Management Accounting Systems Research Articles

Pengaruh Pengelolaan Aset dan Sistem Akuntansi Keuangan terhadap Kualitas Laporan Keuangan Daerah pada Kantor Badan Keuangan dan Aset Daerah Kabupaten Situbondo.

This study aims to examine the effect of asset management and financial accounting systems on the quality of regional financial reports. This research is a descriptive quantitative approach that tests the hypothesis: the effect of asset management on the quality of regional financial reports and the influence of the financial accounting systems on the quality of regional financial reports. The data used are primary data collected through direct questionnaire surveys. This study used a sample of 35 respondents who were employees of the Situbondo Regency Regional Finance and Asset Office. Data analysis using multiple linear regression analysis. The results of the study show that asset management has a positive effect on the quality of regional financial reports and the financial accounting system has a positive effect on the quality of regional financial reports.

Designing and implementing a hybrid management accounting system in a public sector organization

Purpose: Many public entities experience difficulties in designing and implementing a Management Accounting and Control System (MACS). This work aims to design a MACS implementation framework for a public sector organization, constituting a useful tool for other public organizations conducting a similar task. Design/methodology/approach: Following an interventionist research, a comprehensive case study of the organizational and financial structure of the entity under study, as well as the operational activity was carried out. Findings: A framework for designing and implementing a MACS in the public sector is proposed, including a list of main practical difficulties and a roadmap for overcoming them. Research limitations/implications: Since the proposed MACS implementation and cost allocation criteria were developed with the case under investigation in mind, modifying them for use in other organizations is necessary. Practical implications: Professionals in the field acknowledged the model's validity, enhancing the quality of the available data. Originality/value: The implementation of MACS in public sector organizations face several challenges, arising from the complexity that characterizes these organizations. This research adopted a very practical approach, seeking to identify tools to support future MACS design and implementation processes in public organizations. Keywords: Activity-Based Costing (ABC), Costing system; Departmental Method (DM), Framework, Management accounting change, Public administration. https://doi.org/10.58869/EJABM008/SI02

COST ACCOUNTING IN THE CONSTRUCTION INDUSTRY

Cost management becomes the most effective aspect in effective business management. This is determined both by the limited growth of margin income in the stable trends of low added value, and by industry features. The relevance of the presented research is determined both by the dynamic development of the construction industry, which indicates the concentration of risks, and by the increasing potential in optimizing conditionally constant and conditionally variable costs, which are characteristic of construction. The search for reserves to reduce the cost of construction and increase profitability requires management data on the real level of costs. Research in the field of cost management and accounting is receiving increasing attention from researchers due to the scientific prospects of this area of economic knowledge.The purpose of the research is to clarify the features of cost management and their accounting in construction, taking into account current trends in the development of the industry.Research methodology: the use of general scientific methods of cognition (synthesis, analogy, generalization, deduction) allowed us to develop general patterns in the management of costs in construction. Data collection, study and comparison were carried out using empirical methods. When processing and systematizing the data, grouping and classification methods were used, which made it possible to identify opportunities for allocating new cost groups in the management accounting system. The information and statistical base of the study was compiled according to official periodicals and information and analytical data of the Republic of Kazakhstan.The originality / value of the study lies in the fact that it summarizes, evaluates and expands knowledge about costs in the construction industry, clarifying the impact of cost classification in improving the accounting of variable and fixed, direct and indirect costs.Findings. The author analyzes the main issues related to determining the cost of housing construction. The main types of costs arising in construction are clarified, the differentiation of costs for the purposes of their management and distribution in margin management is carried out, the issues of cost accounting in the context of financial and managerial accounting are investigated.

