Management Accounting
The definition of management accounting by Chartered Institute of Management Accountant (1994:30), namely: Unification of the management that includes, presentation and interpretation of information used for the formulation of strategy, planning and control activities, decision making, optimize resource utilization, disclosures to the owners and parties Outside, disclosure to workers, a security asset.
An integral part of management relating to the identification process for the presentation and interpretation / interpretation of the information that is useful for:
1. Formulating strategy.
2. The process of planning and control.
3. Decision making.
4. Optimization of the decision.
5. Disclosure to shareholders and outside parties.
6. Disclosure of organizational entities for the employee.
7. Protection of organizational assets.
Accounting Information System is a management information system that produces output (output) using the input (input) and the various processes needed to meet the specific objectives of management.
The process can be described through various activities such as collection, measurement, storage, analysis, reporting, and management of information. Output includes special reports, product cost, cost customers, budgets, performance reports, and personal communication.
Management accounting information systems are not bound by a formal criterion that explains the nature of input, process and output. Criteria are flexible
and based on management goals to be achieved.
The general objective of management accounting systems, among others:
1. Provide the information required in calculating the cost of services,
products, and any other desired destination management.
2. Provide information that is used in planning, controlling,
evaluation, and continuous improvement.
3. Providing information for decision making.
Management accounting information can help identify a problem,
solve problems, and evaluate performance. So, this information is needed and used in all phases of management, including planning, controlling, and decision making.
Management accounting information can be attributed to three things: the object information (products, departments, activities), alternatives to be selected, and the authority of managers. Therefore, this information is divided into three types of information, namely:
1. Management accounting information (Full Accounting Information).
2. Accounting information differential (Differential Accounting Information).
3. Responsibility accounting information (Responbility Accounting Information).
Related history, the most cost calculation procedures for the product (product costing) and management accounting used in the 20th century, developed between 1880 and 1924.
Previous developments (until 1914) emphasizes the calculation of product cost calculations at the managerial level of the search firm’s profit level to each product and use this information for strategic decision making.
Starting in 1925, after the development of capital markets in the USA, almost all business management accounting to generate information for internal users and then discontinued and replaced with the determination of inventory cost (inventory costing), which is the assignment of production costs to products such that the cost of inventory can reported to the external users of financial statements.
Management accounting process can be developed using various methods, among others:
* Flatening management structure is a process of simplification of the structure.
* Using a cross functional team is a mutual process contents according to skill and strength between the teams involved.
* Sharing information quickly and accurately represents the relevant information filtering techniques.
* Delegation of authority to the work force is a team strength development techniques through the provision of the trust.
Fundamental role of management accounting in public sector organizations is to assist the manager / leader with the accounting information necessary for planning and control functions can be performed.
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