Management Accounting: Systems, Reports, Techniques, and Analysis

This presentation provides a comprehensive overview of management accounting. It begins with an introduction to management accounting and its systems, differentiating it from financial accounting. The presentation then delves into various management accounting reports, such as inventory management reports, accounts receivable aging reports, and performance reports, highlighting their importance in organizational decision-making. Furthermore, it explores different management accounting techniques, including marginal costing, fixed and variable costs, cost allocation, normal costing, standard costing, activity-based costing, inventory costs, and overhead costs. The conclusion emphasizes the role of management accounting in providing valuable information for strategic planning and control. The presentation also includes references to relevant academic sources. The content is suitable for students seeking to understand the core concepts and applications of management accounting within a business context. This presentation is a valuable resource for students studying management accounting, offering insights into key concepts and practical applications.

MANAGEMENT ACCOUNTING
LO1, LO2

Covered content
• Introduction
• Management accounting and systems
• Difference between management and financial accounting
• Management accounting reports
• Management accounting techniques
• Conclusion
• References

Introduction
This presentation covers information about management
accounting system, different types of reporting that help in
dealing with various financial problems. Various techniques
of management accounting also defined in this presentation.

Management accounting and
Systems
Managerial accounting can be defined as the tools and
techniques that prepare and present available data and
information in such a professional way. It may help the
management in order to make its planning and decisions in
an effective manner so that efficiency and performance can
be attempt at its fullest.

At the beginning of nineteenth century, big private
organizations felt the necessity of a procedure that can
effectively measure and control over internal production
centres in order to survive in economy. Managerial
accounting plays a crucial role in managing and
operating internal activities of an organization.
Origin, Role and Principles of
Management Accounting

Difference between Financial and
Managerial Accounting:
Aspects Financial Accounting Management Accounting
User Financial accounts are prepared to
provide information to external
stakeholders.
Managerial accounts are creates to help
the internal users, specially management.
Format An specific formate provides by the
governance is followed in preparation of
these statements.
These statements are not mandatory to
be prepared hence haven't any particular
format.
Data This approach only covers funds and
money related data and information.
Monetary as well as non-monetary
material is included in this accounting
process.

Management Accounting System
Management accounting system is a process of collecting,
classifying, recording, summarising and presenting financial
and non-financial meaningful content in order to help the
administration in determining, planning and organising its
policies and procedures.

Continue..
• Inventory management system
• Cost accounting system
• Job costing system
• Price optimising system

Inventory Management System
It is the most essential system for an retailer company
as inventory is the main source of revenue in such
firms. This system helps to keep a record of products,
company holds during a particular time period,
estimate required raw material, materials tracking,
automated reordering etc.

Cost Accounting System
It has been found that in order to effectively producing profit
from business activities, it is required to know the cost
allocated with the specific activity. It includes events
founded on accepting, recording, analysing, grouping and
summarizing costs related with valuable goods and services.

Job costing system
Job costing system is evolve to calculate the cost of
particular task or unit. This system is beneficial to
determine the expenditures related with specific job
involved in production activity and other division.

Price Optimisation System
Price optimisation system is a mathematical tool that
aids in analysing the perception and behaviour of
customers regarding the prices of various products in
different markets.