Management Accounting Report for Prime Furniture - BTEC

This report focuses on management accounting, providing insights into its principles, systems, and applications. It begins by defining management accounting and differentiating it from financial accounting. The report then explores various management accounting systems, including cost accounting and inventory management systems. Furthermore, it discusses different types of management accounting reports. The report references books and journals to support its findings, offering a comprehensive understanding of the subject. This assignment aims to assist students in understanding the use of financial data to aid planning decisions, and the monitoring and control of finance within organizations.

Management Accounting Report
Prime Furniture

Table of Contents
• Introduction
• Management Accounting
• Difference between management accounting and financial accounting
• Different types of management accounting systems
• Different types of management accounting reports
• Conclusion
• References

Introduction
• Management accounting is that branch of accounting which is primarily concerned
with providing information to the internal stakeholder of an organisation.
• This presentation aims at understanding various concepts related to management
accounting and exploring various management accounting systems in context of
Prime Furniture, a London- based company.

Management Accounting
• Management accounting is a branch of accounting which takes into factor
information of both financial and non-financial nature. Users of management
accounting are internal stakeholders of the company such as management.
• Importance of management accounting within organisation
• Origin and principles of management accounting

Difference between management
Accounting and financial accounting
Basis
Management
Accounting Financial
Accounting
Underlying
explanation It involves
planning,
organising,
identifying,
managing and
controlling
company data to
transform into
financial nature.
This pertains to
information of
only financial
nature.
User Internal
stakeholder Both internal and
external
stakeholders
Facilitates Appropriate
business
decision-making
Decision-making
of investors, tax
planning of
business, etc.

Different types of Management
Accounting Systems
• Cost-accounting system
• Inventory management system
• Price-optimising system

Different types of Management
Accounting Report
• Cost-accounting report
• Budget reports
• Inventory management report
• Performance report

Conclusion
Above presentation illustrates that management accounting derives its origin from
financial accounting and covers information of both financial and non-financial nature
to help management makes informed decision. Further, it was elucidated that there are
different types of management accounting systems like cost accounting system,
inventory management systems, etc. Relevant reports are generated for it.

References
Books and Journals
Ghasemi, R. and et. al., 2016. The mediating effect of management accounting system
on the relationship between competition and managerial performance.
International Journal of Accounting and Information Management.
Kostyukova, E. I. and et. al., 2018. Improvement cost management system for
management accounting. Research Journal of Pharmaceutical, Biological and
Chemical Sciences. 9(2). pp.775-779.