Management Accounting Report Analysis: Prime Furniture Case Study

This report presents a comprehensive analysis of management accounting practices, focusing on a case study of Prime Furniture. It begins with an introduction to management accounting, differentiating it from financial accounting, and outlining the benefits of its implementation. The report details various management accounting systems, including cost accounting, price optimization, inventory management, and job costing, and explains their significance. It also covers the structure of management accounting reports, such as cost reports, stock reports, and accounts receivable reports, highlighting their role in decision-making. The presentation of financial information, emphasizing reliability and accuracy, is also discussed. Furthermore, the report explores the integration of management accounting systems and reports within Prime Furniture, illustrating how different departments utilize these tools. The conclusion underscores the importance of management accounting for internal business operations, as demonstrated through the case study.

MANAGEMENT
ACCOUNTING
TASK 1.

TABLE OF CONTENT
 Introduction
 Management accounting systems
 Difference between MA and FA
 Management accounting reports
 Benefits of management accounting systems
 Presentation of financial information
 Integration of MAS and MA reports
 Conclusion
 References

INTRODUCTION
Management accounting has been one of the accountability
practices in the financial industry. It can be defined as an
accounting information system wherein the accounting
department of the business firms creates management data in
order to assist management to make smarter decisions. A client
has been selected in the power point demonstration and is
concentrated in prime furniture. The business is based in east
London. The power point analysis contains detailed facts about
different forms of accounting schemes and reporting processes.

MANAGEMENT ACCOUNTING
SYSTEMS
These MA systems can be described as an accounting
mechanism through which a business's theoretical and
practical information is structurally collected to generate
internal reports. This requires various forms of accounting
systems, that are discussed underneath:
 Cost accounting system
 Price optimization system
 Inventory management system
 Job costing system

DIFFERENCE BETWEEN MA
AND FA
Basis Management
accounting
Financial accounting
Essential For businesses
to implement this accounting
isn't really necessary.
It is important to perform any business
company use to implement this
accounting.
Outcome It generates internal reports
for management decision.
It helps to prepare valuable financial
statements as per the standards.
Information The information which
is included in MA is both
financially and non-
financially.
While this reporting accounting process
only includes financial details.
Format Reporting is generated in
any way without any template
which is easy for the manager
to make analysis.
It is important to apply a specific format
for reliability of reports.

MANAGEMENT ACCOUNTING
REPORTING
It can be understood that MA reports consist of systematic
information on monetary and anti-monetary segments. Such
reported results is commonly used by corporate managers to
take appropriate correct action in due time. Their accountant
designs the following reports in the above mentioned business
unit Prime furniture limited:
 Cost report
 Stock report
 Accounts receivable report

BENEFITS OF MANAGEMENT
ACCOUNTING SYSTEMS
 Cost accounting system- It is associated with the dimension of
managing total costs for various operations through the
assessment of correct variance scales
 Price optimization system- This is beneficial for firms to fix
the product price in accordance with the current industry trend
 Inventory management system- This accounting system
accurately measure the worth of the allocated stock
 Job costing system- It is helpful to businesses to quantify the
cost of increasing product produced.

PRESENTATION OF
FINANCIAL INFORMATION
This is important for companies which have the following financial
records:
 Reliable
 Currently
 Absolutely true
It is crucial that organizations maintain relevant financial statements
so even though managers take key decisions about the future. If
financial data is not reliable, companies may struggle to take
additional actions which could lead to various types of problems.

INTEGRATION OF MAS AND
MA REPORTS
Many accounting reports and systems are consistent with
company policy and activities in the MA. As described above,
their various sections are linked to the department 's crucial
context in Prime Ltd company. A price optimization program
is used by the sales team to promote profits. MA reports,
similar to accounts systems, also contribute to the business
operations. For example, the inventory report in the above-
mentioned company is linked to the manufacturing team to
take manufacturing appropriate action.

CONCLUSION
In the above presentation of the power point, this can be found
that management accounting is too important for companies
to maintain various aspects internally. The power point
presentation allows for alignment of different departments
with accounting systems and reports.

REFERENCES
Ward, K., 2012. Strategic management accounting. Routledge.
Wickramasinghe, D. and Alawattage, C., 2012. Management
accounting change: approaches and perspectives.
Routledge