HI5017: Managerial Accounting Assignment Report on MAS Evaluation

This report evaluates the role of Management Accounting Systems (MAS) in contemporary organizations, examining their impact on managerial decision-making. It analyzes various MAS techniques such as Activity Based Costing (ABC), Balanced Scorecard (BSC), Just-in-Time (JIT), and Total Quality Management (TQM), as applied in a case study involving a multinational company. The report assesses the relevance of MAS to operational and strategic levels, comparing the findings with another case study, focusing on the banking industry. The analysis includes the identification of specific outcomes and lessons from research findings, particularly regarding the implementation of MAS in uncertain competitive environments. Furthermore, the report discusses the importance of MAS in assisting managers in making informed decisions, contributing to the achievement of business goals, and ultimately, improving organizational performance.

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
Name of the Student:
Name of the University:
Author Note

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Table of Contents
Introduction........................................................................................................................4
Evaluation of the role of management accounting system (MAS) and provisions of
accounting information.......................................................................................................5
Identification of any three examples of different types of MAS methods or techniques
from the case study:.......................................................................................................5
Relevance of MAS to contemporary organization.........................................................6
Evidence with reference to the above from the case study given about the
company.....................................................................................................................6
Specific outcomes or lessons that are learned from each of two articles and its
research findings that will be useful for management accountants in Australian
companies to learn from..............................................................................................12
Conclusion.......................................................................................................................13
Reference........................................................................................................................15

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Abstract
The purpose of this paper is evaluation of the role of newly implemented management
accounting system for the organization and also to explain provision of accounting
related information for multinational company as per the case study given. The paper
also aims for identification of techniques with respect to MAS which are relevant in case
of operational activities of the company. The paper involves evidence for MAS to
determine whether that becomes relevant for the case of multinational organization. The
paper further aims to have comparison for research findings in between two
organizations which are using MAS. Moreover, paper talks about importance of
management accounting system for uncertainty with respect to competitive environment
related to the specific organization.

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Introduction
Techniques of contemporary management accounting being Activity Based
Costing, Balanced Scorecard as well as Just in Time or may be Total Quality
Management are specific techniques that have gained with significance. Management
accounting has been considered to be quite useful for business managers of the
company (Otley 2016). Specific modifications has been brought into conventional
management accounting system and has led to contemporary management accounting
system that is important for managers in taking decision for the business firm .
Selection of accounting system is unsuitable for business firm and can negatively affect
strategic or operational functions for the position of the firm. Contemporary
management accounting has various advantages and its implementation is very
successful being an important part and reins unsolved problem that creates the barrier
in the benefits that arises from techniques of management accounting derivation
(Schaltegger and Burritt 2017). Specific challenges of the industry with globalized
competition arises and in case of fluctuation of macro-economic conditions
management accounting plays a significant role for saving the industry for advantage
offering over its value as well as significance.
Techniques of contemporary accounting has brought about improvement into the
performance of the organization (Chenhall and Moers 2015). Functions of management
control have been considerable as user friendly system in case of line management.
Management accounting systems as well as accounting information provision leads the
management of the company to make decisions and has created advantage and
significance over competitive edge. Design of efficient management system with respect

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to costs is considered to be very valuable task for business firms as well as for
management accountants. Management system arises on the basis of technology
across value chain in order to support strategies related to business. The paper aims to
discuss about three different methods of management accounting used with respect to
particular case study given. It involves evidence for Management Accounting System
and its importance with respect to contemporary organization. Further, the discussion
includes comparison based on findings in case of two different case of real life company
on the basis of MAS. Therefore, paper includes MAS relevance with respect to
uncertain competitive business environment and further it discussed about specific
outcomes and impact arising from findings of research from both the cases.
Evaluation of the role of management accounting system (MAS) and provisions of
accounting information
Identification of any three examples of different types of MAS methods or
techniques from the case study:
MAS techniques useful are in the form of ABC, BSC, JIT as well as TQM
(Pavlatos and Kostakis 2015). Business manager seeks information on above
mentioned management accounting system techniques basis. It can be found out from
the case study that MAS technique in the form of ABC, JIT and TQM has been useful
for case study. From the case it is relevant that Company-A as manufacturer for ease
procedure with respect to raw materials and reduced steps useful for manufacturing
process uses ABC/ABM technique of MAS in the standard form which has created
complication and could not serve with the requirements and that happened in case of
usage of JIT technique. Techniques of Management accounting system had been