THE IMPACT OF MANAGEMENT ACCOUNTING PRACTICES ON OPERATIONAL PERFORMANCE IN SMES IN THE COLOMBO DISTRICT, SRI LANKA

"The objective of this study was to address the research problem of how the effect of management accounting practices influences the operation performance of SMEs in the manufacturing sector of the Colombo district. Different SMEs use financial knowledge in varying ways, which affects the performance of the businesses. This study sheds light on the Practices of management accounting used by SMEs in the manufacturing sector and how they affect Operational success. The Management accounting practices which are discussed in the study is, costing, performance evaluation, budgeting, strategic management accounting and decision support system. The data gathered was primary data, using a convenience sampling method in cross-sectional time horizon. And the deductive research methodology and the survey method were used in the research design. The Research was conducted using demographic analysis, correlation coefficient analysis, and regression analysis. The sample was taken from the small and medium-sized, 131 manufacturing enterprises in the Colombo district. The study found, the budgeting system, performance evaluation system, and strategic management accounting system to have a statistically significant impact on operational performance. Costing systems and Decision support systems were found to be not statistically significant in regression analysis. Therefore, 3 out of 5 hypotheses were accepted. As for concluding remarks, this study’s findings recommend that using management accounting practices can enhance operational performance. Further, study suggests that budgeting, performance evaluation, and strategic management accounting be used by management to improve the operational performance of Manufacturing SMEs. The study thereby, hopes to increase the knowledge and awareness of students and professionals who are interested in this field. Additionally, this will provide insight on the management accounting techniques now employed by SME's and their level of financial literacy. Consequently, this study’s valuable information can be used by government, organizations, and experts to advance the Small Medium Enterprises of Sri Lanka."

Development of environmental management accounting system: a conceptual approach

With the rise of environmental problems caused by human activities, such as misuse of natural resources, rapid deforestation, and discharge of radioactive and other chemical waste into water bodies, soil and the atmosphere, environmental management accounting has emerged as a tool for promoting sustainable development and reducing negative environmental impacts in businesses. This area of accounting provides a means for analyzing, assessing, controlling, and managing the environmental performance of companies. However, there is a dearth of studies in the scientific literature that systematically assess the potential for introducing and developing environmental management accounting in an enterprise. Therefore, this study aims to identify the areas, instruments, outcome, impact measures, and other elements of environmental management accounting, and integrate them in a targeted manner to develop a conceptualized environmental management accounting system. The results of the literature review and systematic analysis are summarized to provide a conceptual framework for an environmental management accounting system consisting of the following elements: 1) objectives; 2) inputs; 3) processes; 4) outputs/outcomes; 5) feedback; and 6) external environmental conditions. The introduction of such a system would improve the development of environmental management accounting for the long-term sustainability and eco-efficiency of companies.

Strategic Management Accounting and Performance Measurement Systems: A Loose Coupling?

This study aims to clarify the association between strategic management accounting (SMA) and performance measurement system (PMS) based on configurational and contingency theories assumptions. For that, data were collected from 98 higher-level accounting managers working in Saudi companies listed at the Saudi Exchange's Main Market at the end of 2022. The results show that there is a positive and significant correlation between SMA and PMS, and there is a statistically significant positive effect of the level of practicing SMA on PMS adopted by surveyed companies. This means that the company that is practicing SMA in higher level tends to adopt a non-traditional PMS. The results also show that there is a statistically significant difference between surveyed companies in the level of performance due to the linkage between their PMS and SMA practices. Appropriate linkage between SMA and PMS leads for better performance. However, the present study supports the idea that SMA can be a contextual factor affecting the type of PMS adopted by companies. Keywords: Strategic management accounting, performance measurement systems, contextual factor, Saudi Exchange's Main Market. DOI: 10.7176/RJFA/14-10-06 Publication date: May 31 st 2023

Desentralisasi dan Ketidakpastian Lingkungan sebagai Pemoderasi Pengaruh Sistem Akuntansi Manajemen Terhadap Kinerja Manajerial

The research aims to obtain empirical facts regarding the role of decentralization and uncertainty as a moderator of the relationship between the management accounting system (SAM) and managerial performance. The research location is at the BPD Bali sub-branch office. The method of determining the sample in this study was purposive sampling and obtained 74 heads of business and operational sections who were selected to be sampled with the criteria for a minimum of one year's position. Hypothesis testing uses MRA or moderated regression analysis. The results showed that management accounting systems (MAS) did not affect managerial performance, decentralization and environmental uncertainty acted as moderators and did not moderate the effect of MAS on managerial performance.
 Keywords: Managerial Performance; MAS; Decentralization; Environmental Uncertainty

