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