Management Accounting Systems and Reports: Prime Furniture Analysis

This report provides an overview of management accounting systems and reports, focusing on their application to Prime Furniture, a rising East London-based firm. It discusses essential requirements for management accounting systems, including cost accounting, inventory management, job costing, and price optimization, highlighting how these systems can help Prime Furniture achieve its mission and targets. The report also covers various management accounting reports, such as budget reports, cost accounting reports, and accounts receivable aging reports, emphasizing their role in evaluating and understanding crucial data for improved efficiency and effectiveness. Furthermore, it outlines the benefits of management accounting systems, including cost reduction and improved inventory management, and evaluates how these systems and reports can be leveraged to achieve desired levels of efficiency and productivity within the organization. The analysis is supported by references to relevant academic literature.

Management Accounting
PART 1

Table of Content
Introduction
Management accounting system
and essential requirements
Management accounting reports
Benefits of MA systems
Evaluation of MA systems and
reports

Introduction
 Management accounting pertains to the application of different
accounting laws, tools, and methods to guarantee that
administrators make the best decisions possible in order to increase
the entire productivity and quality in the business while avoiding
difficulties and problems.
 Prime Furniture, a rising East London-based firm, is going to
establish an education course for its new starters, according to this
article. In this presentation consist of various management
accounting systems and reports that helps to understand the concept
in effective manner.

Management Accounting Systems
and Their Essential Requirements
 It employs a variety of accounting tools and strategies to help
the business accomplish its mission and targets while also
allow companies to make the best decisions possible. In
management accounting, a variety of systems are employed.
The following is an overview of such structures:

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 Cost accounting system: The system would require
administrators to ensure that effective to utilize the
appropriate measures in order to regulate the organization's
market expenses and overhead expenses. Prime Furniture's
management will be able to use this system effectively in
order to meet their mission and targets.

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 Inventory Management System: It is in this document that the
management ensures that they are capable of managing the
firm's inventory levels. It is necessary to guarantee that the firm's
stock is appropriately handled in the framework of Prime
Furniture.
 Job costing system: It is typically utilized in businesses that
engage in the production of goods. As a result, Prime Furniture's
supervisors may utilize this technology to measure their action
theory and guarantee that they are completed on time.

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 Price Optimization system: It must be utilized by businesses
in order for them to be successful in establishing a prices of
the goods and activities, allowing them to gain a strong
position. Prime Furniture's administration can actually be able
to achieve larger earnings in this manner.

Management Accounting Reports
 Firms apply such analyses to evaluate and understand
important data more quickly and successfully. In this
approach, Prime Furniture's manager has to make sure that it
can evaluate and understand data in order to improve overall
efficiency and effectiveness while avoiding problems and
concerns.
 The following are the many sorts of management accounting
reports:

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Budget Report
Cost accounting report
Accounts receivable agin report

Benefits of MA systems
 They provide many kinds of benefits to businesses.
Organizations can use a cost accounting system to ensure that
expenses are kept low. It also guarantees that outgoings are
reduced.
 The Inventory Management System monitors stock levels and
guarantees that they are appropriately handled. Inventory
monitoring is also made feasible. The Task Costing System
guarantees that job contracts are maintained correctly.

Evaluation of MA systems and
Reports
 Businesses can leverage management accounting systems in
order to achieve the desired degree of efficiency and
productivity.
 The management of Prime Furnishings must apply such
methods in the appropriate situation.
 The company's management can work towards making the
best judgments possible.

REFERENCES
 Cooper, D. J., Ezzamel, M. and Qu, S. Q., 2017. Popularizing a
management accounting idea: The case of the balanced
scorecard. Contemporary Accounting Research. 34(2). pp.991-
1025.
 Granlund, M. and Lukka, K., 2017. Investigating highly
established research paradigms: Reviving contextuality in
contingency theory based management accounting
research. Critical Perspectives on Accounting. 45. pp.63-80.
 Hall, M., 2016. Realising the richness of psychology theory in
contingency-based management accounting
research. Management Accounting Research. 31. pp.63-74.
 Hopper, T. and Bui, B., 2016. Has management accounting
research been critical?. Management Accounting Research. 31.
pp.10-30.