MANAGERIAL ACCOUNTING
Group 6
Siska Dili Lorenza (1410531020)
Rozi Wulandari (1410532068)
Wandra aferian (1410532050)
BASIC MANAGEMENT ACCOUNTING CONSEPT I
The management accounting informationsystem providesinformation
needed to satisfy spesific management objective.
The management accounting information system is not bound by any
formal criteria that define the nature of the procesess, input, or outputs. The
criteria flexsible and based on management objective
The managerial accounting system has three broad objectives :
1. To provide information for costing out services, products, and other objects
of interest to management.
2. To provide information for planning, controlling, evaluating, and continuous
improvement.
3. To provide information for decision making.Management Accounting
Information System
Cost Expenditures that gives the current and future benefits.
Example 1: purchasing raw materials
cost => raw material inventory (will be used to produce finished goods)
future benefit => revenue from selling the finished goods (raw material is part
of productcost)
Target User
• Management accounting focuses on providing information for internal
users.
• Financial accounting focuses on provided information for external users.
The management process is define by the following activities
1. Planning
2. Controlling
3. Decision making
The management proccess describe the function carried out by managers
empowwered workers.
Types for informasion
• For management accounting, the financial or nonfinancial information
may be much more subjective in nature.
Time orientation
Financial accounting records and reports events that have already happened
Degree of greggation
• Management accounting provides measures and internal reports used the
evaluate performance of entities, product lines, departments, and
managers
• Financial accounting focuses on overall firm performance.
Management accounting
• 1. Internally focused
• 2. No mandatory rules
• 3. Financial and nonfinancial informa-tion; subjective information
possible
• 4. Emphasis on the future
• 5. Internal evaluation and decisions based on very detail information
Financial accounting
• 1. Externally focused
• 2. Must follow externally imposed rules
• 3. Objective financial information
• 4. Historical orientation
• 5. Information about the firm as a whole
Historical of description the managemen accounting
1880 - 1925 Most of the product-costing and internal accounting
procedures used in this century were developed
1925 Emphasis of inventory costing for external reporting
1950s/60s Effort to improve the managerial usefulness of traditional cost
systems
1980s/90s Significant efforts have been made to radically change the
nature and practice of management accounting
Current focus of management accounting
Activity-Based Management
Activity-based management is a system wide, integrated approach that
focuses management’s attention on activities with the objective of
improving customer value and the resulting profit.
Customer orientation
Customer value is the difference between what the customer receives
(customer satisfaction) and what the customer gives up (customer
sacrifice).
Strategic positioning
Strategic cost management is the use of cost data to develop and identify
superior strategies that will produce a sustainable competitive advantage.
Strategic : Cost leadership
Superior products through differentiation
Managing the value chain means that a management accountant must
understand many functions of the business, from manufacturing to marketing.
This emphasis on quality has created a demand for management accounting
systems that provide financial and nonfinancial information about quality.
The role of management accountant
In the organization, management accountant is in the staff position, that is,
position that is supportive in nature and has only indirect responsibility for an
organization’s basic objectives. Line positions (production & marketing
manager) are the positions that have direct responsibility for the basic objectives
of organizationThe role of management accountant is to assist the individuals
who responsible for carrying out an organization’s basic objectives.
Profesional
CMA: One of the main purposes of the CMA was to establish management
accounting as a recognized, professional discipline, separate from the profession
of public accounting.CPA: The responsibility of a CPA is to provide assurance
concerning the reliability of financial statements.CIA: The focus of the CIA is
to recognize competency in internal auditing rather than external auditing as
with the CPA.
THE CMA
Four areas emphasized on the exam:
Economics, finance, and managementFinancial accounting and
reportingManagement report, analysis, and behavioral issuesDecision analysis
and information systems
