Analysis of Management Accounting Systems at Prime Furnitures

This report provides an analysis of management accounting practices within Prime Furnitures, a medium-sized manufacturing brand. It explores the role of management accounting in planning, organizing, directing, decision-making, and controlling activities. The report highlights different types of management accounting systems, including cost accounting, stock management, and price optimization, and discusses the benefits of these systems in enhancing organizational efficiency and supporting decision-making. It also emphasizes the integration of management accounting within the organizational process at Prime Furnitures, focusing on continuous improvement, cost management, and quality management. The report concludes that management accounting is crucial for small and medium enterprises in delivering quantitative and qualitative information to improve operational performance.

Managerial accounting
PART-A

Introduction
Management accounting is the branch of accounting that is performed
by management team that is for performing of functions related
with planning, organising, directing, decision making and
controlling activities. Present report is based on a medium sized
manufacturing brand that is prime furnitures

Management accounting and the essential
requirements of different types of management
accounting systems.
Management accounting is the provision of financial & non financial decision
making information to managers. In management accounting managers are using
the provision of accounting information for the purpose of informing themselves
better so that there can be proper decisions to be made. It helps them in managing
better and performing control functions.

Different types of management accounting
systems.
 Cost accounting system
 Stock management
 Price optimisation

Different methods used for management
accounting reporting
Budget reports
 Cost managerial accounting reports
 Account receivable ageing reports
 Cost managerial accounting reports

Benefits of management accounting systems and
their application within an organisational
context
 It helps in enhancing the efficiency of other functional department
because financial resources are very limited with every organisation
that has to be allocated as per basic requirements is that overall
effectiveness can be maximised.
 it is very important for prime furniture for the purpose of arriving at
important decisions in the course of overall functioning of business.

Management accounting system and
management accounting is integrated within the
organisational process
Management accounting offers organisation with qualitative and quantitative
information to enhance their financial and operational performance. In Prime
furniture this function is used for installing a proper plan and control of operations
for the purpose of supporting the decision making process. In prime furniture this
function is integrated in the organisation because of following reasons:

Recommendations...
 Continuous improvement
 Cost management
 Quality management

Conclusion
It is concluded from the above made analysis that in case of small and medium enterprises
management accounting is a system that is very helpful for the purpose of delivering
quantitative and qualitative information that can assist in the course if having better
operational performance.

References
Keevy, M., 2020. Core subjects in accounting academic programmes: Development of
pervasive skills. South African Journal of Accounting Research, 34(2), pp.140-
160.
Kumarasiri, J., 2017. Stakeholder pressure on carbon emissions: strategies and the use
of management accounting. Australasian Journal of Environmental
Management, 24(4), pp.339-354.

Thank You