Managerial Accounting - A Perspective

Machine Translated by Google MAIN SUBJECT 1 MANAGERIAL ACCOUNTING - A PERSPECTIVE Organization and Purpose An organization is a group of people united or working together for achieve common goals. General goals in this case are the goals of the organization (objectives). Organizations consist of business organizations and non-profit organizations. Business organizations aim to produce a product or service and earn a profit. Non-profit organization aims to provide services to the public or open for profit. To achieve its goals, the organization needs to determine the strategy (strategic planning). strategic plans consist of: 1. Product strategy, namely determining the type of product or type of service to be marketed generate profits. 2. Marketing strategy, namely determining the marketing strategy to generate maximum profit, such as: choosing a form of promotion, creating a positive image of product quality or services, or provide discounts. Strategic planning is the result of management decisions. The right management decision can be obtained from management that carries out its functions effectively. Management Functions In general, management has four functions in the organization, namely: (1) Planning, (2) Organizing and Directing, (3) Controlling, dan (4) Decision making. Planning is the steps that will be taken by managers to achieve organizational goals, either short term goals and long term goals. Examples include: planning a location marketing, discount policies, and hours of operation. All the manager's plans are communicated inside organization so that all parts within the organization are coordinated when the plan is implemented. Organizing is managing human resources and other resources within the organization so that the previously set plan can be achieved. For example, among others establishes the duties of each employee and defines the procedures to be followed in performing them 1 Machine Translated by Google sales transactions, thus assuring the manager that the customer will receive the best service which has an impact on increasing profits. Directing is giving instructions or directions to subordinates in doing things routine activities or daily activities in the organization. An example is straightening disagreements or differences in perceptions among employees or parts of the company, answer questions employees, and help them solve causal or non-routine problems, or instantaneous problem. Controlling is the action taken by the manager to ensure that each part The organization carries out a predetermined plan . An example of a controlling action is to compare between what has been planned with accounting and other reports show its realization. Accounting and other reports are called feedback. Feedback can used as a basis by managers to determine attitudes, such as: the need to revise planning, formulating a new strategy, or maybe changing the organizational structure. Decision making is the act of making a rational decision among several alternatives. This decision-making function is part of all management functions. Decision making is needed in carrying out the functions of planning, organizing and directing, and controlling. All informed decisions. In order to make the right decision, information is needed which is relevant. The quality of management decisions reflects the quality of accounting and other information. Planning and Control Cycle Scheme 1.1 : Planning and Control Cycle Planning (Initiating Long- and Short-Term Plans) Controlling (Evaluating Differences Between Plans and Actual Performance) Organizing and Directing Decision (Implementing the Plans) Making Controlling Performance) (Measuring 2 Machine Translated by Google Managers' Need for Information Information is needed by managers in carrying out their functions. Without information the manager does have the power to do something. Information flows from the accounting department or from the accounting department to other parts in accordance with the organizational structure. The organizational structure shows the network communication among various levels of management. Accounting information and planning functions To carry out the planning function, managers need a budget. Budget provided by accounting department on the instructions of the controller. The budget presents the manager's expectations and goals quantitative (eg sales plan) and communicated with other parts of the organization. Accounting information and controlling function To measure the level of conformity between the realization and the previously planned, managers need accounting information in the form of performance reports (performance reports). The performance report presents the difference between the plan and the actual for a certain period. This report helps managers to see what problems need special attention. Accounting information and organizing and directing functions Related to the daily operations of the company, managers need data on sales, prices, and company costs. For example, managers may decide to undertake an advertising program to increase sales based on cost-volume-profit relationship analysis. Accounting information and decision making Accounting information is the key to analyzing alternative solutions to problems. The reason is that the analysis requires data on costs and benefits in order to identify the best alternative. Data on costs and benefits is provided by the accounting department. The link between organization, management, and accounting information can be described in the following scheme: 3