Management Accounting Report: Evaluation of Prime Furniture's System

This report provides a comprehensive overview of management accounting, focusing on its application within Prime Furniture Limited. It begins by defining management accounting and its role in organizational decision-making, emphasizing the importance of financial accounting information for internal management. The report then delves into various management accounting systems, including cost accounting, job costing, inventory management, and price optimization, detailing their functions and benefits. It also explores the methods used for management accounting reporting, highlighting how different reports are created. The conclusion reiterates the significance of management accounting for profitability and future growth, emphasizing the role of these systems in forecasting activities and facilitating performance comparisons. References to relevant academic sources are also included to support the analysis and findings.

Management Accounting

TABLE OF CONTENTS
 Introduction
 Management accounting
 Management accounting systems
 Methods for management accounting reporting
 Advantages
 Conclusion
 References

INTRODUCTION
 Management accounting is the process whereby the managers of the company
are communicated with the financial accounting information based on which
they take the operational decisions of the company.
 PPT shall be providing the deeper insights in the management accounting
system of the Prime Furniture Limited.
 It shall also be reflecting the various management accounting systems that are
used by the company to evaluate and measure the performance of the
management.
 It shall also be disclosing the significance of the management accounting
systems and how they are applied in the company for the fulfilment of the
organizational objectives.

1. Management Accounting
 Management accounting is the internal management function as performed by
the managers of the company in order to meet the organizational goals and
objectives of the business.
 It is process which involves decision-making regarding the future operations
based on the details as provided by the current financial statements of the
company.
 The management accountants refer to the business transactions in order to
report about the future forecasting and take necessary short term and long term
decisions in the company.
 It helps in achieving the fundamental aim of the company which is to
maximize the profits and generate growth prospects for the Prime Furniture
Limited.

CONTD..
Types of Management accounting systems

CONTD..
Cost accounting system
Ascertain the accurate cost of the product.
Profitability analysis
Cost controlling

CONTD..
Job costing system
 Allocation of resources
Decision of whether to continue or discard
Cost of specific job

CONTD..
Inventory management system
Track the inventory levels
Avoid over and under stocking
Economic order quantity

CONTD..
Price optimization system
Determining the prices
Price optimization strategies
Influence the customers

2. Methods used for Management accounting reporting
The formation of various types of reports is done to conduct the process of
management accounting reporting.

3. Benefits of management accounting system
Prime furniture can get desired level of outcome by undertaking management
accounting systems and techniques. Moreover, there are several benefits which in
turn associated with MA systems such as:

CONCLUSION
 It can be summarized from the above project that management accounting is
very essential in the business in order to generate profitability and future
growth prospects.
 The various management accounting systems are used to forecast the level of
activities that are to be undertaken in the future.
 The reporting by the management facilitates the comparison of the actual data
with that of the budgeted and accordingly helps in planning to rectify the
deviations.

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.
Ameen, A. M., Ahmed, M. F. and Abd Hafez, M. A., 2018. The Impact of
Management Accounting and How It Can Be Implemented into the
Organizational Culture. Dutch Journal of Finance and Management. 2(1). p.02.
Maas, K., Schaltegger, S. and Crutzen, N., 2016. Integrating corporate
sustainability assessment, management accounting, control, and
reporting. Journal of Cleaner Production. 136. pp.237-248.
Hiebl, M. R., 2018. Management accounting as a political resource for enabling
embedded agency. Management Accounting Research. 38. pp.22-38.