Essay The Contemporary and Conventional Accounting Report Writing – Management Assignment Help

Assignment Task:

Task:

1. The management accounting techniques applied in Company A as identified from journal provided
In the contemporary and conventional accounting, the management applies various techniques to fulfil their accounting requirements. Each of the technique used is of different relevance to the management and at times, some techniques also prove to be irrelevant. The various management accounting techniques as identified from the case of Company A are as follows:

•  Activity based Costing (ABC): this management accounting technique is mainly related to cost accounting field of business. Through this costing method, the management allocates the total cost incurred in the business on the basis of activity drivers into different departments. For each cost, separate cost drivers are identified by management. Based on the identified cost driver and the quantum of activity consumed by each department, the management allocates cost to each department (Dale, and Plunkett, 2017).

In Case of Company A, the newly identified management accounting system SAP R/3 has several cost accounting techniques including ABC technique. However, the company being a manufacturer with simple processes and procedures, the application of ABC appeared complicated and hence considered irrelevant for business.

•  Performance management system: this technique helps to analyse the reasons behind performance variances and try to track the reasons for them. Based on the identified reasons, steps are taken for improvement of performance and bridging performance gaps.

This is done by setting benchmark level of performance, often called performance indicators (de Lancer Julnes, 2017).

For Company A, the performance management system is an effectively relevant tool for performance analysis of operational and tactical group of management. Key Performance indicators (KPIs) are developed by organisation for every group of task these managers are accountable for. The performance of managers is compared with KPIs to identify differences and reasons lying behind.

•  Management Information System (MIS): management working at any level have specific information requirements based upon the roles expected to be delivered by them. The information required has to be sourced from different sources, some of which may lie internally in the organisation, or some stay external. Contemporary organisations are observed to implement Management Information Systems to do away with their information requirements with reliable sources (Laudon, and Laudon, 2016). in Company A, the newly installed MAS SAP R/3 acts as the Management Information System. However, the focus of the system installed by the organisation is mainly on the internally available information and hence provides the management with that only. Resultant, the strategic management finds this MIS irrelevant hence.

2. Comment on the relevancy of MAS for contemporary organisations
i. Evidence from the case of Company A: whether MAS is relevant or not To comment whether MAS had been relevant to Company A or not, it is important to analyse the case provided in journal. Company A is operating as a manufacturing company.