Management Accounting Practices in Indonesia

Abstract

This study obtains empirical evidence about traditional and strategic management accounting practices (MAPs) in companies in Indonesia. Traditional MAPs include management accounting systems for costing, budgeting, performance measurement, and decision-making. Strategic management accounting practices encompass activity-based management, analysis of competition, industry analysis, long-range forecasting, value chain analysis, long-range forecasting, target costing, and total quality management. Data collection uses both a questionnaire and content analysis of job vacancies published on the websites of Indonesian firms. Data analysis uses descriptive statistics based on the average intensity of use. The results show that strategic management accounting techniques for budgeting, costing, and performance evaluation are still intensively used. Meanwhile, regarding strategic management accounting systems, the five most frequently used are activity-based management, analysis of competition, industry analysis, long-range forecasting, and value chain analysis. The results show that while traditional MAPs still are used intensively, strategic management accounting systems also are starting to be employed more frequently.