Managerial Accounting in Competitive Market Report

This report provides a comprehensive overview of managerial accounting, exploring various methods such as Just in Time (JIT), Total Quality Management (TQM), and Balanced Scorecard (BSC). It delves into the crucial role of managerial accounting systems within competitive markets and uncertain business environments, emphasizing the importance of adapting to new technologies and enhancing customer value. The report highlights how these systems contribute to improved efficiencies and aid in making informed decisions. Furthermore, it examines learning outcomes based on research findings, offering valuable insights for Australian management accountants. The analysis covers the implementation of accounting schemes, the use of financial and non-financial data for strategic planning, and the significance of adapting to new technologies to maintain a dynamic business environment. The report also discusses the importance of organizational structures and accounting systems, as well as the impact of these systems on employee capabilities and the achievement of defined goals. It addresses the challenges of implementing activity-based costing schemes and emphasizes the need for computer-based accounting systems to enhance financial data analysis and overall business performance.

Managerial
Accounting
Table of Contents

INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
1. Various types of management accounting methods................................................................2
3. Role of management accounting system in competitive market and uncertain business
environment.................................................................................................................................4
4. Learning outcomes based on research findings which will be helpful for Australian
management accountants............................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Managerial accounting refers to the process of collecting, examining, interpreting,
analysing and spreading the information to their stakeholders in order to take better decisions. It
is the type of accounting which is different from financial accounting as it is associated with the
managers which assist in taking better decisions for the attainment of organisational goals and
objectives. It has been identified that financial accounting provide various benefits to both
internal as well as external stakeholders (Fellows and Liu, 2017). In the present report, various
topics are going to be discussed which includes various kinds of management accounting
methods. All these methods assist managers of the company in order to take better decisions
which leads to the attainment of organisational goals and objectives. These methods includes just
in time, balanced scoreboard, total quality management which are explained in detail. In addition
to this, role of management accounting system are discussed in the present report, which assist in
enhancing efficiency of employees.
MAIN BODY
1. Various types of management accounting methods.
Management accounting also known as managerial accounting which is defined as an
accounting field associated with the development and preparation of reports with the assistance
of both financial as well as non financial information. It is the accounting method which is
beneficial for the internal stakeholders as given or collected information and data assist the
managers in order to take effective decisions so that they can produce positive outcome. Apart
from this, it will assist in developing strategies so that they can perform their task within
stipulated time frame (VANDAMME, 2019). In general it is a method which is based on various
types of accounting methods. It is the method which includes various techniques such as Just in
time, Total quality management, balance scorecard. Herein the present report, various accounting
methods are going to be used by the multinational company are as follows:
Just in time (JIT): It refers to an inventory strategy which assist the managers of
organisation in order to receive raw material according to the requirements of production
department. With the help of this approach, management team of the company will be able to
reduce additional cost which leads to enhancement of revenue of the company. It has been
identified that managers of MAS need to order goods and raw material according to their

requirement along with the need and demand of production department. It is the method which
which assist in reducing operational cost by which they can generate more and more revenue so
that they can gain various competitive advantages at the marketplace. In the present context of
multinational manufacturing organisation, it is one of the most difficult and crucial technique of
management accounting. It is the method where managers buy raw material as per the need and
requirement of organisation. But on the other hand, if this technique is not used by the managers
of business entity, it will directly affect the overall cost of the company. It will become difficult
for the management team in order to manage operating cost.
Total Quality Management (TQM) :This is the management accounting tools that is
defined as improvisation the quality of the business operation and activities at standard level.
This tools is all about the output of the business concern that is extracted from the business unit
as per the industrial standard and regulation. This is the primary function of the business unit that
maintain the quality in the processing unit of the business. This is based on the material quality
or prime choices of inputs to maintain the same quality in the output with no loss of the quantity.
In the context to particular scenario, company needs to address the issue related the quality
management by the implementation of the T Q M process in the business to eliminate the error
and waste. In also includes the waste management in the company to control the business
activities and operation by handling the quality of the material. These error and mismanagement
in the processing unit are commonly founded in the manufacturing process of the unit. This
management techniques strengthen the manufacturing process of the business by improving Job
culture, employee engagement, facilitate the qualitative work, structure etc. in order to enhance
the standard of the business process. Whereas, in the absentism of this techniques of the
operation, it is really hard to survive the business in the long term at worldwide by the
multinational company. It is essential to maintain the level of the quality and business standard to
perform well in the future at global level. As a outcome of this particular process of it hold the
level of quantity and raise employee safety and the overall customer experience that creates
competitive edge for the business within an ever-evolving environment.
Balance score card (BSC) : This is the accounting techniques that is defined as
measuring the performance of the business operation and activities of the business organisation.
It is strategic-level tool that is provided in structured formate to the business management to
keep the track record of execution of the business operation and activities on the staff members

