HNBS 305 Management Accounting Project Report on UCK Furniture

This project report delves into the crucial role of management accounting within business organizations, specifically focusing on UCK Furniture. It begins with an introduction to management accounting and explores various systems, including cost accounting, inventory management, job costing, and price optimization. The report details different accounting reporting systems, such as performance reports, budget reports, job cost reports, accounts receivable reports, and inventory management reports, highlighting their significance. Furthermore, it evaluates the benefits of utilizing these management accounting systems, emphasizing how they can enhance UCK Furniture's operations and profitability. The report then critically assesses the accounting systems and reporting techniques, emphasizing the importance of continuous evaluation. Finally, it concludes by summarizing the impact of management accounting in determining an organization's overall productivity, supported by references to relevant literature.

Management Accounting
(Project 1)

Covered content
• Introduction
• Various management accounting systems and its essential
requirements
• Different accounting reporting systems
• Benefits of accounting system
• Evaluation of reporting techniques
• Conclusion
• References

Introduction
Management accounting is utmost important part of every
business organisation. This will be crucial for the purpose of
managing their financial transactions which is done in their
everyday transactions. The overall project is delivering
positive outcomes by analyse key aspects those are
associated with the company.

Various management accounting systems
Management accounting mainly known as a simple
procedure of measuring, examine, analysing and
communicating financial data in order to attain “UCK
Furniture” objectives. The other name of this systems is cost
accounting because maximum of accounting transactions are
done and recorded in finance term.

Cost accounting system
It is known as a costing system which is applied by the
corporation to make an estimation of total cost of their
products for stock valuation, profitability evaluation and cost
control management.

Inventory management
This system is used for the purpose of controlling and
overlooking the ordering and storage of elements which
most of the corporation applies in their production of
products and services.

Job costing system
It is refers to the well organise system of allocating
production costs to an individual products or batch of a
product. It is mostly associated if the products processed are
relatively difference from one another.

Price optimisation system
This particular system of application of numerical
evaluation to a corporation is use to determine total
customer perception about a product price which is being set
by an organisation for their furniture.

Various methods which is applied for
management accounting reporting
In order to increase their efficiency, managers always use to
analyse their accounting data and record in more systematic
manner. Reporting is a detail information which consists of
crucial data about various aspects of management
requirements.

Performance report
It is the responsibilities of accountant to apply budget to
make comparison among actual sales and expenses to the
budgeted amounts. The point of difference will be computed
in order to evaluate shaping of new budgets and include
every data those are crucial for the betterment of an
organisation.

Budget report
It is crucial for the departments to work according to their set
aims and objectives. This will help in control extra costs and
expenditure which is making huge impacts on the productivity of
the departments. Budgets are determine through introducing
budgets of prior accounting year and adjusting them to make
better future.

Job Cost reports
It is vital for the company to manage their costs those are done by
the company during the production of their products and services.
It is done through taking every raw material overhead costs,
direct labor and extra costs into consideration those are directly
associated with the production process.

Accounts receivable report
Such kind of reports is mainly prepared by accounts managers of
UCK furniture to make proper record of unpaid list of customers
and credit memos. It is known as primary methods which is been
used by UCK furniture to collect total invoices that are been
delinquent for payment. It is helpful as perfect standard to
forecast the financial position of the company.

Inventory management report
This reports are mostly related with the dominant management of
stock position of the company. There are various stock
controlling techniques available with the manager to manage
their opening and closing records. Some of them are EOQ,
inventory turnover ratio and ABC costing. These are utmost
effective in managing their inventories in more effective manner.

Evaluate benefits of using management
accounting systems and their applications
Management accounting is having various advantages. Some of
them are often coincide with the capability for UCK furniture to
enhance operations and overall profitability. This can leads to
create competitive advantages by formulating total cost of the
company. Some useful advantages of using these systems in
context of UCK furniture is discussed in the below mention table:

Accounting system
Advantages
Job costing system It would be helpful for UCK furniture in forecasting of every
types of cost throughout the production process.
It will helps to prevent duplication of efforts as similar work
will be reflected.
It is mostly helpful in analysing of quality of work done.
Price optimisation
system
The mentioned company can make proper estimation of the
attitude of customer those are searching of variation in the
price.
It would be helpful in increasing of operating gains and best
suitable price.
By the help of this accounting system segmentation among
various customers can be done more easily.
Cost accounting system The company can easily measure their efficiency in processes
and then assists in developing improvement with proper
utilisation of this particular system.
By the help of this accounting system one can fix and reduce
prices of their products.
Inventory management
system
They can make valuable improvement in order to increase
accuracy of their stock orders.
By this overall efficiency can be increase and save maximum
time.

Critical evaluation of accounting system
and reporting
From the above mentioned accounting reporting company can
make a well organise report that would highlight overall
performance of an organisation. This is the primary
responsibilities of managers to make continuous valuation about
their stock as well as other aspects those are affecting the
productivity of UCK furniture. For this purpose, reporting tools
are needs to be analyse in well planned manner. Such as:

Continue...
Accounting reports and evaluation
Budgeting reports: This combination among organisational processes those are related
to the furniture company and other budget reports are done in effective manner. This will
assists in targeting outcomes and purpose in more better way.
Accounts receivable aging report: The proper interpretation among activities and
company can leads to make better reports that can help in attaining timely outcomes. This
will produce on time payment of accounts receivable and creation of proper collection
regulations.
Job cost report: Such kind of activities UCK furnitures would be directed towards the
attainable cost aims and reports which can make easy to take appropriate pricing strategies.
This will help in reduction of overall cost of products and services those are being done
during an accounting period of time.
Performance reports: These reports are mostly helpful in creating a well organise plan
for the betterment of an organization. The manager can make valuable plan for future
manufacturing and cost maximisation that leads to reduction in cost and increase high
growth chances.
Inventory and production report: This reports deliver better management of stock
level and production cost by estimating the forecasted level of buying order to be taken into
consideration.

CONCLUSION
From the above project reports, it has been concluded that
management accounting can help in determining overall
productivity of an organisation. This is said to be more crucial
aspects which will help in controlling there business operations
on regular basis. For this purpose, accounting systems and
reporting are helpful to generate better understanding of there
overall performances.

Reference
Simkin, M. G., Norman, C. S. and Rose, J. M., 2014. Core
concepts of accounting information systems. John Wiley
& Sons.
Smith, M., 2017. Research methods in accounting. Sage.
Stadler, W. ed., 2013. Multicriteria Optimization in
Engineering and in the Sciences (Vol. 37). Springer
Science & Business Media.
Stair, R. and Reynolds, G., 2013. Principles of information
systems. Cengage Learning.

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