The Influence of Information Technology on Managerial Performance: Management Accounting Systems As Intervening Variables

The Influence of Information Technology on Managerial Performance: Management Accounting Systems As Intervening Variables

내부회계관리제도에 관한 고찰

This study studies the internal accounting management system in depth. More specifically, we intend to present meaningful research results by examining the importance of research related to internal accounting personnel and considering the limitations of the relevant research.
 Previous studies on internal accounting personnel are important in two aspects. First, they have inherent importance in the conceptual aspect. Second, in the empirical aspect, the uniqueness of the data and results generates the importance.
 On the other hand, existing theoretical/empirical studies on internal accounting personnel have two limitations. First, they have limitations regarding the measurement issues. Second, they show various limitations regarding disclosed data.
 The results of this study are meaningful in two aspects. First, we examine several issues about internal accounting management system critically by focusing on the personnel in charge of internal accounting. In particular, investigating the limitations of previous studies on internal accounting personnel from multiple angles is expected to provide useful implications for follow-up studies, information users, and policy authorities.

METHODS OF VALUATION OF ITEMS OF FINANCIAL REPORTING OF UKRAINIAN ENTERPRISES: UNIFICATION OF NATIONAL AND INTERNATIONAL STANDARDS

The purpose of the paper is to unify the methods of valuation of items of financial reporting of Ukrainian enterprises on the basis of national and international standards. Methodology. The theoretical aspects of the study are based on international accounting and financial reporting standards, as well as national accounting regulations (standards). The applied aspects consist in specifying the methods of valuation of certain objects of accounting (assets, liabilities, income, expenses) and their reflection in the financial statements. The results of the paper made it possible to determine the conditions for the implementation of international accounting and financial reporting standards in Ukraine. It was shown that their implementation began in 2007 and was completed in 2012 by public joint stock companies due to the requirements for placement of securities on stock markets. The impact on the implementation of international accounting and financial reporting standards by Ukrainian enterprises in connection with the signing by Ukraine of the Association Agreement with the European Union was determined. The characteristics of the Anglo-American and continental accounting models, their regulatory standards, existing differences between US GAAP and IFRS/IAS, work on their harmonization with a view to creating an international accounting model were presented. The methods of valuation of items of financial reporting were systematized: historical cost, present value, net selling price, fair value or amount of expected compensation. Their advantages, disadvantages and scope of application were determined. The cost approach to the valuation of financial reporting items and the prospects for its use were examined in more detail. It was shown that enterprise value is characterized by indicators reflected in balance sheet, off-balance sheet and financial statements. The information model for determining the value of an enterprise on the basis of financial statements was proposed. The methods of value determination depending on the organizational and legal form of an enterprise were differentiated. The sources of formation of its market and fundamental value have been clarified. The informational capacity of the items of the financial statements of an enterprise was estimated. The practical implications include the creation of an information model for determining the value of the company according to financial reporting, the substantiation of recommendations for regrouping its items for the needs of management accounting, and the creation of additional reporting forms – a value statement and a value-added statement. Value/originality. The methodological recommendations for the harmonization of the systems of financial and management accounting of added value were substantiated in terms of: recognition of income generated by fully depreciated assets; capitalization of financial costs; use of 8-class accounts; off-balance sheet accounting to reflect non-financial information about capital and integrated added value of a company; simplification of the tax system by introducing a single value added tax, which will absorb income tax and lead to further harmonization of financial and tax accounting.

The Impact of Quality Costs as a Mediator in the Relationship Between Management Accounting Systems and Financial Performance: the Case of Jordan

Objective: The current analysis aims to assess the mediating effect of cost quality on the relationship between management accounting systems and the financial performance of industrial enterprises listed on the Amman Stock Exchange. Theoretical framework: Three questionnaires are used for this purpose, their validity and reliability are checked; the first part deals with the cost of quality and consists of 15 paragraphs. The second part deals with the management accounting system and consists of 30 parts distributed in three dimensions (just in time, value chain, target cost). Design/methodology/approach: The third section is related to financial performance and consists of 10 paragraphs. It works on a random sample of 311 people. Results: The results show a statistically significant mediating role of quality cost on the relationship between the management accounting system and its three dimensions (just-in-time manufacturing, value chain, and target cost) and the financial performance of industrial companies listed on the Amman Stock Exchange. Originality: This study expands the use of data science techniques, big data, and artificial intelligence, as these are necessary and effective tools for improving the quality of financial performance and make a significant contribution to the fundamental objective.

