Understanding Of Management Accounting
According to the Chartered Institute of Management
Accountants (CIMA), that according to management accounting is the process of
identification, measurement, accumulation, analysis, preparation,
interpretation, and communication of information used by management to plan,
evaluate and control within an entity to ensure and accountability preparation
of resources the power.
Meanwhile, The
American Institute of Certified Public Accountants (AICPA) states that
management accounting as ulcerative extends in three areas as follows
- Strategic Management. Management accounting has a role that served as a strategic partner in the organization
- Performance Management. Accounting management has development practices in making business decisions and manage performance within the organization
- Risk management. Accounting management has contributed in making the framework and raktik to identify, measure, manage and report risks to achieve organizational goals.
According to Halim and Supomo (2000: 3) states that
management accounting is A activities (processes) that generate financial
information for management to economic decision making in executing management
functions.
Meanwhile, according to Mulyadi (2001: 2) states
that the definition of management accounting is the financial information which
is the output generated by the type of management accounting, which is used
mainly by internal users of the organization.
Destination
Management Accounting For Type of Information
Management accounting information systems are not
bound by any formal criteria that define the nature of the process, input, or
output so that the criteria are flexible and are based on management's
objectives. Managerial accounting system has three broad objectives: (Hansen, 2009:
4)
- Providing information for the calculation of the cost of services, products, or other objects that are determined by management. Therefore, the implementation of the provision of information to calculations by the management fee is used to evaluate the accuracy of decisions designed to improve productivity, lower costs, expand market share and increase profits
- Provides information for planning, control, evaluation, and continuous improvement. Therefore, the information needed to identify opportunities for improvement and evaluate the progress made in implementing the various actions designed to create improvements.
- Provide information for decision making. Therefore, the importance of decision-making by selecting or some strategy makes the most sense in giving a guarantee of growth and long-term viability for the company.
Relationships
with Financial Accounting Management Accounting and Cost Accounting
According to Mulyadi
(2001: 8) management accounting and financial accounting, closely related to
one another, namely:
The first, generally
acceptable accounting principles in financial accounting is likely also a
relevant measurement principle in management accounting. For example, financial
accounting the principle of matching revenues and expenses are concerned with
income in calculating the profits from the company within a certain period.
Similarly, management
accounting adheres to the same principles in measuring profits terentu profit
center managers to measure the performance of the relevant profit center.
Second, financial
accounting and management accounting information using the same operation as
raw material to produce the information presented to the user. Therefore, in
the processing of financial information used guideline that generally
acceptable accounting principles used as a reference in collecting baseline
data in order to produce information that will be processed through financial
accounting and management accounting. If this is not done, there will be
duplication in data collection activities.
The basic difference
between management accounting and financial accounting according to Halim and
Supomo (2005: 11):
- User Information: financial accounting serves mainly financial information for external parties (creditors, governments, investors, trade unions, etc.), while accounting management, especially for management (internal side) of the company.
- Basis of Presentation of Information: The information is presented based on accounting principles generally accepted accounting principles, while the presentation of accounting information management is not bound by the principles of generally accepted accounting. Management accounting is no underlying, in the sense that no other parties that govern how the management accounting information should be presented. For management accounting is more important are the benefits of the information, not a matter of compliance with accounting principles.
- Focus Information: financial accounting information describing the position and the financial capacity of the company as a whole as a unified business unit, while accounting management about providing financial information of the parts within the company.
