Management Accounting Report: Prime Furniture's Financial Strategy

This management accounting report provides a comprehensive overview of Prime Furniture's financial activities, emphasizing the integration of management accounting systems, microeconomic techniques, and planning tools. It assesses the benefits of cost accounting, price optimization, and inventory management systems, highlighting their role in presenting financial information and improving organizational procedures. The report delves into microeconomic techniques like cost-volume-profit analysis, absorption costing, and marginal costing, and explores the use of budgets for planning and control, including capital and operating budgets. It compares Prime Furniture to other organizations, addressing challenges such as cash flow and overspending, and suggests management tools like benchmarking and KPIs for financial governance. Ultimately, the report concludes that effective managerial accounting practices are crucial for making informed decisions, managing costs, and driving sustainable success, with recommendations for budget reports, inventory reports, and managerial accounting documents to enhance financial performance.

Management Accounting

 Introduction
 Introduction of MA
 Presenting financial information
 Benefits of system
 Integration of system and reports in organizational procedure
 Micro economic techniques
 Using budgets for planning and control
 Use of different planning tools
 Comparison of organisation to solve financial problem
 Solving financial problem to lead sustainable success
 Conclusion
Table of Content

Management accounting is defining as the combination of reports and
accounts in which mention all the cost and price of business
activities. To understand the concept of the report selected
organisation Prime furniture which is a growing East London based
organisation. The company planning about the start training course
for the new trainee so for this prepares report in which mention all
the necessary information.
INTRODUCTION

Management accounting: Accounting for management is the inner task
of every organization, which plays a crucial role in every sector. It
seems to get essential business-related knowledge, and increase
profits. The corporation's executives prepares various kinds of reports
that provide complete details and offer suggestions about what needs
to be done in order to efficiently operate a business. Management
accounting basically aims to understand, supervise and analyze the
complex data used only to make the much more suitable business
organization decisions.
Introduction to MA

Cost Accounting system: As per the name given to this system
specifies the costs of the various goods and services offered by the
companies.
Price optimization system: It explains the prices that help achieve the
specific goals including such income value creation.
Job costing system: Job costing is a method for allocating and
collecting the production costs of a single product device.
Inventory management system: It is an accounting method that helps
to better control the stocks and manage all the operational activities
in systematic manner
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The management accounting reports are the result of the organization's
results reflecting the expectations of both internally and externally
administrators. Such accountability plans are published using
various accounting practices which help to define the organization's
productivity condition. Most of these reports are used to schedule,
control, assess success and make the right decisions that will be
profitable for retailers and society.
Presenting Financial Information

Budget Report: It can be described as some type of report involving the
provision of actual and standard revenue, expense data.
Cost managerial Report: All types of business entities are preparing this
report to understand the price of the institution, and to enhance the
profitability.
Inventory cost report: This is the most requested document written by the
institution's president.
Accounts Receivable report: This is a kind of report that relates to
presenting details from different debtors on the total recoverable sum.
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 Cost accounting system: : Calculating the expense of production and
obtaining estimate of existing month revenue is helpful.
 Price optimization system: : It is helpful to maximize company's
product costs that determine however much budget is required by
resolving costs to raise income
 Inventory management system: This management system is
important for keeping monitor of stock and availability for products
and services as per requirement
Benefits of MA Systems

Management accounting system and reports interconnected in
organizational procedure such as stock management system are
useful for monitoring stocks that contains guidance via stock reports
being utilized to maintain stock management and market control
systems beneficial in knowing pricing via budget reports or work
reports that are being used to control the rates of the professional.
Integration of MA systems and reports in organizational
procedure

 Cost: In order to make a purchase, cost is the cash payment a
corporation has expended to manufacture it.
 Cost volume profit: The Cost-Volume-Profit (CVP) analysis is
utilized to evaluate how expense and production adjustments impact
the net revenue and net profits of a business
 Absorption costing: This is another costing method that is used to
develop up a full production costs along with actual expenses and the
percentage of overhead expenses that describe institution profit levels.
Micro Economic Techniques

 Marginal costing: This is a costing method that includes variable
and fixed costs which are measured in units and time to assess the
cost can be computed and in amounts. Variable compensation
related to those costs that may alter after such a transition in
production where they stay constant as operating expenses to
measure income. This approach can be used by any company to
achieve the same income by specifying fixed costs and variable
costs.
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 Budget: The budget relates to organizational process financial
management for a given time frame. It consists of scheduled sales
volumes and earnings, commodity amounts, costs and expenses,
assets, liabilities and flow of cash etc.
 Budgetary Control: Budgetary control pertains to how much the
supervisors use expenditures in a specific accounting period to
regulate as well as manage costs and operational environments
Using budgets for planning and
control