Management Accounting Systems & Reporting: An In-depth Analysis

This report provides a comprehensive overview of management accounting and its systems, highlighting the importance of management accounting reporting. It defines management accounting as the presentation of accounting information used by managers for strategic planning and management tasks, incorporating components like budgets and performance reports. The report details various types of management accounting systems, including cost accounting and inventory management, and discusses their advantages, such as cost comparison and performance valuation. It also addresses the factors influencing management accounting reporting, emphasizing comparability, verifiability, understandability, and timeliness. Furthermore, the report explores methods used for management accounting reporting, including cost reports, budget reports, and investment appraisal reports, and outlines the benefits of these systems, such as effective price setting and improved cash flow. The application of management accounting systems in organizations is discussed, focusing on analysis of options, price setting, inventory level determination, and decision-making at all levels, concluding that management accounting and reporting are integral for cost reduction, better control, and informed decision-making. The document also includes an income statement analysis using both marginal and absorption costing approaches, along with a reconciliation statement and calculations of per-unit costs and stock valuations.

Management
Accounting

Table of Contents
• Introduction
• Definition of Management accounting
• Definition of Management Accounting System (MAS)
• Different types of MAS
• Advantages of MAS
• Definition of Management Accounting Reporting
• Methods used for Management accounting reporting
• Benefits of Management Accounting System
• Application of Management Accounting System in an
Organisation
• Management Accounting system and reporting integrated
• Conclusion
• References

Introduction
• Brief about management accounting and
requirement of different MAS
• Methods Used for Management accounting
reporting
• MAS benefits and application in an
organisation
• MAS and reporting are integrated within
organisational process

Definition of Management accounting
• Presentation of accounting Information
• Used by the managers
• Consists of Methods for strategic planning
• Facilitates in the management Task
• Budgets, Performance reports are some
components

Definition of Management
Accounting Systems
• Used by Internal Management
• Providing of information through reports
• Facilitates in decision making
• Recording and Analysis of Data

Different Types of management
accounting System
• Cost Accounting System
• Inventory Management System
• Job and Process Costing
• Price Optimisation

Advantages of Management
accounting system
• Comparison of the cost incurred
• Valuation of performance
• The quantity that must be ordered
• Minimal cost of the stock and inventories
• Better allocation of funds

Definition of Management accounting
reporting
Factors of Management
Accounting Reporting Comparability
Verifiability
Understandability
Timelinees

Methods Used for Management
accounting reporting
• Cost Report
• Budget Reports
• Divisional, Departmental Reports
• Investment Appraisal Reports

Benefits of Management Accounting System
• Effective setting of the price
• Better management of the production of
products sold
• Improvement in the cash flow of the company
• Facilitates in decision making
• Reduction in overall cost

Application of Management
accounting system in Organisation
• Analysis of the various options available
• Setting of the price
• Determining the Inventory level
• Decision making at all the level of organisation
• Proper allocation of funds

Management accounting system and reporting
integrated
• Comparison of the results
• Preparation of the reports
• Keeping of reports and analysis of the same
• Reduction of cost and increase in productivity
• Formulation of budget

Conclusion
• Management accounting and system are
integral part of organisation
• It is effective in reduction of cost
• Better control and coordination
• Reporting and System are important tools
• Facilitates in decision making
• MAS is important for measuring performance

References
• Kasravi, A., Ghasemi, M. and Zadeh, N.N., 2017.
The Effect of Management Accounting, Financial
Performance and Organizational Performance in
Tafresh University. Journal of Internet Banking
and Commerce, 22(3), pp.1-10.
• Richardson, A.J., 2017. The Relationship between
Management and Financial Accounting as
Professions and Technologies of Practice. The
Role of the Management Accountant: Local
Variations and Global Influences.