Study On Management Accounting Report System Of Sunflower Company

With the development of economy and the advancement of technology, as well as the growing trend towards globalization and information of the market economy, companies are confronted with increasingly fierce competition. Companies used to try very hard to boost sales and market share, control production costs, develop new products, promote innovative business models and use different management tools to improve their operational efficiency and competitiveness. Meanwhile, ever-increasing research in the field of management brought forth many new theories and innovations, the management accounting theory is critical among these theories and approaches. As a branch of accounting, management accounting is one of the most important business languages. By applying its theory and approaches from the initial cost-control management and the late process management as well as the strategic management, it provides financial information and non-financial information for management teams through systems for prediction and decision-making, planning and control, evaluation and feeding back so as to help enterprises to improve efficiency and ensure the operation goals and furthermore, with its timeliness, pertinence and flexibility, it also helps overcome in the daily management process the existing weaknesses like inflexible rules, procedures and formats regulated by the applicable financial accounting standards. After one hundred years of both theoretical and practical research,a relatively mature accounting theory system has been developed and it played a very important role in enterprise management. However, as every company has its own contexts and characteristics and situations vary significantly from one company to another, a universal format of report system for management accounting hasn’t come into being due to the strong pertinence and flexibility of the management accounting.Targeting as a diversified and vertical development unit, The Sunflower Company is engaged primarily in the production of sunflower edible oil, and secondarily, in sunflower breeding and production of sunflower based by-products. Recently, with strong development potential and the support by several private equity funds, the company made massive investment in fixed assets with advanced automatic production equipments from abroad and expanded its production capacity. Currently for the marketing, as there are quite a lot competitors with famous product brands, it can only take a relatively low pricing for its products, meanwhile, it has a mega Interest-bearing liabilities due to massive investment in its production assets and automatic assembly lines, so it also has much pressure on its cost of capital. Therefore, the sunflowercompany needs to strengthen its management and improve operational efficiency. The Company needs also to increase its sales and market share and make good cost management, and improve asset turnover, as well as strengthening planning and control in the process of daily operations so as to ensure the completion of its targeting operation indexes. In order to solve these problems in a systematic manner, the authors designs and compiles a complete set of management accounting system which can help the company materialize in a step by step manner the strategic targets and provide reference for its performance evaluation.This paper is divided into three parts. The first part is the introduction, focusing on the significance and thought and method of this paper; The Second part is an specific review on the theory of management accounting and management accounting report system and the relevant practices, laying down theoretically the foundation for compiling the management accounting report; And finally, the third part, with a view of the sunflower company’s management requirements, introduces the sunflower company management accounting report structure and content. Taking the comprehensive budget management, accounts receivable management,inventory management, cost management and fund management as the main contents of financial information report and applying the balanced scorecard tool, this management accounting report gives the ways on how to improve the controlling and assessment of the non-financial indicators, and finally, provides supplementary analysis on the status of the company management operation by the financial index system and the relevant notes so as to further provide overall effective decision-making basis for the internal management.