Managerial Accounting And The Basics Of Management Accounting System

MANAGEMENT ACCOUNTING

Table of Contents

No table of contents entries found. Introduction

Undoubtedly Management Accounting is a great tool for any kind of Business Organization. It helps to make management reports and accounts that provide financial and statistical information to managers that helps them to take decisions. It basically helps to evaluate the performance of a business organization. In this assignment we are going to discuss management accounting and the branches of management accounting systems. The methods of management accounting reporting will be broadly discussed and also interpreting the given data of Dell to prepare basic financial reports and forecasting budgets in the context of Dell. Dell is an American multinational

Basic types of Management accounting systems are:

Cost Accounting system: Cost accounting is a compilation of methods for evaluating the costs of products, processes and projects, in order to report the accurate costs and expense amounts in the financial statements while supplementing the management exclusive information to take decisions.

Inventory Management Systems: The procedure to overlook and control the orders, storage and use of parts that a company uses in the manufacturing process of the product it sells or in the case of merchandising company the product it purchases, holds in inventory and the products that it sells off, is called inventory management system. It is basically a method of supervision and control over the inventory of an organization.

Job Costing: An order specific estimation procedure to determine the basic operational costs of the organization in such cases where each job is different and is executed according to the customers’