Evaluation of Management Accounting System and Reporting Techniques

This report provides a comprehensive overview of management accounting, emphasizing its importance for business organizations, particularly the UCK group. It delves into various management accounting systems such as cost accounting, price optimization, inventory management, and job costing, outlining their functions and benefits. The report further explores different types of accounting system reporting, including performance reports, account receivable aging reports, operational budget reports, job cost reports, and inventory management reports. It critically evaluates these reporting techniques, highlighting their role in financial planning, decision-making, and overall organizational performance. The conclusion underscores the significance of management accounting for effective financial transaction management and future planning. The report includes references to academic sources supporting the presented information.

Management Accounting
PART 1

Covered content
• Introduction
• Various management accounting systems
• Different types of Reporting system
• Benefits of using MA system
• Critical evaluation of reporting techniques
• Conclusion
• References

Introduction
Management accounting is an essential aspect for every business
organisation. They mostly use accounting software for the
purpose of recording their everyday financial transactions. This
project summaries with various information about types of
accounting and reporting systems. Further, a well organised
evaluation is done through collected data about using various
types of systems in an organisation.

Different Management accounting system
Accounting provides valuable information about a selective but
effective cooperation of corporate individuality. By the help
management accounting system, owner of company can easily
control their overall growth and stability. The major role of
accountant is to make future planning in the best and suitable
manner so that better outcomes can be generated in a quick time.

Function of using MA system
 Planning and forecasting: It is an important function which is
mostly held responsible for making future planning in respect of
attaining more effective results.
 Furnishing information: As per this particular function, every
data which is being collected during an organisational process
would be furnished in an effective manner.

Importance of management
accounting system
• Helpful in forecasting the future: The primary significance of
using accounting systems is to make future estimation of their
total gains collected during the year.
• For the better decision-making: In this, cost and production
availability are mostly the decided aspects in any decision.

Types of Accounting system
Cost accounting system: It is one of the effective designs
which is used by firm in order to estimate total cost of their
products and services that are being used in profitability
analysis.

Price optimisation
It is one of the mathematical tools by which UCK group of
company determines overall customer reaction about various
prices for their products and services. This is mostly used to
evaluate the total prices that company charges for their products
to meet out their set objectives in an effective manner in order to
collect operating profitability.

Inventory management system
It refers as the most crucial aspect of management
accounting system to control and manage their stock level in
an organisation. In case UCK group of company strives to
achieve and hold an optimal stock of products, they need to
make a systematic system which would keep detail records
of their information.

Job costing system
It is known as that form of particular order costing which
will be applied where work is undergoing as per the
requirements of customer’s special needs. It would be
effectively different from each other. The work is mainly
carried out within a manufacturing industry and make
operations as regular identified units.

Various types of accounting system
reporting
A report is a detailed list of information that would consist
of various data about financial transaction which would be
recorded in different statements of company. A report is
made up of particular intention of relaying information
about certain activity in the manner that factual and relevant
outcomes can be generated positively.

Performance report
It is an essential activity in any project communication of UCK
group. It consists of collecting and disseminating vital
information about project’s progress, allocation of resources and
forecasting for future growth. These are crucial for outside
stakeholders in order to make effective management plan. This
report provides information about past and current year’s
performance of an organisation.

Account receivable aging report
Such kind of reports are more effectively useful in determining
total lists of unpaid client invoices and unused credit details. This
happens to be primary tools which is used for the purpose of
collecting personnel to identify which invoice is overdue for
payment and time to get recover those particular amount.

Operational budget report
It is known as combination of expenditure, expected future
costs and estimated incomes over the course of an
accounting year. This types of reports are completer prior
completion of year so that proper forecasting of income and
gains. While preparing such kind of report the manager use
to consider sales costs, overhead and fixed expenses and so
on.

Job cost report
It is define as perfect methods of recording the total cost of
producing a individual product. A project manager always
have look over the cost of each job in order to maintain data
which is mostly related with business operations of UCK
business.

Inventory management report
Keeping stock in warehouse is one of the vital task for every
business. This reports mainly overlook various aspects of stocks
which required to be kept by the company in an accounting time.
The closing and opening detail of stock are held recorded in their
respect day of occurrence. ABC costing, Inventory turnover
ratio's and some other stock controlling techniques are their to
manager business stocks during the time.

Benefits of using management accounting
By the help of better accounting system which often assists in
improving business owners decision-making procedures. There
are various crucial advantages of using accounting systems. This
will assists in improving overall performance of an organisation.
It provide proper information regarding total gains or loss which
is made by the business at the end of year.

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Different types of management
accounting system
Benefits
Cost accounting system With the help of this accounting, UCK group of would easily manage
their manufacturing process in more effective manner.
This will assists in controlling additional cost of the company.
Price optimisation It is more productive to determine total perception of customer about
various price charge by the company.
This is more effective element for the company to increase profitability
during the time.
Inventory management system This system would assist in managing and controlling their overall
inventory level.
Job costing system Accessibility of the company can be determine in more effectively by
using this system.
It would deliver total cost and expenses require to develop an individual
and group of product.

Critical evaluation of management
accounting reporting techniques
In order to determine positive results from use of accounting
system reporting it would be more vital to make use of data
in order to present valuable profit of the company. This will
be helpful for the management for taking complete overlook
out of profit and loss statements, balance sheet and cash-
flows statements.

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Evaluation of Accounting system reporting
Performance report : These kind of reports are mainly helpful in developing a well organise
plan after making proper evaluation of past and present year performance of an organisation.
The primary aims of this is to gain future sustainability for the company. This would be helpful
in continuous planning of cost reduction.
Account receivable report: As per this, a well organise detail information is being collected
about their customers. It would assists in determining total time of payment recovery needed
for the overdue payments. This will help in getting timely results out of UCK group.
Operational budget report: The primary objectives of an organisation is to increase
maximum gain through selling their products and services. By this, excess costs and expenses
would be controlled in more quick time.
Job cost report: This kind of report are generally helpful for UCK group in respect to delivery
positive direction to their business operations. This will assists in order to examine total costs
and expense use for a specific period of time.
Inventory management system: This will assists in managing their opening and closing stock
record for the company. By the help of this resources of UCK business can easily be managed
in best and suitable manner.

Conclusion
From the above project report, it has been presented that
management accounting is an essential aspects for UCK group.
By the help of accounting system and reporting they can easily
make their financial transaction in appropriate manner in
respective financial statements. The overall project is providing
more positive outcomes which will be helpful in future planning
of an organisation.

References
Burritt, R.L and et. al., 2011. Sustainable supply chain management
and environmental management accounting. In Environmental
management accounting and supply chain management (pp. 3-20).
Springer, Dordrecht.
Hansen, A., 2011. Relating performative and ostensive management
accounting research: reflections on case study methodology.
Qualitative Research in Accounting & Management. 8(2). pp.108-
138.
Kihn, L. A. and Ihantola, E. M., 2015. Approaches to validation and
evaluation in qualitative studies of management accounting.
Qualitative Research in Accounting & Management. 12(3).
pp.230-255.

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