Sumber Management Accounting Volume & Halaman 68, 7; ABI/INFORM Global; p22-29 Tahun Jan 1987 Penulis H. Thomson and Robert S.Kaplan Reviewer Rido Aprianda ( Tanggal 23 September 2017
Background/Problem [1] Driven by the procedures and cycle of the organizations
financial reporting system, management accounting information is produced too late, too aggregated, and too distorted to be relevant for managers planning and control decisions. [2] Management accounting reports are of little help to operating manager attempting to reduce costs and improve productivity. The management accounting system fails to provide accurate product costs. [3] Managers horizon contract to the short-term cycle of their monthly profit and loss statement. [4] Todays management accounting systems provide a misleading target for managerial attention. They fail to provide the relevant set of measures that apporpiately refelect the technology, products, process, and competitive environtment in which the organization operates. [5] Financial managers often fail to recognize when the accounting numbers are no longer providing relevant or appropriate measures of operations [6] Ironically, as management accounting systems became less relevant and less representative of the organizations operations and strategy, many companies ecame dominated by senior executives who believed they could run the firm by the numbers. Solutions [1] Vigorous global competition, rapid progress in product and process technology, and wide fluctuations in currency echange rates and raw material prices demand excellence from corporate management accounting systems. An organizations management accounting system must provide timely and accurate information to facilitate efforts to control costs, to measue and improve productivity, and to devise improve production process. [2] Todays designers of management accounting systems can use sophiscated electronic technology to devise reporting and control systems that are more accurate, more timely, and hence, more effective than those designed by their predecessors. Future management accounting systems should distingusih clearly between two types of information-strategic profitabilty information and process control information. There must be one system to provide information about the strategic variables that create value for organization. Conclusion A proper management accounting system should reveal whether an organization conducts its internal economic activities more efficaciously than another organization or unaided market exchange might conduct the same activities. That is the ultimate strategic question. A proper management accounting system must be signed to answer that question (why does this organization exist?).