Chapter 1

1.1 Background To operate a complex organization ( large and complex ) with the efficient and effective management requires detailed information about the company's operations . Such as how much material should be provided , where the material was obtained , how many devices are in use , how many eligible employees employed etc. . All these issues will be addressed by management if the right management information to be used as a basis for policy . This means that management must obtain information about the input and output operations or company for basic operations . Without information about the input and output , then the management might not be able to take the right decision . To address this need adequate information systems . That is the information system for planning , management , control and decision making . System information related to accounting or finance is the task and responsibility of management accountants , and information systems relating to the accounting called the Accounting Management . ( Machfoedz , Mas'ud , Management Accounting , 2002)

Chapter 2 discussion

2.1 The concept behind the birth of Management Accounting a. Management accounting history In the 1880s , American manufacturing company began to concentrate on the development of largecapacity production technology . The managers and engineers at the company have developed to calculate metal relevant product called scientific management costs . This procedure is used to analyze the productivity and profits of a product . However, as the development of accounting thought so after the procedure in 1914 began to disappear from the company's accounting practices . After World War I , there are financial accounting rules that have reduced the impact of accounting information useful for evaluating the performance of subordinates in large companies ( lost relevance ) . Until 1920 , all managers believe the information related to primary production processes , transactions and events which resulted in a nominal amount in the financial statements . After 1925, the information used by managers to be more simple and a lot of manufacturing companies in the U.S. have developed a management accounting procedures as it is known today . Over a period of more than sixty years , accounting academics are trying to restore the relevance of accounting information rooming with financial accounting information . The business uses a simple model of a manufacturing company , similar to the textile companies of the 19th century , and in order to overcome the problem of production , academics boarding reorder inventory reporting information . Nevertheless , the model is too simple to explain the real problems faced by managers but it dimahfumkan in order to facilitate boarding of how information derived from the financial statements can be made relevant to decision making ( boarding management ) .

b . Definition of Management Accounting A type of quantitative information using money as a unit of measure , which is used to assist management in the implementation of the management company or financial information is the output generated by the type of management accounting is used by internal users of the organization .

2.2 Role in Organization and Management Accounting Information for Managers role . Organization and goal Organization can be defined as a group of people united together for some common purpose . The purpose with the direct labor organization called the organization's objectives . Not all organizations have the same goals , but most organizations have a goal to make a profit . ( Ray , H , Garrinson , DBA , Management Accounting 1987) In addition to targeted to benefit from the funds that have been invested in the company , organization / company also has another goal which is to acquire and maintain a reputation for integrity , fair , and credible . The company also wants to be a positive force in the social and ecological environment where the company activities . Management Accounting as an Information Type Management accounting is seen as a type of accounting is a process to process financial information to meet the needs of managers in planning and controlling activities of the organization . Information is the data , facts , observations , perceptions , or something else that adds to knowledge . ( www.google.com ) Another definition says information is data that has been processed , or in other words the processed data used for decision making . This information is different from the news or issue . Obtaining information from various sources can be either external or internal

Characteristics of quality information : 1 . Timely : Information should be timely because the information comes too late when the information is no longer useful . Timeliness is indispensable in the management of global competition . 2 . Relevant : Relevant is the suitability of the information management needs . Relevant information will support management in decision making . 3 . Accurate : Accurate information will ensure accuracy in management decision making . 4 . Broadscope : is the breadth of information . With extensive information , management can minimize the risks that may arise from decisions made .

Definition of Management Accounting Information : Management accounting information refers to the process of continuous improvement of value to add value to products or services related to the planning, design , size and operation of financial and nonfinancial information systems that guide and direct the management action , motivates behavior , and supports and creates the cultural values necessary to achieve organizational goals . Benefits Information : 1 . Can reduce the uncertainty . 2 . Helps management to act better . 3 . Helps management to identify internal and external environment . 4 . Assisting management in the assessment of performance . 5 . Assist management planning . 6 . Motivating Management .

Role of Management Accounting for the parties concerned in the Organization In the hierarchy of management can be grouped into three sections: upper management (senior executive), middle management (middle management), and under management (operational level. Each level requires different information. (Samsryn, LM, Managerial Accounting A Introduction to 2002) Example: On the organization of a workshop supervisor lower level management (operational level). The task of the supervisor is checking motorcycles etc.. The information required is the amount of damage, the damage frequency, the number of components required and so on. While the workshop manager is a middle management level, the required information is different from the operational level. Intermediate level requires such information relating to how to increase income (profit) company. Middle management is more focused on ways or strategies that can increase its profit. While the owner (owner) or the board of directors is an example of upper management (senior executive). At this level require information on how to devise a strategy to maintain market share in the garage, enlarge the turnover of the company, a diversified company, customer satisfaction and loyalty and so on. It seems clear that the above examples of each level of management companies require different information to each other. The role of information for managers As we know the information is important in decision making for managers, because managers are leaders and active participants in the process of planning, control, and decision making. Therefore, managers play an important role in decision-making and directing an organization in order to achieve the target.

