Exploring Management Accounting Systems and Reporting Methods

This report provides an overview of management accounting, defining it as a system for providing accounting-based information to aid in planning, controlling, evaluating, and decision-making within an organization. It distinguishes between management and financial accounting, highlighting that management accounting is for internal use while financial accounting serves external parties. The report outlines various management accounting systems, including inventory management, price optimization, and cost accounting, emphasizing the importance of up-to-date, reliable, and accurate information. It also explores different management accounting reporting methods such as budget reports, performance reports, and cost managerial accounting reports. The conclusion emphasizes management accounting's focus on forecasting and long-term business decisions, guiding pricing decisions, and assessing the viability of products. The report references several academic sources to support its analysis.

Management Accounting
Task 1

Table of
Content
 Introduction
 Explaining management accounting and its system with
essential requirements
 Explaining various methods in management accounting
reporting
 Conclusion
 References

Introduction
 A provision to devise goals of company through finding,
assessing, evaluating, interpreting along with exchanging
information within the boundaries of a venture is termed to
management accounting.

Explaining
management
accounting
and its system
with essential
requirements
Definition of management accounting
Management accounting could be defined as techniques and tools
which provides information based on accounting for carrying out
practices including planning, controlling, evaluation addition to
decision making.

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 Distinction between management and
financial accounting
Management accounting Financial accounting
 Information produced with
the help of management
accounting is used by
external parties including
lenders and shareholders.
 Information produced
through financial accounting
is used by internal parties
that are managers and
workforce.

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 Management accounting system
 Systematic processes of controlling which are adopted for
influencing organisational people to attain goals are management
accounting systems. Mentioned below are some management
accounting systems with essential requirement at Prime Furniture:
 Inventory management system
 Price Optimisation System
 Cost accounting system

Explaining
various
methods in
management
accounting
reporting
 In the company, information must be up to date, reliable, accurate and
relevant to user because all these are essential in decision making
process. Management accounting reporting could be termed to
organised methods to provide all data for decision making at
workplace. Different methods related to management accounting
reporting in aspect to Prime Furniture are underneath:
 Budget report
 Performance report
 Cost managerial accounting report

Conclusion
 As per information mentioned in presentation, it is concluded
that key focus of management accounting is towards
forecasting as well as longer term business decisions. It
guides users to decide prices of products through providing
all types of information based on market factor, costs addition
to profitability. It further determines lifecycle of existing
commodities and viability of new items.

References
 Dzuranin, A. C., Jones, J. R. and Olvera, R. M., 2018. Infusing data
analytics into the accounting curriculum: A framework and insights
from faculty. Journal of Accounting Education. 43. pp.24-39.
 Guzikova, L. A. and Plotnikova, E. V., 2018. Regional Managerial
Decision-Making Based on Housing Stock Assessment. In Eurasian
Economic Perspectives (pp. 311-321). Springer, Cham.
 Song, I., 2017. Decision Making in Managerial
Accounting. Available at SSRN 3084949.
 Weygandt, J. J. and Et. Al., 2018. Managerial Accounting: Tools for
Business Decision-making. John Wiley & Sons.

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