Analysis of Management Accounting Systems, Reporting, and Benefits

This report delves into the core concepts of management accounting, emphasizing its significance for organizational sustainability. It details various management accounting systems, including job costing, inventory management, and cost accounting, highlighting their roles in tracking expenses, managing resources, and influencing customer behavior. The report also explores different reporting methods, such as budgeting, accounts receivable, and performance reports, and their integration with organizational processes. It showcases the benefits of each system, such as improved cost control, enhanced decision-making, and better inventory management. The analysis uses UCK Furniture as a case study, illustrating how these systems and reports contribute to achieving organizational targets, improving employee performance, and facilitating strategic planning. The conclusion underscores the advantages of implementing these accounting systems for businesses like UCK Furniture, emphasizing coordination among departments and informed decision-making.

Management Accounting
PART 1

Covered content
• Introduction
• Various types of management accounting system
• Different types of reporting
• Benefits of using management accounting system
• Critical evaluation of reporting
• Conclusion
• References

Introduction
Management Accounting is important concept which is necessary
to implement by every organisation to attain sustainability in their
operations. It is the process involves preparation of different
accounts which provides timely statistical information to managers
to make short term decisions. In the present report explain about,
Essential requirements of different types of management
accounting systems, different methods of management accounting
reporting.

Various types of accounting system
It is broad concept which includes the provision of cost
accounting also. It includes the preparation of different
accounts which records the information regarding the
functions of different departments. Different accounting
systems are named as Job costing, inventory, cost and
managerial accounting.

Difference between Management and
Financial accounting
Management Accounting
Financial Accounting
Different accounts and reports and
prepared for internal parties
Profit and loss account is prepared
for external parties
The concept of management
accounting is future oriented helps
in forecasting of future actions
These accounts are prepared on the
basis of historical data
Measures both financial and
operational performance of
organisation
Helps in measurement of financial
data

Job cost system
This system helps in assigning manufacturing cost to each
and every product which is produce by UCK Furniture. It
contributes in tracking the expenses. It is important system
which helps in identification of the profitability which is
associated with production of such product. Procedure of
Job costing is defined below:

Prime optimisation system
This system is used the accounting officer of UCK Furniture
to control the prices of different resources. It helps in fixing
the price of different products on single time. It helps in
determination of the fluctuation in demand due to change in
the level of price. This system is used for influencing the
behaviour of customers and improves the sales of their
products.

Inventory management system
This system is used by the manager of UCK Furniture
regarding supervision and management of stock and non
capitalised assets. It helps in effective and efficient flow of
resources in different departments. Two essential function of
this system is defined below:

Different methods used for management
accounting reporting
Accounting officer of UCK Furniture prepares different
kind of reports. Such reports are called as budgeting,
accounts receivable, Job cost, Inventory and manufacturing
reports etc. Important information is collected to forecast
about future actions for making critical decisions.

Budgeting reports
These reports are used to set out the plans. Such plans and
budgets are further used by the manager regarding
evaluation of the performance of department and controlling
of different costs. Budget includes the information regarding
actual expenditure which is incurred by organisation during
the given period of time.

Accounts receivable report
This report provides the opportunity to the manager of UCK
Furniture regarding management of their debtors. It helps in
identification of the amount which is due from different parties.
If organisation is not able to collect their outstanding amount
within the given credit period then it helps in making their credit
policies more strict. It helps in maintenance of effective liquidity
in organisation to meet their day to day requirements.

Order information report
This reports helps in identification of the trend which is
present business. Preparation of this report helps in
integration of the functions with market trends. It provides
the opportunity regarding lowering the cost of placing
orders and improve their profitability.