Analysis of Management Accounting Report for Prime Furniture Limited

This report provides an overview of a management accounting report, focusing on the internal practices of Prime Furniture Limited. The report begins with an introduction to management accounting systems, highlighting the differences between management accounting and financial accounting. It then explores various management accounting systems, including cost accounting, price optimization, and inventory control, and their benefits. The report also discusses the presentation of financial information, emphasizing the importance of accurate and reliable data. Furthermore, it examines the integration of management accounting systems and reports within the organization, illustrating how different departments utilize accounting data for decision-making. The conclusion summarizes the critical role of management accounting in businesses and its contribution to various accounting processes. References to relevant academic sources are also included.

MANAGEMEN
T
ACCOUNTING
TASK 1.

TABLE OF CONTENT
 Introduction
 Management accounting systems
 Difference between MA and FA
 Management accounting reports
 Benefits of management accounting systems
 Presentation of financial information
 Integration of MAS and MA reports
 Conclusion
 References

INTRODUCTION
The method of internal administrators to compile, organize, review,
evaluate important financial and non financial information to make
decisions for day-to-day activities within the organization is
recognized as management accounting. To better understand the
importance of MA prime furniture as various MA components are
addressed. The power point presentation provides specific
information on different forms of MA systems and reporting
procedures and their integration within organisation process.

MANAGEMENT
ACCOUNTING SYSTEMS
MA has been among the accountability practices for any industry in
the present time as each company wants transparent record about
their business activities. This can be defined with the support of
various MA system which enables management to collect and
organise data is generated for a respective time period and make
important decision for increasing profit margin. some of MA
system are elaborated below:

Difference between ma and faBasis Management
accounting
Financial accounting
Essential It's not even necessary for
companies to enforce the acc
ounting.
To enforce this accounting it is
necessary to conduct some business comp
any using.
Outcome It produces internal
Management Policy papers.
This helps in presenting important
financial statements according to the
criteria
Information Data used in MA is
technically as well as non-
financially
On the other side, this accounting process
contains only financial information
Format Information is created in any
way without any blueprint
and can be easily evaluated
by the manager.
Applying a standard format is critical for
the transparency of data.

Management accounting
reporting
MA reports comprise of systemic recording of monetary and non-
monetary component of a business in appropriate manner. These
reported information's are widely used by senior executives to take
proper, immediate action to improve performance. Their manager
draws up the following records in the business unit Prime Furniture
Limited listed above:
Cost accounting report
Inventory management report
Accounts receivable report

Benefits of management
accounting systems
 Cost accounting method-It is concerned with the aspect of the
calculation of overall costs for specific activities by determining the
appropriate variance measurements
 Price optimisation program- This is essential for companies to set
the average quality in accordance with current market trends so
that profitability can be increased.
 Inventory control system- This accounting system calculates
precisely the total volume of stock available in company that can
fulfil the customer demand.

Presentation of financial
information
This is relevant for business firm to have the proper and
reliable financial records and must consider following aspects such as:
 Reliable
 Latest
 Free from any sort of error
This is important that companies retain accurate financial records such
that even if management take key decision making. If monetary data is
inaccurate, businesses can fail to take extra steps that may lead to
different kinds of problems.

Integration of MAS and MA
reports
Frequently financial records and processes adhere to business policies
and MA practices. As mentioned above, their separate parts in
Prime Ltd company are related to the critical background of the
organization. The distribution department uses a market
optimisation system to maximize profits. Compared to payment
schemes, MA reports also apply to the corporate processes. For eg,
in the above-mentioned organization the inventory report is related
to the production department to take necessary action in the
manufacturing phase.

CONCLUSION
It can be seen in the above power point presentation that MA is too
critical for businesses to retain different facets internally. The
power point demonstration helps the numerous divisions to comply
with accounting processes and records.

REFERENCES
Ward, K., 2012. Strategic management accounting.
Routledge.
Wickramasinghe, D. and Alawattage, C.,
2012. Management accounting change: approaches
and perspectives. Routledge

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