Management Accounting: Systems, Reports, and Decision-Making Analysis

This presentation provides a comprehensive overview of management accounting, covering its systems and reports. It begins with an introduction to management accounting, emphasizing its role in decision-making through analytical techniques. The presentation then delves into various management accounting systems, including inventory management, job costing, cost accounting, and price optimization systems, highlighting their essential requirements and benefits for businesses like Prime furniture. Furthermore, it explores different types of management accounting reports such as operating budget reports, segmental/departmental reports, inventory management reports, and job costing reports, explaining their significance in planning, performance measurement, and decision-making. The presentation concludes by summarizing the key takeaways and the importance of management accounting in achieving organizational goals, supported by relevant references.

Management
Accounting

Table of Contents
 Introduction
 Management Accounting Systems
 Management Accounting Reports
 Conclusion
 References

Introduction
Management accounting refers to a technique in which the
assessment of the different types of analytical and interpretational
techniques can be made so that a wide variety of the decisions can
be taken. In this presentation, detailed discussion has been made on
management accounting systems. Additionally, specific analysis on
management accounting reports will be made as a part of this
assignment.

Management accounting systems
Management
Accounting:
Management
Accounting refers to
method of achieving
goals by measuring,
identifying, analysing
and to provide
information regarding
financial positions to
managers.

Continued…
Types of Management Accounting:
Inventory Management System- This system helps to determine
how many times organisations have sold their goods and replaced its
inventory .
Essential Requirements:
 Inventory management will save time of Prime furniture as bulk
stock requires time. With time saving technique can easily
manage their stock level.
 Prime furniture can derive accurate report with inventory system

Continued…
Job Costing System- In this system managers or accountant keep
records relating to cost of each job.
Essential Requirements:
Job costing system keeps track on labour cost and overheads. Prime
furniture by doing so can determine actual cost it derived from
overheads such as rent.
Prime furniture can find out different issues relating to different jobs
and can solve them. As job costing helps business to solve their
issues it save time as well.

Continued…
Cost Accounting System- In this system company's determine cost
that they have generated for producing a product or service. In this
way they can do cost control, valuation of inventory and analyse
their profit.
Essential Requirements:
 Cost accounting system provides accuracy that will help Prime
furniture to do work accurately. Accuracy leads to less error and
completion of work on time for Prime furniture.

Continued…
Price Optimization System- Price optimization system is a fundamental decision of
management. It helps to generate optimal cost for transaction of every sale. They provide
information how consumers will react to different prices of goods and services. Prime
furniture with this system can find right price for their products.
Essential Requirements:
 Prime furniture can easily raise price of products to get profit and reduce price to
improve sales volume and revenue.

Management Accounting Reports
Management Accounting Reporting
Management accounting reports implies proper planning, decision
making, performance measurement and regulation of operations to
take decisions. They are regularly formed throughout accounting
period. As they provide authentic information that helps in making
decisions in proper manner

Continued…
Types of Management Accounting Reports:
Operating Budget Reports- These reports are the statements that
represents all expenses incurred and revenue generated relating to
operations by companies for a specific time.

Continued…
Segmental/Departmental Reports- Departmental reports defines
objectives and goals achievement of companies for a reporting
period.

Continued…
Inventory Management Reports- These reports can be describe as
summary of existing stock of business.
Job Costing Reports- These reports act as tools for management in
order to evaluate cost of each job or to know standards that are
estimated.