Management Accounting Case Study

Management accounting systems
Case Analysis: HSBC Bank

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Executive Summary

Management accounting over the years has really emerged very significantly in the field of banking and finance. There are numerous objectives and significance that has been reflected in numerous literatures mentioning the primary strategic and management significance management accounting has brought to the table in the field of international finance. As mentioned by many academic and financial scholars, management accounting has today emerged as the most important financial tool which helps them attain a strong position in the market by making sound and strong strategic decisions.
This report would look into the theoretical concept of Management accounting, with a special mention of the relevance of management accounting in the banking sector with case study approach for HSBC bank.

Table of Contents
Executive Summary
1. Exploring the concept of Management Accounting 3 1.1 Comparing Management accounting with Financial Accounting 5 1.2 Exploring the role of management accounting in an organisation 6 1.3 Key techniques employed in management accounting 6
2. Management Accounting in Banking Sector- HSBC case analysis 8 2.1 Management accounting and Banking 9 2.2 HSBC a brief introduction 9 2.3 Recommendations to HSBC 9
3. Strength and weakness 10
4. References 11
5. Appendix 13 5.1 Inventory management 13 5.2 Budgeting 13 5.3 Cost-Volume-Profit (CVP) analysis 14 5.4 Activity Based Costing 15 5.5 Enterprise Cost Management (ECM) 16

1. Exploring the concept of Management Accounting

As defined by Atkinson et al, (1997) Management Accounting may be defined and identified as strategically sound financial measurement process which involves the process of identification, measurement, reporting and carrying out analysis of information that have economic significance for an organisation, further to this

References: * Atkinson et al. (1997) New Directions in Management Accounting Research, Journal of Management Accounting Research, 9, p. 79-108 * Johnson, H * Jermias, J. & Gani, L. (2000) Integrating business strategy, organizational configurations and management accounting systems with business unit effectiveness: A fitness landscape approach. Management Accounting Research, 15, 179-200. * Pizzini, M. J. (2006). The relation between cost systems design, managers’ evaluations of the relevance and usefulness of cost data and financial performance: An empirical study of US hospitals. Accounting, Organizations and Society, 31, 179-210. * Reid, G. C. & Smith, J. A. (2000); the impact of contingencies on management accounting system development Management Accounting Research, 11, 427-450 * Zimmerman, J