Management Accounting Report: Analysis of Financial Information

This report delves into the world of management accounting, providing a detailed analysis of its various aspects. It begins with an introduction to the concept, defining management accounting and highlighting its importance in providing crucial financial and non-financial information for decision-making within organizations. The report then explores different management accounting systems (MAS), including cost accounting, price optimization, inventory management, and job costing systems, using Prime Furniture Limited as a case study. A comparison between management accounting (MA) and financial accounting (FA) is presented, followed by a discussion of management accounting reports and the presentation of financial information. The importance of accurate financial statements for informed decision-making is emphasized. Finally, the report examines the integration of MAS and MA reports, concluding that management accounting is crucial for corporate entities to align with internal factors and provide organized financial information.

MANAGEMENT ACCOUNTING
Title

Introduction
Definition of management accounting
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
TABLE OF CONTENT

There are many accounting practices in the financial sector, some of which are
administrative accounting. This can be described as financial statements wherein internal
reports are created by the finance department of multinational corporations to help
managers make informed choices. In the power point demonstration, a company has been
chosen and is constrained to prime furniture. The corporation is headquartered in east
London. The power-point guide contains detailed information on various types of
accounting systems and monitoring methods. Management accounting plays an important
role in the above-mentioned sector in order to provide administrators with key facts
regarding financial and non-financial facets. This knowledge plays a crucial role in
defining multiple judgment options.
INTRODUCTION

The system of identification, appraisal, collecting, analysis, planning, evaluation and
coordination of information used by administration to plan, evaluate and track within an
organization and to verify the proper use and transparency of its capital, as per CIMA.
The preparation of financial statements for non-management bodies, such as creditors,
creditors, shareholders and financial institutions, also includes accounting systems.
Management Accounting, as per IMA, is a practice that entails engaging in business
decision, developing strategy and management procedures, and having financial
appraisal and monitoring expertise to significantly contribute in formulating the policies
of the enterprise.
Definition of management accounting

It can be used as a sort of financial system in which the conceptual and
realistic knowledge of a company is systemically controlled to produce
comprehensive reports. It comprises of multiple methods of reporting,
such as:
Cost accounting system
Price optimization system
Inventory management system
Job costing system
Types of MAS

Cost accounting framework-It is known as a system that is connected to a better way to estimate future
market expenses. Until expenditure is calculated, the cost of the this reporting is not limited, but it also
contributes to the diligent monitoring of operational operations and this method of accounting is
necessary for organizations to reduce the amount of expenditure. The above-chosen firm, Prime
Furniture Limited, is implementing this process map to monitor expenses for the manufacture of
furniture.
Price optimization system- In conjunction with its title, this accounting method is connected to a system
for determining the prices of commodities on the basis of the requirements and the quality of each
product. In compliance with this, data on customer needs shall be taken and the value shall be set. In
order to assess the prices of the products produced, this reporting methodology is adopted to the
company alluded to above. It'll become important due to the right business and customer needs research.
CONTINUE

Inventory management system- In accordance with the particular inventory management mechanism
obtained and exchanged by businesses over a fixed timeframe, this is a form of accounting scheme.
In this way, the stock estimation is carried out in conjunction with different approaches, such as
LIFO, FIFO and cumulative depletion methods. Both of these approaches play an important role for
factories in determining the exact volume of the commodity as needed. Just like with the above
company, Prime furniture uses important information on the stored quantity of raw materials in its
production plant.
Job costing system- It can be seen as a type of accounting rules that is accurately related to the cost
calculation mechanism for each individual product. The goal of this form of accounting is to
optimize total running costs more accurately. For small companies, because of its narrow product
selection, this is not desirable. It is suitable for firms with a broad product spectrum.
CONTINUE

Comparison between MA and FA

MA reports can be deemed to consist of money and anti-monetary
portion organized data. These reported results are commonly used to
take appropriate, appropriate action by corporate executives. Their
manager releases the following records and the above corporation,
Prime furniture limited:
Cost report
Stock report
Accounts receivable report
Management accounting reporting

This is critical for companies that should have roles listed in their financial
information below:
Credible
Up to Date
Accurate
Since management makes crucial decisions based on it is important for
organizations to keep their financial statements accurate. If accounting records is not
accurate, it can be impossible for market organizations to take proactive action that
can lead to different kinds of issues.
Presentation of financial information

Different accounting systems and documentation are used in the MA,
compatible with business systems and techniques. Their separate
branches are linked to the critical history of the Prime furniture
division, as stated above. A system for quality control is being used by
the sales team to boost sales revenue. MA accounts are also related to
the business process, close to accounting systems. In the above-
mentioned company for example, the stock report is connected to the
production line in order to take corrective measures to deliver.
Integration of MAS and MA reports

In order to comply with different types of internal factors,
this can be concluded on account of the above PowerPoint
that management accounting is too important for
corporate entities. The presentation of the power point
enables all forms of units of the stated entity to be
organized with financial accounting and documents.
CONCLUSION

Sunarni, C.W., 2013. Management accounting practices and the role
of management accountant: Evidence from manufacturing
companies throughout Yogyakarta, Indonesia. Review of
Integrative Business and Economics Research, 2(2), pp.616-626.
Bell, J., Hoque, Z. and Arroyo, P., 2012. Management accounting
change and sustainability: an institutional approach. Journal of
Accounting & Organizational Change.
Morales, J. and Lambert, C., 2013. Dirty work and the construction
of identity. An ethnographic study of management accounting
practices. Accounting, Organizations and Society, 38(3), pp.228-
244.
REFERENCES