Management Accounting: System, Reporting, Advantages and Integration

This report delves into the core concepts of management accounting, emphasizing its role in providing crucial financial and non-financial information to managers for effective decision-making. It examines various management accounting systems, including inventory management, cost accounting, job costing, and price optimization, illustrating their application through the example of Prime Furniture. The report further explores management accounting reporting, highlighting different methods used to generate performance-related information. It then evaluates the advantages of these systems, such as cost tracking and inventory management, and emphasizes the necessity of integrating management accounting systems and reporting for informed decision-making and strategic planning. The conclusion underscores the importance of measuring, analyzing, and controlling organizational performance through various reports and systems to achieve company objectives. The report also provides references to support the findings and analysis.

Management
accounting
LO1

Content
 Introduction
 Management accounting
 Different management accounting and its requirements in context
of an organisation
 Management accounting reporting system
 Different management accounting reporting system and its
requirements in context of an organisation
 Evaluate different advantage of management accounting system
 Integration of management accounting system & management
accounting reporting
 Conclusion
 References

Introduction
 Management accounting is the
process of maintaining records of
all important internal information
of enterprise so it becomes easy to
take strategic decision for the
purpose of betterment of
company. With the help of such
technique it become easy to
outsider like creditors, merchant
bankers, debenture holders, QIB's,
shareholders to understand
whether company is performing in
profitable manner or not.

Explain management accounting
 Management Accounting is the provision of financial as well as non financial
decision making information to managers. It is also known as cost accounting
system. Management accounting involves the practice of identification ,
measurement, analyse, interpret ate and communicate all the relevant important
financial information to different managers of various department so that they can
easily achieve the objectives of the company.

Different management accounting
systems
 Inventory management system
 Cost accounting
 Job costing
 Price optimization

Management accounting reporting
 Management accounting reporting: It is a process of generation various
reports related to management accounting that involves information regarding
performance of organisation. To generate such Information various type of
methods are used by company prime furniture so that to achieve true and fair
information.

Various kinds of management
accounting reporting methods
 Budget report
 Inventory management project
 Accounts receivable report
 Performance card
 Cost managerial accounting
reporting
 Order information report

Evaluate different advantage of
management accounting system
Management accounting system Benefit
Cost accounting system This system is adopt by prime furniture as with the
help of it different costs can easily be track which are
involved in operations of business.
Inventory management system It is follow by Prime furniture because with the helps
of it smart managers can easily analyse requirements
of stock at particular point of time and make
arrangement for it so business runs smoothly.
Price optimisation system Prime furniture is used it to fix suitable price for
different design furniture as it tends to helps to meet
customers expectations.
Job costing system This system is used in Ryder Architecture for the
purpose of analysing cost of different activities that are
performed according to specifications of clients.

Integration of management accounting
system & management accounting
reporting
 In context to beneficial of prime furniture it is necessary for
organisation to integrate management accounting system &
accounting reporting as both these concept help management team
in effective decision making or to formulate plan which tends to
help organisation to achieve goals and objectives.

Conclusion
 After thorough study and analysis final conclusion is made that
management accounting includes various activities like
measuring, analysing, monitoring, controlling performance of
organisation to do effective decision making future. To access
true status of company , various different management
accounting report and system are formulate as well as
generated by company.

References
 Alexander, D., Adamo, S., Di Pietra, R. and Fasiello, R. eds.,
2017. The history and tradition of accounting in Italy. Taylor
& Francis.
 Beams, F.A., Anthony, J.H., Bettinghaus, B. and Smith, K.A.,
2016. Advanced accounting. Pearson Education Limited 2018.
 Caruana, J., Brusca, I., Caperchione, E., Cohen, S. and Rossi,
F.M., 2018. Financial Sustainability of Public Sector Entities:
The Relevance of Accounting Frameworks. Palgrave
Macmillan.
 Collis, J. and Hussey, R., 2017. Cost and management
accounting. Macmillan International Higher Education.

Thank
You