of the business. It also control and monitor the effect or outcome arouse from the these action.
This is strategic roadmap to the business which help to management in established the cause and
effects gumption. This system connects the relation between the organisational picture to its
vision, mission and goal. It communicates the business objectives to the member of the business
that needs to accomplish with their efforts. These are the operational activities or day to day
work of the processing unit that needs to handle as per the strategy of the business. It covers the
different projects, product and services efficiency in the business process. In the relevance of the
multinational company, this process of manufacturing unit can impact the business objectives in
order to performing the better function in long run business. These techniques may help in
performing the business task activities to be executed in an effective manner. This can become
completable only by this method.
3. Role of management accounting system in competitive market and uncertain business
environment
Management accounting acts as an one of the most important and crucial element in the
context of uncertainty of business environment and competitive market (Chakravorty and
Chaturvedi, 2015). As each and every accounting system hold its separate set of functions as
well as feature that are useful for an organisation in different aspects. Specially at global context
management accounting system plays an essential role as it effectively operates activities all
across the border. It has been further identified that management accounting system is essential
for all form of companies and these are further essential to operate these accounting systems in
best effective manner. Mentioned there are some management accounting systems in context
with organisation which is elaborated below:
Electronic business-
In this modern technological world it is essential for organisations to effectively adopt
new range of technologies as to gain more competitive advantages. As with the help of electronic
medium organisations can effectively able to perform their operations. Most of the companies
take advantage of management accounting system with the assistance of computer based system.
In addition with this, there are some certain software such as, ERP (Enterprise resource planning)
etc. with the help of which business organisations can effectively able to perform their activities
at global level with the help of electronic medium. Along with this, management accounting
system effectively aid towards more competitive advancements as with the help of

implementation of new techniques organisation can effectively able to overcome uncertain
environment.
Enhancement of customer's value-
One of the most prominent role that has been hold by management accounting system is
that it effectively aid towards improving customer value. As with the help of numerous form of
accounting system organisations can effectively able to make improvement in their quality of
products and services (Adebambo and Yan, 2017). In addition with this, it has been identified
that accounting systems further aid an advantage of tackling of availability of raw material such
as just-in-time methodology. With the help of these accounting system roles organisation can
improve satisfaction level of customers in best effective manner. Thus, with the help of this
company can further lead towards gaining more competitive advancements as compared to
rivals.
Improves in efficiencies-
It has been identified that management accounting system acts as an most essential
element with the help of which organisations can effectively able to increase their efficiency in
best effective manner. This is so because various kind of accounting systems like price
optimisation system, inventory management system etc. lead to managing all business activities
in an effective manner (Pizzutilo and Roncone, 2017). Apart from it, these accounting systems
also lead to compilation of business activities on time and in cost effective manner. All these
importance of management accounting systems help in sustaining in competitive and uncertain
business environment.
Thus, mentioned below these are some management accounting system with the help of
which organisations can effectively able to increase their work efficiency that further lead
towards satisfying customer in best effective manner.
4. Learning outcomes based on research findings which will be helpful for Australian
management accountants
The above first case report is related with implementing different types of management
accounting schemes efficiently. All such financial reporting structures are gradually connected to
the collection and evaluation of all economic and non-financial data that will lead to make to
better decision and the formation of strategies. Managers are needed to produce futuristic
policies and plans that will support to make more profit. In Company A, the managers

implemented different types of systems to enhance the financial outcomes to reach the pre
determined targets. It is not possible to overlook the importance of external variables throughout
this aspect because these variables are helpful when it comes to raising funds from different
types of stakeholder most of whom are interested in investing within business activities of
respective company. Ultimately, it is very much essential to implement management accounting
systems within a multinational production firm that will help to enhance the quality of goods and
services. This would also benefit to maintain a respectful image at worldwide level so that
customer could gain the advantages of best product. Besides this, an Australian-based business is
needed to produce a kind of organizational structure wherein different types of accounting
systems could be applied which maintain stability and authenticity within management reports.
The function of such accounting systems is useful not just for organizational adjustment, as well
as for all those individuals working in company. This is because of this application, employee
abilities and capacities could be necessarily enhance that will directly support in the achievement
of the defined goals in specific time frame.
Whereas this could be indicated from the second study that the application of new and
intelligent techniques according to business nature together with management accounting
systems is critically important for companies to gain profitability. Therefore, associating with
advanced techniques and accounting systems is regarded to be critical for company that aid in
maintaining a dynamic company environment. However, there are different types of enterprises
which does not accommodate their activities according to new technology. For example in the S
Ltd they have main issues related with implementing of activity-based costing scheme. In
addition, the business also faces the issue of absence of analysed financial data because of bad
accounting systems or old management techniques used for bookkeeping (Reynolds, 2017). The
method of recording financial transaction is also not effective because the above-mentioned
business do not use computer-based accounting system. Employees working in the company
have insufficient knowledge about annual reports and they are not able to keep valid records of
every financial activity. This is crucial for S limited to efficiently applying management
accounting systems and providing executives with critical data in order to make choices. That
will completely change the accounting patter and manager would have better data to make better
future plans and strategies for gaining profitability.

CONCLUSION
Form the above report, it has been indicated that management accounting system have
number of crucial roles to play within business firm as it provide valuable financial information
to internal managers. It main function is related to maintaining systematic and valid internal
report for manager to make authentic decision for making improvement and future growth. The
respective journals are depended upon implementation of authentic management accounting
system that benefits to reach desired targets. These system gives essential framework that
support in improving manufacture level and increasing profit margin and most important
enhancing the skills and ability of workers. Likewise, Just in time technique contributes to
efficient material buying choice and total quality management strategy is helpful in improving
product and service quality.

REFERENCES
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