Management Accounting, Theory and Application in the Company

Management Accounting, Theory and Application in the Company. In the development of today's business world, management accounting reports play an important role. Similarly, the role of the management company must also go as expected for the company to thrive. Companies that thrive it must have good decision-making skills also in policies are made, including in management accounting. So the role of accounting and management can not be separated again so came the management accounting.

Definition of Management Accounting Brief

Management accounting is the process of measuring, collecting, identifying, delivering and communicating financial data and information or financial that will be used by the management of the company to make decisions for planning, controlling organization, the evaluation phase and accuracy when it will use the resources available within the organization .

Management Accounting from Charles T.Homgren (1993:4), according to the writer is a process of identifying, measuring, accumulating, analyzing, preparing, interpreting and communicating information that could help the executive to meet the goals of the organization. From the above definition we can know that the management accounting focuses on the role of management accounting is used as a source of financial information of an organization or company in which the information is required by the internal party company incorporated in the management to take a decision which is good for the company or the organization itself.

That's why this management accounting plays a very important role in businesses ranging from small, medium and even large businesses all require management accounting for business development. [Calculations in accounting] The development of management accounting is meant here is not only the development of a for-profit business management accounting course but is also necessary as a means of determining a plan, supervision or as a benchmark for making a decision.

Management accounting is caused by urging the need for a comprehensive management accounting information and detailed, which could help the company's management in leading a company or organization that is growing increasingly complex with problems.

If further detailed the management accounting are :

1. Confidential report that will never be reported to the public, and is only used by the management of the company in question only.
2. Management accounting is never using the historical basis of past or future. Management accounting is more looking to the future or a plan that focuses on achieving in the future.
3. Preparation of management accounting is not based on financial accounting standards, but refers to the financial statements required managers for decision-making, such as the cost of salaries and production costs compared to the benefits to decision making salary increase for all employees.
4. Management accounting in the form of accounting statements of a general nature and is not as comprehensive financial accounting report more detailed and elaborate.

Types and Benefits Management Accounting
Management accounting is useful as a basis for decision making of a company can be subdivided into three types, namely :

Full Cost Accounting Management

Management accounting is the total cost of the full total cost including production costs charged to each product. Full cost management accounting will be used to present the company's financial statements and changes in financial position to be used for making a decision for example to assess the job performance of managers, to establish the normal selling price of a product as well as to plan short and long-term plans will be realized by the company.

Differential Cost Management Accounting

Management accounting is not historical cost differential due to differential cost management accounting is only used to select one of the alternatives of the proposed alternatives would be the decision of the company in the future.

Types of management accounting this one only uses the information the future. Past information would not be used in this type of differential cost management accounting.

Liability Management Accounting
Management accounting is one of the responsibilities of management accounting used by the characters in the top management to split the company or organization they lead to certain parts where each part has the right to set their own part with full accountability.

This option was taken in the hope that the overall company goals can be easily achieved.

Guidelines for Management Accounting Statements
According to James D. Wilkinson and John B. Campbell (1993) management accounting reporting guidelines are as follows :

Application of Full Responsibility

The role of accounting and management can not be separated again. Management accounting reports should be able to express the fulfillment of responsibilities of each part in an enterprise so as to know the achievements and accomplishments of each section. That means that every part of management accounting in a company must make a report to be reported to the head of the company in order to further decisions for the betterment of the management as well as accounting for the company's overall progress.

Determination of Exclusion Principle
Management accounting reports should also implement the system or the exclusion principle. The point here is that management accounting reports should be made to distinguish between the issues go well and the issues that still needs special attention.

Or it can be said that the management accounting reports applying this exemption will further highlight the problems that still need to get more attention from the top management.

Should Data Brief
Management accounting reports should be made as short as possible, but can be understood easily and understood in a short time. It should be kept as the head of the company at the highest level have very limited time to study and read the report of management accounting.

With the present data are compact yet easy to understand in a short time it will help top management in the company in their decision making.

Should There Interpretative Comments
Comparison Guide
Management accounting reports should be made as short as possible, but can be understood easily and understood in a short time. It should be kept as the head of the company at the highest level have very limited time to study and read the report of management accounting.

With the present data are compact yet easy to understand in a short time it will help top management in the company in their decision making. In presenting the report of management accounting, management accountants must provide brief comments to make it easier for top management to understand the management accounting reports usually use the language of accounting.

Examples of comments given the management accountant of management accounting reports can give a brief explanation of cause and effect of a problem or indicate what action should be taken to improve a situation that deviates from the previous plan.

In addition to these five things mentioned above, James D. Wilson and John B. Campbell also gave some important factors that can help the presentation of management accounting reports, namely :

1. An important factor that helped the presentation of management accounting reports:
2. Management accounting reports should be presented in a timely, clear and simple.
3. Management accounting reports should also use language and terms that are known by the company that will use it.
4. The report should be accurate and presented in a logical sequence.
5. Form of presentation should be adapted to the management accounting leaders who will use it and the cost of preparation of management accounting reports should also be considered.

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