Management Accounting Management Accounting System

Question: Describe about the Management Accounting for Management Accounting System. Answer: The present cost and management accounting system needs to identify the various cost drivers for factors supporting the sustainability initiatives. The various types of management accounting system should support the functions related to operational control, strategic control, management control, product and customer costing of AMCOR. The operational costing should include the financial focus which is directly associated with the tracking of recycled materials and re-closable packaging concepts. The financial emphasis is also given on the environmental related financial management, which is responsible for tracking and analysis of flows of energy and the use of monetized information for the benefit of corporate environment and economic performance of the company (Mfe.govt.nz. 2016). The lifecycle cost assessment shows the accounting of the reduction in the supply chain activities for the consequences leading to the assigning of the monetary values to the impacts. The environmental accounting is based on identifying all the environmental consequences of the projects activities. The conventional costs are also considered for the overall decision-making. This concept should be in line with the bookkeeping and management accounting system followed at AMCOR (Lukic 2013). The current cost management relevant to production cost and sustainability is shown below as follows Sustainability relevance Costs Activities Economic Environment Social Institutional Transportation cost Optimizing loading process of the recycled containers Optimizing packaging x x x x Material inputs Breakdown of Recycling cost of materials such as paper, plastic, metal, glass and organic substance x x x x Labor Cost Labor employed for performing the different recycling activities x x x x Reference List Lukic, R., 2013. Sustainable cost management in retail. Revista de Management Comparat International, 14(2), p.268. Mfe.govt.nz. (2016). [online] Available at: https://www.mfe.govt.nz/sites/default/files/recycling-cost-benefit-analysis-apr07.pdf [Accessed 11 Aug. 2016].