Management Accounting Presentation: Prime Furniture, Business Analysis

This PowerPoint presentation provides a comprehensive overview of management accounting (MA) principles and their practical application within Prime Furniture, a company based in East London. The presentation begins with an introduction to MA, defining its role in gathering financial and non-monetary data for accounting reports, which facilitate better governance. It then delves into various Management Accounting Systems (MAS), including cost accounting, stock management, price optimization, and job costing systems, explaining their functionalities and benefits. The presentation further outlines different MA reporting methods, such as stock reports, performance reports, and budget reports, and evaluates how these systems and reports are integrated into Prime Furniture's business processes. The conclusion emphasizes the critical role of MA in enhancing internal management and decision-making within companies, highlighting the importance of MAS and the various MA reports discussed throughout the presentation. References to relevant academic sources are also provided to support the analysis.

Introduction
Management accounting (MA) is a method of accounting relating to the
structured process of gathering a firm's financial non-monetary data for the
preparation of accounting documents. Such reports allow companies to take
remedial action for better governance. This power point presentation is
focused on a company headquartered in East London which is Prime
furniture. The presentation includes details about the various MAS and the
importance of these systems for businesses.

TABLE OF CONTENT
• Introduction
• Explanation of MA and different types of MAS
• Benefits of different MAS
• Various methods of MA reporting
• Evaluation of MAS and MA reports which are integrated
with process of companies
• Conclusion

Explanation of MA and different types of MAS
• Cost accounting system- It is an integrated system that tracks the expenses incurred in different
functions in depth. In the Prime limited company, their accountants use this system for
management of overall expenses
• Stock management system-The stock of businesses is carefully managed in this MA management
system. The production manager of above Prime limited company, use this accounting system to
enable better usage of stored materials.
• Price optimisation system- The management accounting system relates to the process of pricing of
goods and services in conjunction with data collected on feedback from customers on different
prices. In the above company their marketing department to set prices of furniture accordance of
this accounting system.
• Job costing system-It has been identified as an accounting system that is connected with the
assignment of manufacturing costs for a specific production unit. In this respect of above company
this allows them to determine efficiently the costs of each operation.

Benefits of different MAS
• Cost accounting system- It is linked with monitoring and reducing the expense of different kinds of
activities. As in the above-mentioned company, they use this system to control the cost of production.
• Inventory management system- As mentioned above, this accounting system is related to material control
by monitoring quantities. In the above company, they use this accounting system for managing
quantitative aspect of stored materials.
• Price optimisation system- This accounting system is connected to maintaining product rates at an
efficient level. They use this system in the above company to set a price of their wide variety of products.
• Job costing system- This is consistent with determining the cost, profit and loss performance of each
work. In the above company, their managers analyse cost of each aspect by help of this accounting
system.

Various methods of MA reporting
• Stock report- This is a type of report that is prepared with an aim of managing level of stored inventories
in warehouses. In the aspect of above Prime limited company, their managers gather key information by
help of this report in order to manage overall level of stock
• Performance report-It is a type of report which is prepared and used by managers in order to know actual
level of performance of different range of aspects. In regards to above Prime furniture limited company,
their managers promote their employees on higher designation in accordance of information under this
report.
• Budget report- It can be defined as a type of report in which information about budgeted income and
revenues is included. Like in the above company, their finance managers gather key information from
this report for taking crucial decisions.

Evaluation of MAS and MA reports which are
integrated with process of companies
There are different types of accounting systems such as cost accounting system, price optimisation system
etc. These all are linked with business process because each of them has a relation with department of
companies. Like in the above company, their different accounting systems and reports are linked with their
business process.

Conclusion
On the basis of above power point presentation, this can be concluded that MA is too crucial for
companies in order to better internal management. The PPT concludes about role of MAS for
companies and its integration with chosen organization’s process. As well as different MA reports are
also mentioned such as budget report, performance report etc.

References
Otley, D. and Emmanuel, K.M.C., 2013. Readings in
accounting for management control. Springer.
Hiebl, M. R., 2014. Upper echelons theory in management
accounting and control research. Journal of Management
Control. 24(3). pp.223-240.
Groot, T. and Selto, F .H., 2013. Advanced management
accounting (pp. 339-378). London: Pearson.