FACTORS OF LIMITATIONS ON CONTRIBUTIONS AND PROCESS

B. FACTORS OF LIMITATIONS ON CONTRIBUTIONS AND PROCESS  

Management accounting is not dependent on accounting principles. SEC and FASB to set accounting procedures must be followed to report prosess of financial. Output and financial accounting must be clear and limited. Only the economic activities that meet certain qualifications as input and process, must follow the accepted method by the public. Unlike financial accounting, management accounting has no special institutions that govern the format, content, rules in selecting inputs and processes, and preparation of financial statements. Managers are free to choose whatever information they want-provision can be justified on the basis of cost-useful analysis (cost-benefit analysis).

Today in the conventional charging is becoming obsolete and switch to event-based charging / activity-based costing system (ABC-system). Management accounting in the development of many contemporary issues in management techniques were adopted, such as the method just in time (JIT), total quality management (TQM), target costing, and customer orientation.

CRISIS IN MANAGEMENT ACCOUNTING

Bob Eiler and Tom Cucuzza

For a few months ago, the accounting profession through events and major changes, which mostly focus on performance and financial accounting issues (such as accounting rules are complex financial, ethical aspects of the profession and so on). Meanwhile, in a journal that we took argues that the crisis in management accounting as big as the crisis in financial accounting. It can be concluded in relation to the crisis in management accounting are: