Holmes Institute HI5017: Managerial Accounting Report and Analysis

This report provides a comprehensive overview of managerial accounting, focusing on the practical application of various techniques. It begins with an executive summary that highlights the use of activity-based costing, just-in-time, and balance scorecard methods. The report delves into the relevancy of modern management accounting systems, exploring their impact on decision-making and business goals. It includes examples of different management accounting methods, such as activity-based costing, just-in-time, and balance scorecard methods, and discusses their implementation and impact. The report also addresses the relevance of these techniques in the context of increasing global competition and changing management processes. The report includes a comparison and contrast of the methods, conclusions related to market conditions, and lessons learned from the process. Finally, it analyzes the impact of these systems on businesses, their decision-making processes, and their effectiveness in achieving business goals, along with the discussion of relevant journal articles.

Running head: MANAGERIAL ACCOUNTING
Managerial accounting
Name of the student
Name of the university
Authors note

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Executive summary
The study topic deals with the management accounting examples for company namely
activity based costing technique, just in time technique, balance scorecard method which are
considered as an effective management technique. On the other hand the relevance of the
management accounting technique as a whole. Furthermore another separate article has been
chosen in this case will be related to the effective business requirement as a whole. Lastly the
two general outcomes of these accounting tools and techniques have been generated along
with a supportive conclusion at the end.

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Table of Contents
Introduction....................................................................................................................3
Discussion......................................................................................................................3
Examples of different type of management accounting methods..............................3
Activity-based costing technique...............................................................................4
Just in time technique.................................................................................................5
Balance scorecard method..........................................................................................5
Relevancy of the modern management system..........................................................5
Increasing exposures to global competition...............................................................6
Comparison and contrast............................................................................................7
Conclusions related to the management accounting process over certain and
uncertain market conditions...................................................................................................8
Lessons learned from the management accounting process....................................10
General issues...........................................................................................................10
Research design issues.............................................................................................10
Conclusion....................................................................................................................11
References....................................................................................................................12

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Introduction
The above study assignment deals with the specific management examples related to
accounting systems like ‘Total Quality Management”, “just In Time management” and
“Balance Scorecard” methods which is considered as the most critical aspect of management
accounting policies and process. On the other hand the relevance of the current management
accounting process concerning the regulatory organisations has also been addressed. Since
management accounting deals with accounting for company managers, therefore it is to be
considered as an essential aspect for the business to grow. Apart from this, the overall
outcomes have also addressed over this case topic along with a suitable conclusion at the end.
Discussion
Examples of different type of management accounting methods
“Contemporary Management Accounting system” such as “Activity-Based Costing”
method, “Balanced Scorecard” process, “Just in Time”, “Value Chain Analysis”, and “Total
Quality Management” technique. These are the practises which have gained prevalent actions
during bookkeeping. Especially in the 20th century where the accounting information system
is not appropriately kept for meeting uncertain expectations, the relevance of the management
accounting system had faced a lot of questions by the business managers. Thus the purpose of
the academic research is to maintain the significance of the process of organisation
accounting is known as the noble pursuit, and there exists lack of achievement and worth.
Hence these types of contemporary management system are essential for the firm’s .therefore
the selection of inappropriate system may result in harmful effect over the tactical and
decision making process over operational and positioning of the firms. The aids of these
“contemporary management accounting system” are evident, realistic and positive operation
of the same technique can draw practical benefits. The industry challenges seek global

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competition and fluctuate the microeconomic conditions related to the aspect. The onset of
the worldwide game and complete starter to the use of extraordinary expertise have enforced
the companies to change the style of operation. Hence overall Increase on the IT automatics
has forged over-functioning control with individual user friendly systems, operational
capability towards the lower level of line management. By the use of rapid high end
technology, efficiency in the communication increased communication technique would like
to seek specific competitive advantage on the firms. Thus there is a need for drawing specific
effective techniques or mechanics by focusing on how the organisations could use specific
innovative methods to the domain of financial accounting process. Hence the IT-based
accounting techniques will be useful to determine the acquisition and implementation of
some modern multinational firm. These firms are based over sure accounting programme
along with the contemporary functionary process to assess the relevance of these techniques.
These process had identified specific active and multinational goals and add particular
rationalised value over the process in main the behavioural and system upgradation. Thus the
study handles certain basic features related to the usefulness of the accounting theories and
process as a whole. Therefore from this article out of many accounting techniques, three
effective methods have been chosen initially. These are as follows-
“Activity-based costing” technique
It is a estimation technique which is used to identify the activities in an organisation
and assigns the cost of each event to sell the products and services according to the several
ingestion by each of the products, hence these process had assigned the indirect damages into
direct cost and had compared the direct prices with the overhead costing or conventional
costing. For example to create a product, the expected total utility bill is $20000. Hence to
manufacture this product a total of 1000 hours of labour charge is estimated in this case. Thus