While the information itself is the "engine" that makes the management runs. In the absence of a continuous stream of information management will be helpless to do anything. Therefore, organizations are required to have an extensive network, in order to allow different levels of management can be linked through the communication channel. Given the actual and reliable information so managers can make decisions with less is more focused and effective. 2.3 Differences in Management Accounting and Financial Accounting

Information Financing Accounting Audience Eksternal Goal Reporting past performance at the external Time Hystorical Type of Only financial measure. Information

Limitation

Regulation, is controlled by the standard rules of financial

Characteristics of Objective, can be Information audited, reliable, consistent, and appropriate Scope Reports the overall Tells decisions and actions organization

Management Accounting Internal Tells of decision making by workers and managers internal feedback and control of operating performance Actual, Future Financial and operational and physical measurement processes, technologies, suppliers, customers and competitors There is no regulation, and information systems are determined by management to bring together the strategic and operational needs More valid subjective considerations, relevant and accurate

In addition to differences between financial accounting and management also have in common is: 1. Accepted accounting principles prevalent in both the financial accounting is most likely also a relevant measurement principles in management accounting. 2. Both use the same operating information. (Hariadi, Bambang, Management Accounting 2002

2.4 Role of Management Accountant Ethical Behavior Management Accountant Ethical behavior involves the selection of actions and the corresponding right and proper . Our behavior may be right or wrong , appropriate or deviant , and the decisions we make can be unfair or biased . People often have differing views on the meaning of ethical terms , but there appears to be a general principle underlying all ethical systems . There are 10 core values identified produce depicting principles of right and wrong in a general framework , namely : Honesty ( honesty ) Integrity ( Integrity ) Holding the promise ( promise keeping ) fidelity ( fidelity ) Justice ( fairness ) Concern for others ( caring for others ) Awards to others (respect for others ) Citizenship and responsible ( responsible citizenship ) Achieving perfection ( pursuir of excellence ) Accountability ( accountibillity ) ( www.google.com ) IMA ( Instititute of Management Accountants ) issued a statement on standards of ethical behavior of management accountants . Those standards are as follows . 1 ) Competence Management Accountant is responsible for a) Maintain a professional level of competence possessed by continually developing knowledge and expertise . b ) Perform professional duties in accordance with laws , regulations , and technical standards that apply

2.4 Role of Management Accountant Ethical Behavior Management Accountant Ethical behavior involves the selection of actions and the corresponding right and proper . Our behavior may be right or wrong , appropriate or deviant , and the decisions we make can be unfair or biased . People often have differing views on the meaning of ethical terms , but there appears to be a general principle underlying all ethical systems . There are 10 core values identified produce depicting principles of right and wrong in a general framework , namely : Honesty ( honesty ) Integrity ( Integrity ) Holding the promise ( promise keeping ) fidelity ( fidelity ) Justice ( fairness ) Concern for others ( caring for others ) Awards to others (respect for others ) Citizenship and responsible ( responsible citizenship ) Achieving perfection ( pursuir of excellence ) Accountability ( accountibillity ) ( www.google.com ) IMA ( Instititute of Management Accountants ) issued a statement on standards of ethical behavior of management accountants . Those standards are as follows . 1 ) Competence Management Accountant is responsible for a) Maintain a professional level of competence possessed by continually developing knowledge and expertise . b ) Perform professional duties in accordance with laws , regulations , and technical standards that apply

5 ) ethical conflict resolution In the implementation of standards of ethical behavior , management accountants may encounter problems in identifying unethical behavior or in resolving an ethical conflict . When faced with ethical issues are important , management accountants must follow the policies set forth in the conflict resolution organization . If these policies do not resolve the ethical conflict , management accountants should consider the following actions : a) Discuss the matter with your supervisor unless the problem involves the supervisor. b ) Explain the relevant concepts by confidential discussion with an objective advisor is to achieve an understanding of the possible actions . c ) If the ethical conflict still exists after the action on all levels , management accountants may have no alternative but to resign from the organization and provide informative memo to the organization's designated representative . d ) Unless governed by law , communicate the issue to the various authorities or individuals who are not related to the organization is not considered appropriate .

Chapter III conclusion 3.1 Conclusion Management accounting is one part of the accounting science that focuses on the organization of the problem as well as the organization of information needed. Reports of the company's accounting department can help managers make decisions more wisely and focus, once a decision is taken usually accounting department will assess whether it is effective and efficient decisions. Or in other words, Accounting and Management Accounting Reports present information that is primarily intended for members an overview financial condition in achieving corporate goals. On the other hand managers must determine the purpose of the company, outlining the objectives, evaluate and take action for the achievement, after controlling what has been set. Accounting information is helpful to run the manager function.

Daftar Pusaka :

Hariadi, Bambang, Management Accounting, 1st edition. London: BPFE 2002 Machfoedz, Mas'ud, Management Accounting, New York: 2002 BPFE Samsryn, LM, An Introduction to Managerial Accounting, Jakarta: Rajawali Press, 2002 Ray, H, Garrinson, DBA, Management Accounting, London: Ak Group 1987 www.google.com