Management Accounting Systems and Reporting for Zylla Manufacturing

Desklib provides past papers and solved assignments. This report analyzes Zylla Manufacturing's management accounting.

MANAGEMENT
ACCOUNTING

TABLE OF CONTENTS

INTRODUCTION
This assignment is prepared for the Zylla
manufacturing organisation that will provide the
understanding of the management accounting
and the essential needs of the different types of
the management accounting systems. It will also
provide the understanding of the different
methods used for the reporting of the
management accounting. Further the evaluation
of the management accounting benefits and their
application in the organisation will be provided.
At last the critical evaluation of integration of the
management accounting system and reporting
will be provided.

DEFINITION OF MANAGEMENT
ACCOUNTINGS
According to brooks (2016), Management
accounting is the method of interpretation,
preparation and identification of the management
reports by the organisation that are managed and
prepared to take the decisions of the business.
As per Hemmer and Labro, (2016) it is the study
that can ensure the statement combination which
are of non-financial nature that renders the valuable
and deep experience for taking effective decisions.
Ward, (2012) Has stated that it is the provision of
the data of the finance and a company advice for
the organisational use and for the business
development.

4 PRINCIPLES OF MANAGEMENT
ACCOUNTING
Following are the four principles of the
management accounting which are as follows:
Principles of
managemen
t accounting
INFORM
ATION
COMMUNI
CATION
Impac
t on
value
STEWAR
DSHIP
BUILDS
TRUST
1.Information is
relevant
2.Impact on
value
3.Stewardship
builds trust
4.Information

ROLE OF MANAGEMENT ACCOUNTING
The roles of the management accounting are
as follows:
1. Planning
2. Controlling
3. Cost accounting
4. Decision making
5. Financial management
6. Auditing

MANAGEMENT ACCOUNTING
SYSTEMS
 Following are the main four management
accounting systems that can be adopted in
Zylla organisation:
 Inventory Management Systems
 Cost Accounting Systems
 Price-optimising Systems
 Job Costing Systems

ESSENTIAL REQUIREMENTS OF INVENTORY
MANAGEMENT SYSTEMS
Following are the essential requirements of this
system:
Proper valuation of inventory: AVCO, FIFO
 Treat stock as money
 Decisions on buying
 Location of bar codes and inventories
 Stock control system
 Storage and ordering cost
 Inventory audit

MANAGEMENT ACCOUNTING
SYSTEMS
Cost accounting system:
Technique of cost determination
Estimation of cost
Product allocation

ESSENTIAL REQUIREMENTS OF COST
ACCOUNTING SYSTEMS
Following are the essential needs that must be
considered:
Proper Storage system:
Proper purchase system:
Systematic issues of items
Culture of control and efficiency
Proper coordination

ESSENTIALS OF JOB COSTING
METHODS
Job costing system:
Suitable only after confirmation of goods
Tracks cost of specific job
Job is assigned with unique number
Sub division of job
Direct cost are charged

PRICE OPTIMISATION AND ITS
ESSENTIALS
Price optimisation: This system determines
the behaviour of demand in respect to price for
profit maximisation.
Essentials:
Combines price and demand data
Clarifies the USP of business
Set the rules for guidance
Set of mathematical programs