Accounting Management Information Type
Management accounting information can be attributed to three things, namely the object information (product, department, activity), the alternative will be selected, and the authority of managers. Therefore, management accounting information is divided into three types of information:
1. Full Accounting Information
Full accounting information includes information of the past and the future of information. Full accounting information which contains the past information is useful for reporting financial information to top management and outside the company, profitability analysis, providing an answer to the question “how much money has been spent on something”, and determination of selling prices in cost-type contract.
Full accounting information which contains the future of information useful for the preparation of the program, the determination of the normal selling price, transfer pricing, and determining the selling price set by the government.
2. Differential Accounting Information
Differential accounting information is estimated differences in assets, income, and / or costs in the other action alternatives. Differential accounting information has two main elements, namely an information age to come and differ among the alternatives faced by decision makers. Differential accounting information which is only concerned with the cost of so-called differential costs, which is only concerned with revenue-called differential revenue, and is concerned with the assets, is called differential assets.
3. Responsibility Accounting
Accounting information is the information assets, income, and / or costs associated with managers who are responsible for a specific responsibility center. Accounting information is information that is important in the management control process because the information it stresses the relationship between financial information to managers who are responsible for the planning and implementation. Accounting information is thus a basis for analyzing the performance of managers as well as to motivate the managers in carrying out their plans as outlined in their respective budgets.
Crisis in Accounting Management
For several months ago, the accounting profession experienced events and major changes, which mostly focuses on the performance and financial accounting issues (such as financial accounting rules are complex, ethical aspects of the profession and so on). While we have taken in the journal argued that the crisis in management accounting as large as the crisis in financial accounting. It can be concluded with the terms of the crisis in management accounting is:
A. Users Factor
In traditional management accounting focuses on providing only to internal users such as factories, division, or the company’s internal environment and do not follow the economic expansion of the company, especially on the external part of the business that consists of stock, joint ventures, and other special purpose companies. Along with the global demands more attention focused on the ability of management accounting to measure and evaluates internal and external fields in order to optimize the company’s decision to be taken by external parties. The parties are:
1. Internal parties
2. External parties
- Investors
- Shareholder / owner of the company
- Government
- Creditors
- The other Parties
B. Restriction Factors and Process
Management accounting does not depend on accounting principles. SEC and FASB establish accounting procedures that must be followed to the financial statements. Input and the process of financial accounting must be clear and limited. Only certain economic activities which qualify as inputs and processes should follow the method accepted by the public. Unlike financial accounting, management accounting has no special institutions that govern the format, content, rules in selecting the inputs and processes, and preparation of financial statements. Managers are free to choose whatever information they want, their provision can be justified on the basis of cost-benefit analysis.
Performance assessment managers are now beginning to experience a shift. If the first judge a manager’s performance is quite simply from a financial perspective, but now to get a more comprehensive picture of the two perspectives should be known as the balanced scorecard. Performance appraisals will be done from two sides, namely finance (financial) and non-financial such as assessment of customer, growth and learning, as well as internal business processes.
Balanced scorecard is the latest issues in management accounting. Balanced scorecard is a strategic management system that describes an organization’s mission and strategy into operational objectives and performance benchmarks for four different perspectives, namely financial perspective, customer perspective, internal business perspective, and learning and growth.
Financial and Accounting Management
Accounting information systems in an organization has two main subsystems: the system of management accounting and financial accounting systems. Accounting information system is a subsystem of corporate management information system as a whole.
Management accounting system which includes the unification of the management, presentation and interpretation of the information used for the formulation of strategies, activities planning and control, decision making, optimization of resource use, disclosure to the owner and outsiders, disclosure to workers, safeguards assets in order to produce information for internal users, such as managers, executives, and workers.
Management accounting specifically identify, collect, measure, classify, and report information, which is useful for internal users in planning, controlling, and decision making. An integral part of management relating to the identification and interpretation of the presentation / interpretation of the information that is useful for:
- Formulate strategies.
- The process of planning and control.
- Decision making.
- Optimization of the decision.
- Disclosure of shareholders and outside parties.
- Disclosure of an organizational entity for employees.
- Protection of assets of the organization.
While financial accounting is part of the accounting related to the preparation of financial statements for external parties such as shareholders, creditors, suppliers, and government. The main principle used in financial accounting is the accounting equation (Assets = Liabilities + Equity).
Financial accounting issues related to the recording of transactions for a company or organization and preparation of periodic reports from the record. This report is prepared for general interest and is typically used to assess the achievements of the company owner or manager is used as a manager of financial accountability to shareholders.