6 Definition of Management Accounting According to Experts (Complete)

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6 Definition of Management Accounting According to Experts (Complete) In all activities carried out by a company, there will always be various problems, both external and internal. In overcoming these various problems, adequate management and reporting is needed to prevent fraud or waste in terms of production.

6 Definition of Management Accounting According to Experts (Complete)

Every company definitely needs a name accountancy management, which is a link network to present all useful information and can help the leadership of the company in order to achieve the goals that have been previously determined previously. For a more detailed discussion, let's look at some of the meanings of management accounting below.

Definition of Management Accounting

Management accounting is a field of accounting which has the goal of presenting all forms of reports as a business unit for the interests of internal parties in carrying out various management processes which consist of planning, organizing, directing and also control.

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Management accounting is one of accounting which aims to produce all financial information to the interests of the company's internal parties and management in an effort to achieve the goals of a company.

Management accounting is a process of identifying, measuring and reporting on all financial information which makes it possible for an entity to exist assessment, a firm decision for the management of the company by using this information which is the center point for the parties in the company.

Definition of Management Accounting According to Experts

There are also several definitions of management accounting according to the opinions of experts in their fields, including the following:

1. Mulyadi (2001:2)

According to Mulyadi's opinion, he explained that management accounting is financial information which results from the type of management accounting used especially from an internal user organization.

2. Halim and Supomo (2000:3)

They argue that management accounting is an activity or process in which it produces information in financial form to management in making an economic decision to carry out management functions.

3. Charles T. Homgren (1993:4)

He here explains that management accounting is a process of identifying, preparing, measuring, accumulating, analysis and interpretation as well as communication of information that can help executives meet their goals company.

4. Hariadi (2002:3)

In the opinion of hariyadi which he explained that management accounting is a process of identifying, measuring, and collecting, in analyzing, recording, interpreting, and also as reporting of economic events to business entities where this is done so that management can carry out the functions of planning control as well as for decision making decision.

5. CIMA / Chartered Institute of Management Accountants

Management accounting is a process of identifying, measuring, accumulating, analyzing, compiling, communicating and also interpreting information. This is used by management in making evaluations, plans, so that they can control the entity. In order to ensure accountability as well as for existing resources.

6. RA Supriyono (1993:8)

He quoted from the Management Accounting Practices (MAP) committee formed by the National Association of Accountants (NAA) that management accounting is the process of identifying, measuring, data collection, analyzing, preparing, and communicating financial information that is used by management to planning, evaluating, controlling within an organization or company, as well as ensuring the proper use of resources and accountability for all of these sources. Management accounting also consists of preparing financial statements for non-management groups such as creditors, shareholders, tax authorities and other institutions.

What is meant by management accounting as a financial information processing system is an information processing process for meet all management needs in carrying out the functions of planning, coordinating and also controlling a company or organization.

While what is meant by management accounting as a type of information is a depiction of an information which is generated by the processing of financial information. Where information is facts, observational data, perceptions or something else as well increase the knowledge needed by humans to reduce doubts about taking a decision decision.

Objectives of Management Accounting

  • According to Rita Eni Purwanti & Indah Nugraheni that the purpose of management accounting is to produce a financial information in the interest of management (internal company) in an effort to achieve the goals of company. This information is needed by management as material for consideration in making management decisions and also to see or assess the results that have been obtained by a company.
  • As a process of identifying, measuring and reporting financial economic information, which allows for judgments and decisions a clear and firm response to management who uses this information, which is the central point as the parties in the organization company. Such as: Calculation of product costs, as well as Calculation of the cost of an activity, Calculation of the cost of a department.
  • The main objective of the field of accounting is to present reports which as a whole in an effort for the benefit of parties which is internal in order to carry out the management process consisting of planning, organizing, directing as well as on control.

Functions of Management Accounting According to the Scope of Management Accounting

1. Finance Manager

Which requires information related to the company's financial activities such as funding working capital, cost of fund expenses to a number of working capital required of a company, as the rate of return on investment, for the rate of return on capital, financial ratios and others etc.

2. Production manager

This requires data information about the detailed costs of the Cost of good sold and the cost of production, for example the total in production costs, the cost per units to product, direct labor burden, and also on other overhead costs which are directly involved in the process production.

3. Marketing Manager

This requires an information data of all related cost components for determining product selling prices, as well as determining a credit sales system or in cash, expenses from sales commissions, marketing fees, as well as information on discount rates on certain products in order to increase volume sale.

4. Top Management Party

This requires information which is related to strategic policy making in companies such as on the preparation of a budget, expansion in business, product diversification, or from an investment policy other.

Definition of Management Accounting According to Experts

Management Accounting Examples

Here management not only needs information on the type of investment in which this will be carried out and also information on the rate of return and playback period that needs to be carried out. If here management already knows about the planned investment rate of return information of 20% as well as a playback period of 3 years so that this will obtain certainty about the investment that will be made or No. Sometimes a manager also needs information about the benefits of mutual funds as an alternative investment option.

Thus the discussion this time about 6 Definition of Management Accounting According to Experts (Complete), Hope it is useful. Thank you very much 🙂

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