Management Accounting: Systems, Reporting, and Benefits Analysis

This report delves into the realm of management accounting, presenting an overview of its core principles and applications. It explores various types of management accounting systems, including cost accounting and job costing, and examines their roles within organizations like UCK Furniture. The report highlights different reporting systems such as cost accounting reports, budget reports, and accounts receivable reports, emphasizing their importance in conveying data and aiding in decision-making. It emphasizes the benefits of using management accounting systems, such as ensuring accurate information and aiding in decision-making, and discusses the integration of these systems with organizational processes. The conclusion summarizes the effective use of management accounting systems and reporting to optimize operational work, referencing key resources for further study.

Management Accounting
Part 1

Table of content
• Introduction
• Types of various management accounting system
• Several types of reporting system
• Benefits of using accounting system
• Integration among reporting and accounting system
• Conclusion
• References

Introduction
Management Accounting is the way in which accountant implements various
provisions of accounting related information for making better decisions in
an effective manner. However, this can be rightly said that management
accountants are now using diverse kinds of tools for gaining competitive
advantage over the rivals.

Different types of management accounting
system
• It refers to the interpretation, analysis, identification and presentation of
accounting information’s which has been obtained with the help of
financial accounting and cost accounting.
• Management accounting can be described as ' a value adding continuous
improvement process of planning, designing, measuring and operating
both non-financial information system.

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• Cost accounting system:
A cost accounting system is a framework used by firms to
estimate the cost of products for profitability analysis,
inventory valuation and cost control. As it will be useful for
UCK Furniture Ltd to know which products are profitable
for the organizations and which one are not through
estimating accurate cost.

Different types of management
accounting systems
• The different types of management accounting systems and their role in
integration with different organizational process related to UCK Furniture
Ltd are discussed. As here are their essential requirements as below:
Job costing system:
• As job costing is a system, with the help of this manufacturing cost is
assigned to an individual product or batches of products.

Different management accounting reports
Management accounting reports are essential to convey and store data in the
form of facts and figures. In order to study a problem in organization it is
important to maintain records and review it on certain issues with its
advantages and disadvantages. Accounting reports are in written statement
and it enable management to take future decision and helps in controlling.

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Cost Accounting Report: UCK Furniture believes in maintaining cost
accounts as it guides and provide them many new techniques of costing that
is used in planning and making decision. Cost-accounting enables to gather
information for management and financial accounting.

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Budget report: UCK Furniture use to maintain budget reports so that they can
make planning to invest their money according to time, function and flexibility.
Account receivable reports: UCK Furniture is concerned with their account
receivables reports as this reports helps them to know about the sales of products in
credit. In this reports, ordinary sale of goods is prepared whose payment is still in
due and they need to receive payment in the form of promissory note later.

Importance of the management accounting
systems and its application
To ensure accurate right information is presented: With the help of this
accounting reports it is easy to gather correct and accurate information
regarding to costing, finance and investment. All the necessary accounting
facts and information are easily reported to management.
To aid in decision making: Accounting report enables management to take
appropriate actions in context to costing and making future investments.

Integration of management accounting systems
and reporting
Management accounting systems are the main tools which could be used by
the organization for managing the accounting related operational work.
Although, it is rightly said that by using these systems, company could attain
its pre-set targets and also able to make reports on the basis of them.

Conclusion
From the above mentioned presentation, this can rightly be
said that management of UCK Furniture uses various
management accounting systems along with their respective
reports in order to optimizes its operational work. Diverse
benefits are mentioned along with their application in its
operation.

References
• Hilton, R. W. and Platt, D. E., 2013. Managerial accounting: creating
value in a dynamic business environment. McGraw-Hill Education.
• MF SALTAJI, I.S.S.A.M., 2013. CORPORATE GOVERNANCE
RELATION WITH ACCOUTNING STANDARDS.Internal Auditing &
Risk Management. 8(3).
• Muralidharan, R., 2013. What do the Numbers Impact? A Study of How
Cost Accoutning Influences Employee Satisfaction

Thank you