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implemented in case of independence of each other and has made use of general
process or techniques and also utilized several aspects of system (Goetsch and Davis
2014). Specific activity drivers for overhead allocation , for certain scorecard running as
well as for external and various supplies and also for various deliveries have been used
by Company-A and it made use of Total Quality Management(TQM) with safety
incorporation.
Techniques of ABC/BSC have been inappropriate for the purpose of
manufacturing of the organization. TQM has been considered as a very important
technique for its process incorporation and has proved to be useful for the purpose of
modification of the company. ABC was unsuitable to be considered as proper technique
for manufacturers. This was impractical technique for simple manufacturing process of
the business organization. Further, company managers made use of technique of Total
Quality Management at operation level and made specific control over various
variances for the supply chain purchase. This special technique came out to be
successful and made pressure free for various kind of variances. Management
accounting system made use of certain techniques for implementation into operation
done by company managers and to take decisions on the basis of collected information
with the help of this and its relevance became considerable and absolute.
Relevance of MAS to contemporary organization
Evidence with reference to the above from the case study given about the
company.
It can be found from the given case study that for decision making of the specific
multinational company operational management does not depend on internal

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information with the help of management accounting system. The management of the
company for tactical position do have faith on collected information by managers with
specific management accounting system techniques. On the other hand evidence for
the case is relevant in the way that management related to strategic position within the
particular multinational company find less relevance for management accounting
system in case of information collection for making decisions for the purpose of
manufacturing. Further, it can be found that in the given case company’s strategic
managers very rarely focus on inclusion of external factors as well as macro and micro
economic indicators, trends of technologies and market indicators in specific important
cases techniques of management accounting system is implemented on irregular basis
for the company and considered as relevant. Certain examples which can be cited
relevant to case study given in the way that MAS is relevant to the operational purposes
of the organization or not. Management accounting system used has been implemented
to the company which being limited has brought about low expansion of the system.
The case has evidence being that Company-A using management accounting system
as the manufacturer shows the difficulty of the collected information with the help of
techniques used by management and it became unessential to include some specific
functions.
Management accounting system has been considered to be irrelevant for the
company and has brought its specialty for data collection and for producing report that
is not necessary (Lavia López, and Hiebl 2014). For example- there is the relevance in
the case of Company-A as per the given case that shows installation has rolled back
instead of management accounting system modifications. There has been a good

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response from the side of Company-A with respect to MAS technique for internal
development also can be known as variance distribution of multi-level. Another example
can be- known as an evidence as a purpose from case study being the technique above
had the aim for tracking of variances with KPIs and company has used budgeted figures
in order to trace as well as allocate business related to manufacturing of the company
for the purpose of sale. It is evident as overall on the basis of given case study that as
per findings of research models of management accounting are inappropriate for the
company. MAS has brought about failure which includes the reason being no
implementation of strategies for the purpose of planning (Hill 2017). Hence, there is an
evidence that management accounting system has not been fully utilized. For example-
argument in the case study reveals that management accounting system has no
relevance to Company-A at the strategic level due to less scope on implementation of
such technique. Comparison of two case studies based on findings that discussed
about management accounting system and to determine whether both the companies
have similar findings or different one.
On the basis of case 1 of multinational company it can be found that company crisis
brought about contemporary management accounting system (Cook 2015). It can also
be found that for getting the way for strategy with respect to acquiring and divestment
company did face specific finance reporting and also owned management accounting
system and used various techniques being related to it. Fact about the company
became relevant with respect to the findings from case 1 in the way that management
accounting system was utilized in believe in incorporating various divisions of business
of the company into one single separate system. From case 1 it can be found that

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location or specific financial reporting and information related to management
accounting that is accessible at global level came out to be very essential as well useful
in providing with benefits and therefore it can be found that it could bring a major
change through motivation. Through findings it can be relevant that a new
implementation in the management accounting system are in the form of two parts:
 For the purpose of investigation in case of information for providing to the
company management of all level to make decisions it came to be useful.
 The extent to which function of new management accounting system that has
been implemented had the requirement for meeting with the requirements of
company users.
In case of banking organization in case 2 it can be found that with respect to
implementation of management accounting system certain changes can be found that
brought about improvement into the organization’s performance. In case 2 with the help
of management accounting system there has been increase into banking organization’s
performance. There arises direct relationship in between banking organization’s
performance and management accounting system that could implement into the
process of banking organization. In case 2 as per findings there has been vital impact of
management information system into organization’s performance. A positive impact
can be seen on implementation of new management accounting system that could bring
44.3% change for performance of banking organization due to management accounting
system. All the variables play a vital role in the form of influencing factor of management
accounting system for improving more of performance of the organization. It became

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evident to have positive result of MAS on banking organization‘s performance with the
help of findings in case 2.
Findings in case 2 had the focus on management accounting system and
performance of the banking organization and also research based on that brought to
have positive result into the organization. As per the findings conclusion can be made
from case 2 that contemporary management accounting system model came out to be
successful for operational activities in the banking organization. Development was
implemented into the model with positivity as well as success in the banking
organization. Contribution of management accounting system to its performance in case
of uncertain circumstances involved most competitive actions and demand of the
market as well.
Observations can be made in both the cases having different findings contrasted
from one other. In case of case 1 there has been the findings which shows
management accounting system became essential for business firm in order to make
decisions by management and for operational purpose of manufacturing. It could be
found that company did not response well to the MAS implementation. The collected
information with the help of several techniques of MAS came to be irrelevant. MAS
models remained to be inappropriate in case of the company. Planning purpose was not
served by it and also it did not serve for good functioning. In case of case 2 it could be
found that there had been positive effect of MAS on performance of the organization.
Model related to contemporary management accounting brought about success to the
organization for its operational activities. In case of uncertainty the organization has
used MAS that has brought about increase in demand for itself into the competitive

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edge of the market. Therefore, in case of case 2 positive relationship can be found
between MAS as well as performance of the organization on MAS techniques
implementation.Conclusions that can be made about MAS relevance in today’s
uncertain competitive business environmentIn the given case study the evidence revels
that contemporary management accounting system could not be well utilized by
Company-A for well utilization by company’s management at all the levels type and
MAS scope and also the failure that had taken place due to management accounting
system implementation that brought about with argument with the suggestion that
collected information with management accounting with the help of various techniques
of MAS do include specific points with relevance but does not hold any significance for
strategic level management due to failure that took place for improper strategic plans.
Conclusion can be made that in case of research there has been significance that
shows that Company –A could roll back the management accounting system with
implementation. In case of relevance of management accounting system for Company-
A argument can be made where plans had taken place at exact time with specific
measures but came out with failure. Implemented MAS had complexity that was
unacceptable for company’s management that brought about to take decision for
system rationalization (Mokhtar, Jusoh, and Zulkiflil 2016). It can also be concluded
that the user had no satisfaction that created barrier for effective implementation in case
of newly management accounting system. Earlier system that was used could not
provide with good range of information as expansion and so it was considered that
newly management accounting system was understood well by users and could provide
management with good benefits over the previous one. It can be seen that functions

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removal was considered to be a method as a return to management with consistent
information.
Specific outcomes or lessons that are learned from each of two articles and its
research findings that will be useful for management accountants in Australian
companies to learn from
In case 1 the JIT system was considered to be invalid technique for the company
but TQM was considered to be successful. ABC was rejected as it could not provide
with all service for manufacturing process (Monroy, Nasiri and Peláez, 2014). The
model was considered to be impractical in that situation. Elements of ABC technique
with respect to simplicity of process of manufacturing were considered for being
impractical. Outcomes in case 1 was:
 Decision making management of the company at all the levels could not believe
upon internal information according to management accounting system (Welford
2016). Tactical level managers of the company can have faith partially on the
information that is provided according to management accounting system.
 Strategic level management of the company very rare rely on the information
according to management accounting system in order to take strategic decisions.
Macro and micro economic factors and trends of global levels considers
information to be important for strategic decision making for the company. It also
came to be evident that strategic mangers are not considered to be regular users
for newly implemented management accounting system.
Outcome for case 2 or lessons that can be learned are:

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 In the form of globalization specific dimensions, liberalization and modernization
brought for increase in the completion of increased demand in case of banking
organization and MAS application brought formulation as well as implementation
of strategy of the organization for bringing significant performance of the
organization.
 In the case of corporate social responsibility as well as corporate governance
playing significant role for banking organization, management accounting system
has supported with good governance and in implementation into the
organization. Effective decision of the management was very well supported but
management accounting system and could bring transparency for making
decisions by the management.
Conclusion
From the above discussion it can be concluded that newly implemented
contemporary management accounting system became very crucial as well as vital in
case of the organization. Important role has been played in the form of various
techniques such as ABC, JIT or might be TQM for being practically involved into the
procedures of implementation for organization. From the given case study it can be
found that MAS for multinational company by using MAS brought about failure for the

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organization. The collected information through MAS was inappropriate. In the above
case 1 it can be found that ABC technique was considered to be impractical in case of
use but TQM was implemented and came out to be successful. MAS was irrelevant for
using in case of operational activities of the multinational company. At different level of
management decision making was proved to remain insufficient in the above case.
From case 1 it can also be found that due to failure in strategic planning functionality
failure in case of company took place. There arised a very limited scope as well as
types along with such techniques implementation with respect to management
accounting system.
It can also be concluded that with reference to the above case 2 that banking
organization had positive effect through new contemporary management accounting
system implementation. Positive relationship can be seen between performance of the
organization as well as MAS. Specific measures became considerable that brought
about success for management accounting system into the banking organization
performance. It can be found from the above discussion with a change of about 44% on
implementation of new techniques into the organization. All levels of organization’s
management were satisfied in decision taking on information basis with management
accounting system. Therefore, it can be concluded that this brought about increase in
the demand of the market.

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enterprises. Routledge.

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