Management Accounting Report: Methods, Analysis, and Adaptation

This report provides an overview of management accounting, encompassing its essential requirements and differences from financial accounting. It delves into various methods used in management accounting, including budget reports and performance reports, while also exploring appropriate techniques for cost analysis, such as absorption and marginal costing. The report further examines the advantages and disadvantages of different planning tools, like budgets, and how organizations adapt management accounting systems to address monetary issues. A case study involving Airdri is included, illustrating how they tackle financial challenges through benchmarking and key performance indicators. The report concludes by emphasizing the significance of management accounting in maximizing profits and maintaining market stability through financial analysis and strategic planning.

MANAGEMENT
ACCOUNTING

Table of Content
• Introduction
• Management accounting and its essential requirements
• Different methods used for management accounting
• Appropriate techniques of cost analysis
• Advantages and disadvantages of different types of planning tools
• How organisations adapting management accounting systems
• Conclusion
• References

Introduction
The word management defines as planning, organising, staffing,
directing and controlling to achieve objective as to get an organizational
success for future smooth sailing. The word accounting defines a report
or the analysis of Ballpark number and give a big picture of business in
an appropriate manner.

Management accounting and its essential
requirements
The word management defines as planning, organising, staffing,
directing and controlling to achieve objective as to get an
organizational success for future smooth sailing. The word accounting
defines a report or the analysis of Ballpark number and give a big
picture of business in an appropriate manner

Cont...
Management accounting has a vast difference when it compares to
financial accounting as it works more on to operational reports and
financial accounting comprises all different reports of accounting
standard which help in taking vital decision for the company growth.
Essential requirements of different types of management accounting
systems.

Different methods used for management
accounting
Managerial accounting report defines the accounting report of various
aspect related to planning, organising, staffing, directing and
controlling the performance of an individual or a group in a company.
These reports are recorded on continuous basis and work on analysis at
the end of a financial year.

Cont...
Different methods are determine below as:
• Budget Reports
• Account receivable ageing report
• Cost managerial accounting reports
• Performance report

Appropriate techniques of cost analysis
Analysing of cost in a company is necessary part of a success, as it
maintain records of every transaction in an appropriate manner. It
involves different type of analysis to frame the strategies for the growth
of a company. Analysis of cost effective, which help in profit
maximization, analysis of cost benefit which gives strength to the
company and help in maintaining goodwill in the market.

Cont...
Absorption costing:

Cont...
Marginal costing:

Cont...
Income statement by marginal costing method:

Advantages and disadvantages of different
types of planning tools
Planning tools helps the organisation in guiding and taking measures
regarding projects and program. It provides detailed analysis of what
organisation needed to be done. Budget is one of the planning tool that
is prepared in order to deal with unforeseen circumstances.