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to drive the utility, the overhead rate is expected to be $20. Therefore the predicted change is
calculated at three times of the total utility, which is $60 (Ajibolade 2013).
Just in time technique
It is an inventory management technique whereby the materials, goods and labours
are scheduled to be arriving and to be replenished when needed to the production process. For
example in case of Toyota the company assembles the car chassis, and the windshields are
put on Thursdays. Hence the parts are supplied at the time of need.
Balance scorecard method
It is a visual tool which is used to describe the measurement and effectiveness of the
activity against the strategic plans of the company. This process is used in doing the strategic
planning and to implement the effort with individual vision and mission. For example-
Relevancy of the “modern management system”
The prominence of the modern management system in accounting had emerged in the
20th century with a promise to change over the original part of the process. Hence the
management is no longer seemingly ready to the cost accounting technique. The motivation
to the adaptation to this process of “cost accounting techniques” such as JIS, ABC, and TQM

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has become some of the accessible adopted technology in the management accounting
process concerning two wide-ranging categories such as planned or “long term” change and
operational or “short term” change. Hence a firm might look to accept those changes by
implementing of contemporary management accounting change technique. Thus there are
four key steps which had pertain some key factor of the management to determine the process
of adaptation. The following part of the procedure is related to the use of organisation
features which plans the types of “managerial accounting process”, and the administration
had decided to paramount the transactions. Thus there are specific implementation issues
relating to the process. In the third part of the process it follows and focuses on the particular
problems which could hinder the progress and look to backing the operation of the new
“management accounting system”. Thus the last fragment refers to the outcomes which relate
directly to the implementation results. The findings highlight the structures and benefits of
the efficient implementation process. Hence the study had focused over two parts of changing
process which was considered as very much critical to assess the relevance of a newly
developed “management accounting system”. Thus In spite of the differences between firms
the effective operation and exploitation of the “management accounting system” are normally
steady across all the organisations, and these are dominated by profits. Hence it additionally
triggers for an effective “management accounting” alteration which includes-
Growing exposures to worldwide race.
 A significant change trendy the management process (Sunarni 2013).
 Bench marking by the management companies to measure the company performance
between the entities and group.
 Thus this process is prevalent to the individual firms, but the decision making aspect
is going to be altogether effective from the course of action. Therefore the changes
and acceptance of a “contemporary management accounting system” are still not

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adequately measured to the process. Hence all to quickly the procedure is familiar
from the situation lessons have set the practical changes in describing the
“management accounting system”, nonetheless the same is not necessarily are
different. On the other hand by considering the tools of contemporary management
issues relating to the accounting tools of ABC technique could assist the organisations
in achieving some effective cost and management accounting process through
imputed casual relations and activity resources. For example in 2002 50% of fortune
500 companies have adopted the ABC measures and the rest of 18 per cent have
adopted standard implementation (Kokubu and Kitada, 2015).
Comparison and contrast
The above two articles have defined two different areas related to the usefulness of
the management accounting theory. The techniques have used different models related to the
organisational viewpoint. The congruence model had shown whether the arrangements are
related to the demand of the tasks. One major objective which the management looks to
implement In this case is the effective use of management accounting technique. The first
article had used the old management accounting theories and procedures. Hence the capital
information theory provided by the company could allow the managers to make a better
understanding of the relevant cost techniques and look to increase the overall production.
However the new and improved techniques provided by the companies will receive special
out of source orders. Thus these aspects helps the company in making effective decisions to
the company. On the other hand it can also be said that these new techniques help the
organisation in saving the money and improving the organisational values and cultures. In
this case it can also be said that the process could stream the value addition and the
management accounting system will be playing an effective role to the organisations to
mitigate the overall risk status and also meeting overall corporate objectives.

