Management Accounting Report: Benefits of Management Accounting System

This report delves into the realm of management accounting, exploring its core principles and essential requirements for effective decision-making. It examines various accounting systems, including job cost, prime optimization, and inventory management systems, detailing their functionalities and benefits within an organization. The report further evaluates the advantages of implementing a robust management accounting system, specifically in the context of UCK Furniture, highlighting its role in achieving a competitive edge. It critically assesses different accounting reporting systems, such as operating budget, accounts receivable, performance, inventory, manufacturing, and job cost reports, emphasizing their significance in maintaining accurate financial records and facilitating informed managerial decisions. The conclusion synthesizes the key findings, underscoring the importance of management accounting in providing crucial financial and non-financial data to support budgeting and strategic planning. The report also includes references to relevant academic sources.

Management Accounting
PART 1

Covered content
• Introduction
 Management accounting and their essential requirements
 Various accounting system reporting use by an organization
• Evaluating benefits of management accounting system and
their applications
• Critically evaluate accounting reporting systems
• Conclusion
• References

Introduction
Management accounting is such a technique and procedure which
are intended to use with a motive of maintaining financial as
well as non-financial transaction which help them further in
making an effective decision regarding achieving desired goals
and objectives. The main aim of management accounting is to
keeping records of important data and information and
analysing them carefully in order to find out the actual financial
position of company.

Management accounting and their essential
requirements
With the help of management accounting, UCK group can
able to get accurate and crucial information related with
financial and statistical information in order to make an
effective short as well as long-term decision by the
managers.

Job cost system
It is the system which help managers of different
departments to assign or allocate cost for the
manufacturing of specific product or group of products.
Such system is used mostly when the products produced
are different from each other.

Prime optimisation system
Through using such system, the manager can do
mathematical analysis in order to find out the perception
of customers towards the prices charged by company for
their products and services. It will help company in fixing
the suitable prices which will maximising the buying
behaviour of customers and achieve huge profits.

Inventory management system
Through such system, the manages can able to manage
inventory on daily basis in order to prevent the situation
of shortage while manufacturing products. It help
managers to track the inventory and ordered whenever the
stock level comes under the minimum level.

Various accounting system reporting use by
an organisation
Every business organisation is required to adopt reporting
system in order to remember the transactions made earlier
so at the time of evaluation of profitability, the manger
can bale to find out the deviation if any, occurred from
which activities. The accounting managers are held liable
to keep records in systematic manner so that results can
be analysed in more effective and efficient manner.

Operating budget report
There are different department in an organisation which
have their own aim and goals which need to be achieved
in future through performing in right direction. The
managers should required to do proper evaluation of total
expenses and cost which will incurred while
manufacturing quality products.

Accounts receivable report
This type of report provides the list of unpaid customers along
with their all details and used credit memos as their respective
dates. This help company in collecting all pending amounts
from their customers through maintaining records for the
purpose of recovery on particular date.

Performance reports
It is considered as important activity which need to be
undertaken for the purpose of achieving desired
standards. With such report, the manager can able to find
out the deviation if any, through comparing actual
performance with desired.

Inventory and manufacturing reports
It is considered an important technique which help company
in achieving huge profits through meeting customer's
needs and requirements. It is helpful in tracking the level
of stock and evaluate them using different tools and
techniques which includes ABC costing, inventory
turnover ratio etc.