Management Accounting Systems: An Analysis of Reporting and Types

This report examines the essential requirements of various management accounting systems, emphasizing the importance of communication, relevance, value, and credibility. It details different types of systems, including job costing, cost accounting, and inventory management, highlighting their functions and benefits. The report also explores several reporting methods, such as budget reports, accounting receivable aging reports, job cost reports, performance reports, and other managerial reports, and their significance in business analysis and decision-making. The conclusion emphasizes the benefits of management accounting in improving efficiency and financial performance. The report includes references to academic sources. This assignment is designed to provide students with a thorough understanding of the subject, with additional resources available on Desklib, including past papers and solved assignments.

Management Accounting
System

Table of contents
TITLE OF RESEARCH
Essential requirements of different types of management
accounting systems.
 Main types of management accounting system
Different methods used for management accounting
reporting

Essential requirements of different types of
management accounting systems.
Influence: Communication is one of the critical part that has
a large influence of the working of the organization. This
further boosts in improving the decision making process.
Relevance: It is a common fact, that information is important
for one and one. This is highly dependant on the individual as
well as the company that which information is important to
them in order to achieve their desired objectives.

Cont...
Value: The influence of value is predicted. Management
accounting is useful for the Organization as it link's their
respective processes to it's main goal for which they have come
into existence.
Creditability: By being responsible and regularly monitor the
activities at each levels aids in making the decision making
process by mainly concentrating on their purpose of existence.

Main types of management accounting system
Job costing system: It can be defined as a costing system that assigns the manufacturing
cost to each of it's individual product while monitoring all the expenses associated to it.
Cost accounting system: This method of costing enables the company to estimate the cost
while carefully analysing the company main indicators that includes profitability, inventory
as well as cost control.
Inventory management system: It is mainly concentrated on supervision as well as
management of stock as well as all the non-capitalized assets.

Different methods used for management
accounting reporting
 Budget Report: This report is mainly useful for the small business as it will
aid the company in analysing it's business performance and also controlling
it's cost. The budget that is estimated for the future period is mainly utilize
to compare the actual expenses with respects to the previous years.
 Accounting Receivable Ageing Report: This report is most important for
managing the cash flow of the company if it wishes to extend credit to their
customers. It further bifurcates the customer's on the basis of time period
the company has extended the credit to them.
 Job Cost Reports: This report show the important expenses that are
necessary required to be incurred to finance their business. This aids the
manager in order to predict it's expenses in context of their profitability.

Cont...
Performance Reports: These reports are mainly created in
order monitor the performance of each of their employee's and
ultimately the performance of the entire company.
Other Managerial Reports: All the other reports are included
under this report. These report particularly includes Order
information reports, project reports, competitor's analysis
reports and many other reports.

CONCLUSION
 This can be concluded from the above mentioned report, the
management accounting will be beneficial for them in improve
the efficiency and particularly the financial performance of the
company.

REFERENCES
 Bhimani, A., 2020. Digital data and management accounting: why we
need to rethink research methods. Management Control. pp. 1-15.
 Bromwich, M. and Scapens, R. W., 2016. Management accounting
research: 25 years on. Management Accounting Research.31. pp.1-9.
 Bruno, A., 2020. New Public Management (NPM) and the Introduction of
an Accrual Accounting System: A Case Study of an Italian Regional
Government Authority. Springer Nature.
 Chenhall, R. H. and Moers, F., 2015. The role of innovation in the evolution
of management accounting and its integration into management control.
Accounting, organizations and society. 47. pp.1-13.