Management accounting system Essay Example | Topics and Well Written Essays - 750 words

Management accounting frame - bear witness ExampleA hail management system for Skytop would fork over information to make life easier for in all involved.Cost accounting system will assign speak tos (costing) to specific crossroads (meals, room per night, gaming machine round, etc.) and work (cleaning, room service, meal preparation, etc.) and other cost objects as identified by management. This in-turn will satisfy the monetary reporting requirements then management decision-making essentials. For example the General Manager gets to know the essential cost of a room to make the pricing decision the HR Manager is informed of the actual cost of to each one staff (salary, benefits, etc.) for HR related decisions the Marketing Manager would be sufficient to find out actual profit (r in timeue from the consort minus the actual cost of the campaign) generated by a specific marketing campaign the respected owners will be informed of the actual cost of keeping a hotel and would be open to make related decisions.Operational control system on the other hand will provide accurate and whilely feedback concerning performance the activities that should be performed and evaluation of those activities (controlling). Furthermore it concentrates on finding scope for rise and aids in the planning process. In other words helps planning realistic budgets (uses information from cost accounting system as well) and accordingly enables performance control. For instant all managers will be able to compare budgeted costs to actual costs, understand the difference and thereby use the information to find core of improvement e.g. cost cutting, hire new staff, changing the menu policy, etc. The owners too can occupy performance evaluations of the management, measure actual return on investment and assess hotels growth in financial and non-financial terms. b) Type of information required For efficient function of the system the management will be required to gather variety of information both financial and non-financial. The sources of this information could be from both natural (within the company) and external sources (external environment for comparison purposes). The internal information from within the company which are financial much(prenominal) as cash flows, labor charges, material costs etc Also non-financial information such as time records (labor hours, meal preparation time), stock levels, quality measures, customer feedback ratings, etc. The external information from the environment would typically include global competition, growth of the hotel industry, advances in information technology, advances in the food preparation, customer orientations, new product development, total quality management, time as a competitive element, and efficiency. Depending on the budgetary control system and the reporting system that is used these information would be required regularly on daily, weekly, monthly and even yearly basis. c) Key cost drivers A cost driver is an activity or factor that originates costs. bodily function based costing which is considered to be the most realistic and accurate method of costing requires identification of cost drivers. Thus, Number of rooms night and number of stays is two of the key cost drivers that are wide used in the hotel industry (Pavlatos & Paggios,