Presentation: Management Accounting System for UCK Furniture

This presentation focuses on management accounting within the context of UCK Furniture, a company planning a training program for its new interns. It begins with an introduction to management accounting, emphasizing its role in analyzing operational performance. The presentation then details various management accounting systems, including cost accounting, inventory management, price optimization, and job costing, explaining their functions and applications within UCK Furniture. Furthermore, it covers management accounting reports such as budget reports, accounts receivable reports, performance reports, and inventory management reports, highlighting their significance in strategic decision-making. The benefits of these systems are also outlined. Finally, the presentation concludes with a discussion on the integration of management accounting systems with organizational processes and the importance of management accounting for the success of manufacturing companies like UCK Furniture, along with references to relevant academic literature.

Management Accounting
Part 1

Table of content
• Introduction
• Management accounting
• Management accounting system
• Management accounting reports
• Benefits of management accounting system
• Integration of management accounting and its systems with

Introduction
Management accounting is conducted by all the business entities in
order to analyse that all the operations are executed appropriately
or not. The organisation which is taken in this presentation is UCK
furniture which is planning to start training program for its new
interns. The Junior management accountant has been asked to give
a presentation to the interns.

Management
accounting
It is a technique which is used by all the companies in order to analyze
that it is performing well or not. It also help the managers to assess
that all the operational and executional activities are performed
appropriately or not. Management of UCK conduct management
accounting on regular basis so that actual position of the company can
be analyzed There are various management accounting systems that
are used by the managers of the company is order to successfully run
all the activities that are related to operations.

Management accounting systems
These are the systems that are used by most of the companies in order
to appropriately form all the management reports that are going to be
presented in front of internal stakeholders. It guiders them to make
strategic decisions that may help to enhance performance of the
company. The systems that are used by management of UCK Furniture
are described below:
Cost accounting system: It is used by most of the companies in order
to estimate the cost which is involved in their manufacturing process so
that actual profits can be analyzed for future period.

Continued...
Inventory management system: It is a system which is used by
manufacturing companies in order to keep detailed data of inventory
which is used to produce products. In UCK Furnitures it is used to
gather information of the goods through out the whole
manufacturing process.

Continued...
Price optimization system: As the name describes this system is
used to set the best prices for the products that can fit in to the budget
of the customers. It is used by the managers of UCK Furnitures in
order to analyze paying capacity of the buyers and then set
appropriate prices so that profits can be increased.

Continued...
Job costing system: This is used by manufacturing enterprises in
order to determine the cost which is involved in different tasks of the
company. It is implemented by the managers of UCK Furnitures to
analyze all the expenses that are faced by the organization while
performing different jobs that are based on customer's specifications.
Price optimization system is very important for the organization
because it helps to set optimum prices for the products.

Management accounting reports
Management accounting reporting: It is the process of formulating
various management reports that are analysed internal stakeholders
such as managers, employees, directors. All of them directs top
executives to make strategic decisions regarding organisation's
performance. The methods of reporting that are used or the reports that
are generated by managers of UCK Furnitures are described below:

Continued...
Budget report: It is the principle component of the management
accounting reports because it consists all the information of
organization's budget which is allotted to different functional
departments. This report is generated within UCK Furnitures in order
to measure that all the operations are executed in budget or not. It is
very beneficial for the company as it can help to attain financial goals
by using the monetary resources in limit.

Continued...
Account receivable report: The companies that are providing credit
to the clients create such type of reports to record the outstanding
amount which is going to be paid by them in future. Managers of UCK
Furnitures generate these reports in order to analyse the total owed
amount by the customers. It is very advantageous for the company
because it helps to tighten the credit policies so that all the collectable
amount can be collected on time.

Continued...
Performance report: Such type of reports are generated to evaluate
performance of whole organization and each employee. It is created by
the managers of UCK Furnitures in order to determine that
organization is able to attain growth and development in upcoming
period or not. It is salutary for the company because it guide the
managers to appraise employees according to their performance to
motivate them.

Continued...
Inventory management report: All the information regarding goods
is recorded in such type of report so that actual status of inventory can
be determined. This report is created by the mangers of UCK
Furnitures to keep a track report of stocks that are used in the
manufacturing process. It is very beneficial for the company as it can
help to analyse actual status of the inventory whether it is in the
warehouse or in transit.

Benefits of management accounting
system
Benefits of Cost accounting system:
It guides the managers to analyze the actual cost which is faced by the
company while manufacturing the products.
It helps to analyze the profitable and non profitable activities of the
organization

Continued...
Benefits of Inventory management system:
Managers may keep the information of the inventory through out the
supply chain.
Guide the management to attain higher productivity and efficiency by
using the inventory in appropriate manner.

Integration of management accounting
and its systems with organizational
processes
Management accounting systems and reports are very beneficial for all
the manufacturing companies like UCK Furnitures because it helps
internal stakeholders to analyse actual status and performance. Cost
accounting system is used within the organisation to determine the
costs that are involved in manufacturing process. Price optimisation
method is implemented in order to set such prices for the products that
can be easily afforded by the customers.

Conclusion
From this presentation it has been concluded that management
accounting is the process of formulating management reports that
guide internal stakeholders to evaluate overall performance of the
company. Various management accounting systems like cost
accounting, inventory management, job costing, price optimisation are
used to successfully operate the business. The reports that are
generated by the managers are account receivables, inventory, budget,
performance etc. to keep a track record of the company.

References
Senftlechner, D. and Hiebl, M. R., 2015. Management accounting
and management control in family businesses: Past
accomplishments and future opportunities. Journal of
Accounting & Organizational Change. 11(4). pp.573-606.
Van der Meer-Kooistra, J. and Vosselman, E., 2012. Research
paradigms, theoretical pluralism and the practical relevance of
management accounting knowledge. Qualitative Research in
Accounting & Management. 9(3). pp.245-264.

Thank You