations, this system
is very useful. It ensures that they are able to maintain a detailed
track record of their various types of job orders in an effective
manner.

Continued...
Essential requirements-
 In it, there must be a use of a proper system to track and
manage the job orders.
 This system has to ensure that the managers are able to apply
techniques for facilitating the reduction in the job costs.

Continued...
Price optimization
system- This
system is helpful
for the firms to use
different models for
helping in
determining the
price.

Continued...
Essential requirements-
 In this system, there must be a use of different types of
statistical and mathematical models for determining the price
effectively and efficiently.
 This system must ensure that forecasting of different types of
changes in price is made more clearly.

Management Accounting Reports
Different types of reports can be used in Management Accounting.
Some of them are explained as follows-
Job costing reports- These reports are useful for the purpose of
ensuring that the different types of job orders are managed properly
and their full summary can be maintained easily.
Departmental reports- The use of these reports is made by the
firms so that they can easily analyse the performance level of their
different departments like Production, Finance, HR, Marketing and
Sales.

Continued...
Performance reports- These reports are very useful for the
organizations because they can help in the assessment of the
overall level of performance in highly effective manner.
Product/Service profitability reports- These reports are helpful
for the firms in ensuring that they maintain a detailed track record
of the different items which they are selling and the various
services which they are providing in the market.

Benefits of Management Accounting Systems
Cost accounting system is useful for the organizations because
through it they are able to identify and manage the costs. Inventory
management system helps the firms in ensuring that details
regarding the stock level are maintained in a proper manner. Job
costing system is helpful for the organizations in managing and
tracking the job orders. Price optimization system helps the
companies in identifying the different types of prices to be set in
the future. Therefore all of them are quite beneficial for Sainsbury's
in ensuring that its management can take appropriate decisions.

Critical Evaluation of Management
Accounting Systems
Management accounting systems are required to be integrated
properly within the functioning of the organizations. The managers
can use them in an effective manner so that decisions are taken in
the right manner by them. By integrating them, the managers of the
firms can ensure that they are able to properly address the criteria
related to the performance by facilitating the desired improvement
in it. Sainsbury's needs to make sure that its management can
integrate all of these systems in a right manner. In this way, the
company will be able to achieve its various types of goals and
objectives.

Conclusion
From the above presentation, it can be concluded that management
accounting can be used for the purpose of facilitation of detailed
analysis and interpretation using the available insights. There are
various systems which are used under it. Its reports can be helpful
for determining the deriving conclusions and recommendations
which can be useful in the future.

References
 Boiral, O., 2016. Accounting for the unaccountable:
Biodiversity reporting and impression management.
Journal of business ethics. 135(4). pp.751-768.
 Chathurangani, H. B. P. and Madhusanka, K. J. S., 2019.
Environmental Management Accounting (EMA) adoption
level among listed manufacturing companies in Sri Lanka:
Institutional theory perspective. Research in Social
Sciences. 2(1). pp.1-12.

Thank You