Towards understanding changes in management accounting in the manufacturing industry in Indonesia

Nanik Wahyuni,Yuniarti Hidayah Suyoso Putra

doi:10.5267/j.ac.2020.9.002

Nanik Wahyuni, Yuniarti Hidayah Suyoso Putra

Open Access

https://doi.org/10.5267/j.ac.2020.9.002

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Journal: Accounting	Publication Date: Jan 1, 2020
Citations: 1	License type: cc-by

Affiliation: Universitas Islam Negeri Maulana Malik Ibrahim

Abstract

This study aimed to investigate the perceptions and understanding of manufacturing industry managers in Indonesia in an effort to measure the effectiveness of management accounting changes, especially under the conditions of environmental uncertainty. In this study, a research questionnaire was used, and was sent directly to the respondents through surveyors and email to 389 manufacturing companies. The sampling technique was simple random sampling. Statistical techniques were based on Confirmatory Factor Analysis and descriptive analysis, namely mean and mode. The results of this study provide a theoretical contribution that the success of management accounting practices is caused by the application of the right organizational structure and strategy within the company. The areas of expertise, commitment, participation, and existing human resources are well managed in accordance with the company's vision and mission. It is expected that the company's management would be able to deal with environmental changes in improving its performance by changing management accounting practices

Highlights

Performance achievement cannot be separated from the role of management accounting
This study aimed to investigate the perceptions and understanding of manufacturing industry managers in Indonesia in an effort to measure the effectiveness of management accounting changes, especially under the conditions of environmental uncertainty
This research was conducted at a manufacturing company considering that this industry is quite unique and has a complex work capacity ranging from the production process to finished goods that are ready for sale

Summary

Introduction

The uncertainty of environmental changes is one of the causes of changes in management accounting practices (Moores & Yuen, 2001). Every part of the company must be consistent and support each other in strengthening management accounting practices in order to achieve a competitive advantage and achieve expected performance targets (Moores & Yuen, 2001). According to the Central Bureau of Statistics (BPS), there are four sectors that contribute significantly (> 10%) to the Gross Domestic Product (GDP) by 2019, this phenomenon is suspected, among others, by the inability of management to anticipate changes that occur in the internal and external environment. Management's failure to anticipate these changes is due to the company's inability to manage the information used for decision making. The focus of this research is to understand changes in management accounting practices by identifying indicators of changes in management accounting practices

Objectives

Methods

Results

Discussion

Conclusion