Management Accounting Report: Analysis of Primark's Financial Systems

This report provides an overview of management accounting, focusing on its application within the fast-fashion retailer, Primark. It begins with an introduction to management accounting and its role in managerial decision-making, emphasizing its internal focus. The report then delves into various management accounting systems employed by Primark, including price optimization, job costing, and inventory management. Each system is explained, highlighting its function and importance. Furthermore, the report examines management accounting reports, such as performance and budget reports, detailing their significance in providing information for stakeholders and aiding in resource allocation. The integration of management accounting systems and reports is also discussed, emphasizing their combined impact on business performance and profitability. The report concludes by summarizing the key concepts and benefits of management accounting, reinforcing its critical role in achieving organizational objectives, supported by relevant references to academic sources.

Management Accounting

Table of Contents
• Introduction
• Management accounting systems
• Management accounting reports
• Conclusion
• References

Introduction
Management accounting is about managing accounting
information for the businesses for managers decision making. It
helps managers for company's decision making for its better
performance. The company which is includes for this report is
Primark. It is the fast fashion retailer company. It was founded
in 1969, headquarter situated in UK.

Management accounting systems
Management Accounting
The term management accounting provides a financial information and resources to the managers in a decision
making system. It is only used for the internal function. To study the business costs and prepare the financial
reports and records of decision making process in achieving business goals.

Continued….
Price Optimisation System: This system used to take control
of the prices of resources, it helps to decide the price of the
multiple products at a particular time.

Continued…
Job Costing System: This type of system is to delegate the
manufacturing cost to each and every individual product. Job
costing accounting consists of receiving enquiry, estimate price
of job, order receiving, cost recording etc. It means the
customer is concerned about the quality of the product and time
to complete the order, if the customer is assured about the price
then the order will be placed.

Continued…
Inventory Management System: This type of accounting system is involved with supervision and
management of stock of the enterprise. It contribute the use of desktop software, barcodes
scanners, printers, mobile devices etc. In Primark Ltd.
Cost Accounting System: This system helps the organisation to estimate the value of the product
for profitability analysis and cost control. A firm must know which product are profitable and
which ones are not.

Management accounting reports
Management accounting reporting: It is the
process which includes producing reports for the
company's shareholders. It helps managers for
providing information which helps company's for
its various activities for investing which helps for
higher profitability for the businesses.

Continued…
Performance reporting: Performance reporting is about
collecting information for the company which helps for better
utilisation for its resources which provides the information for
Primark's stakeholders for investing for the company which
helps it for higher profitability.

Continued….
Budget reports: Company's makes budget for
managing its performance for expected
performance which helps Primark's for managing
its activities.

Benefits of management
accounting systems
The management accounting system helps company's for managing their costs for earning
higher profits for its activities which gives higher profitability for the businesses.

Integration of MA systems and MA reports
The management accounting system & management accounting reports are
integrated for the company's. These are the systems which helps Primark's
company's for their better performance for managing company's activities which
helps for higher profitability for the businesses (van Erp, Roozen and Vosselman,
2019).