Problem Statement Management accounting's report fail to help manager make decision to reduce cost ; improve productivity Lack of information to interpret real meaning of data Fall of management accounting that the improvement does not reflect with the changes business condition Objective Identify the problem causes the fall of management accounting Solution to find a way to improve management accounting that provide accurate information an easy access for manager make decision Criticism of lack of management accountingLink between past management accounting ; present management accounting Methodology of Study 1. Historical ; Background of management accounting i. Early age - Simple transaction 0 No level of management - Focus on conversion cost (Labor, Material, ; some attribution overhead) it. Middle Age - Advances in transportation ; communication (railroad ; television) - Much larger geographical area distribution products - Provide summary measure of performance iii.
Modern Country - Problem coordinating diverse activities - Management accounting innovation return on Investment (ROI) - Measure in term of ultidivisional form 2.Dupont ; General motor as model Return on Investment (ROI) measure Evolution of management accounting did not keep pace with the improvement in corporation product ; process technologies 3. Accounting for Caravan Allocate total profit for short term period not meaningful exercise transaction is important for cash receipt ; cash expenditure 4. Academic Led Astray Cash flow of Inadequate cost control Traditional measure approach 5. Research from Tom Johnson ; Bob Kaplan Companies not aware the truth management accountingCompanies apply traditional system measure which lead difficulties interpret real meaning of information from data Provide book for management accounting for people to aware the important of implication management accounting Finding ; Discussion of Study .
Causes the fall of management accounting . Focus narrowly in producing report . Error in measurement of value Failed to provide accurate cost iii. Focus in the short term profit not for long term 'v.
Manager fail to interpret the truth information from data v. Situation of Management Accounting 2. Past . Simple Transaction . No structured organization Focus on short term profit making b. Present .
Complex transaction i'. Provide summary measure for performance Structured organization Focus on long term condition Factor that risen the management accounting 3. . Provide timely and accurate information to control the cost ; improve productivity it. Two way communication to get truth information Learn from roots 'v.
Awareness & overcoming defensiveness denial ( learn key for success) v. Development of management accounting in line with the general changes
