In the 1880s, manufacturing
companies in the United States began to concentrate in the development of large-capacity
production technology. Managers and engineers at metal company has developed a
procedure to calculate the relevant product cost so-called scientific
management.
This procedure is used to analyze the productivity and profitability
of a product. However, as the development of accounting thought in 1914 then after
the procedure began to disappear from the company's accounting practices.
After World War I, there are accounting rules that have reduced the impact of accounting
information useful for evaluating the performance of subordinates in large
companies (lost relevance). Until the 1920s, all the managers believe the information
related to the primary production processes, transactions and events that result
in a nominal amount of the financial statements. After 1925, the information
used by managers to be more simple and more manufacturing companies in the U.S.
have developed a management accounting procedures as it is known today.
During a period of more than
sixty years, accounting academics trying to restore the relevance of accounting
information with the boarding of financial accounting information. The business
model is simple manufacturing companies, textile companies are similar to the
19 th century, and in order to solve production problems, academic boarding reorder
inventory reporting information. Nevertheless, the model is too simple to explain
the real problems faced by managers, but it will be included in order to simplify
how information derived from boarding the financial statements can be made relevant to the decision-making