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Hence it can be found that the second journal article had mainly talked about the significant
changes to the business in the near future.
Conclusions related to the management accounting process over certain and uncertain
market conditions
The contemporary management accounting research techniques have examined here
is well regarded by the academicians and are appeared to be generally useful. The list of the
management techniques used by the management accounting operation available in this
context has a detrimental effect on the specific effective changes related to the aspect. It has
been seen that the first company have implemented a functionary system which had
encompassed many of the business functions that are said to be useful in this context. But in
real times the Information used by the users are only get provided. Hence by harnessing the
existing technology to provide the backbone for majority of the business is useful to
rationalise dispersive systems appeared to be mainly triggered. Thus the overall development
to the process is said to be looking to the challenges. As an extremely competitive worldwide
constructer, the “company A” had initially been probable to be fitting nearly to the pattern of
the accounting techniques. The process followed by the firms has focused over recent
management changes in the case study. The evidence had suggested that the organization had
not been copiously exploited by the “company A” in combination of the level of organization
assertion. Here the process is very much active, and it triggers the scope of further
implementation. Hence the process is very much useful to the context, and the overall
“management accounting” process is said to be holding some relevance over the aspect but
not at the strategic level. On the other hand other types of significant research have been
conducted where “company A” is looking to roll back the installed management accounting
system by planning some sufficient spaces at the time of interview conduction. Hence these

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systems are very much deterministic for the company managers to expand the business and
market capabilities as a whole.
On the other hand it is also expected that the KPI process since being used by the
companies so widely, therefore these precise recessions which will uptake will be remained
as unclear and not higher. Hence the perceived usefulness to the process as well as the
analysing ability will be resulting over to implement more effective skill and membership
capabilities to the process. Therefore it is expected that those changes will be able to perceive
excellence and consequently the resultant outcome to the process will be very much result
oriented as a whole (Padovani et al.2014).
While the firm is very much significant concerning the scope and location of its
chosen arena of the business, it is a single firm. Hence one curb of this process is that the
overall study offers only a thin choice of material and the same may be illustrative of the
larger business consumption of the “management accounting system” or data. Thus instead of
the given facts the lone situation study is beneficial for the research methodology. The overall
operation and the following operation of the whole “management system” of the
multinational accounting firm provide particular perseverance related to the primary industry
perspectives of the relevant accounting. Thus after the data amendment the researcher is best
placed to offer certain inferences to what extent the changes are subjected to be implied.
On the other hand the process had modified those models based on the empirical
research process and solutions will be serving those practitioners of management accounting
techniques. Therefore overall the changes are seen as appropriate strategy creation for
implementing an effective management accounting system. Hence it could help to make
further research objectives.

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Lessons learned from the management accounting process
Therefore both the articles have provided an overall in-depth knowledge of the
“management accounting system” related to the company rules and regulations. However in
all it is analysed that the studies had demonstrated the versatility of research conduction. The
process had conducted an overall study towards contribution to management such as
“engineering management”, “quality management” or “general management” process as a
whole. Therefore many lessons which are related to the articles related to the company
management accounting are as follows-
General issues
An intervention is associated with the building of the research setting and building
effective research question paper. On the other hand the research interventionist had used
specific research process for providing the researcher with the means to create real and
impactful relationships had used the process in the accounting period. The research should
not see as a style for collecting the overall impactful figures but for the vehicle for creating
bearable relations between the academia and different industries.
Research design issues
The ideas related to the interventions process to be utilised in generating accurate
access and acceptable within the host organisations. On the other hand the Officious work
may be one rarely available research process for studying issues which are related to
extensively adaptive real-life procedures. The primary research methodology associated with
the specific toolbox named as methodological toolbox should base on the researcher
capabilities into the process occurring such research life cycle (Gibassier and Schaltegger
2015).

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From the second article the data have been gathered for the process of mechanism for
opening the black box of organising the organisational activities as well as having sufficient
rigour for avoiding the problems connected to the operation of reconciliation or hiding
specific erratic behaviour. Hence the overall act of innovation is going to be useful for the
procedure. On the other hand the interventionist research process could be related to the
number of risks of potential disadvantages as to be concluded based on experience.
The extensive market research process is related to the specific academic outcome,
and the same process deals with the possible risk factors of those projects related to six years
and are likely to be added back on the publication of the result over the last venture phrase.
The unbalanced emphasis of the particular relevant issues and the managers are very skilful
to implement those effective process. Thus the research analysis will allow the required
theoretical contribution of the task they verify to follow. Hence it can be said that the two
articles which have been collected to imply the effectiveness of the management accounting
procedure of the company have been beneficial to this aspect to set an overall long term goal
or process
Conclusion
Thus from the above statement, it is to be said that the tools and techniques of the
“management accounting process” are a useful and appropriate process. Hence the
management accounting process will play effective rules and regulations related to the
structure of the contemporary organisations. On the other hand the conclusions which are
related to the management accounting system ensures challenges and competitiveness for the
overall business environment process. Lastly the primary outcomes or lessons which are
related with the necessary procedures of “management accounting techniques” had also been
addressed.