Mckinsey Model and Management Accounting Systems Requirements to Measure and Analyze Performance in Sample of Emerging Companies

Purpose: The purpose of this study is to evaluate BALY as a startup (emerging) company in the Iraq’s market as an emerging company by the McKinsey model to monitor and analyze performance in it. Because of the similarities between the rising companies under analysis. Theoretical Framework: The measuring the company (BALY IRAQ) efficiency in terms of its Shared Values, Strategy, Structure, Systems, Style, Staff, and Skills using the McKinsey 7 S Model. All 7 components must be in sync with one another for optimal performance, with Shared Values serving as the driving force behind the growth of the rest. Together with their colleagues, managers use a system called a Performance Management System (PMS) to oversee all aspects of their staff's performance, from setting goals to monitoring progress to recognizing and rewarding success. Human resource efficiency may be measured with the help of PMS. Methodology: The net profit has been chosen as the measure of efficacy (Baly) Responses were gathered from key HR people at the target firms using a standardized questionnaire. Findings: It have been observed that the 7 Ss is most prevalent in a business and whether or not Shared Values has an influence on performance. The research also shows if any of the "S"s need to be adjusted to boost efficiency. Implications: This study can serve as a useful resource for entrepreneurs, and anyone seeking to start or evaluate a business on a global scale, as long as the framework is applied correctly and at the appropriate time. However, it can be disappointing if the business is not yet qualified to undergo the McKinsey framework evaluation process. Value: The value of the study is to evaluate the McKinsey 7s framework as a method for gauging a company's productivity as it is recommended by researchers as a reference, basis, and instrument for any company serious about assessing its performance or establishing a strategy and structuring its future organization.

Management accounting and control systems as devices for public value creation in higher education

AbstractThis paper investigates how management accounting and control systems (operationalized by using Simons’ levers of control framework) can be used as devices to support public value creation and as such it contributes to the literature on public value accounting. Using a mixed methods case study approach, including documentary analysis and semi‐structured interviews, we found diverging uses of control systems in the Dutch university of applied sciences we investigated. Although belief and interactive control systems are used intensively for strategy change and implementation, diagnostic controls were used mainly at the decentral level and seen as devices to make sure that operational and financial boundaries were not crossed. Therefore, belief and interactive control systems lay the foundation for the implementation of a new strategy, in which concepts of public value play a large role, using diagnostic controls to constrain actions at the operational level. We also found that although the institution wanted to have interaction with the external stakeholders, in daily practice, this takes place only at the phase of strategy formulation, but not in the phase of intermediate strategy evaluation.

Impact of risk-taking tendency and transformational leadership style on the use of management accounting system information: a direct-mediation model

PurposeThis research aims to determine the impact of the CEO's risk-taking tendencies and the transformational leadership style on the use of the management accounting system information, as well as the mediating impact of product creativeness and organizational citizenship behavior in this context. It also provides empirical evidence from Vietnamese enterprises.Design/methodology/approachThe current research was conducted using quantitative methods. It was conducted during the ongoing Covid-19 pandemic in Vietnam. The study population is represented by all of the Vietnamese enterprises listed on stock exchanges. Therefore, an online email questionnaire was used for data collection. Specifically, 670 emails were sent to CEOs and 146 complete responses were collected (21.79% rate).FindingsBy using the partial least squares structural equation modeling (PLS-SEM), the study results show that the CEO's risk-taking tendencies and transformational leadership style have a significant positive effect on the use of the management accounting system information. Additionally, product creativeness mediates the relationship between the CEO's risk-taking tendency, and the use of the management accounting system information. Also, organizational citizenship behavior mediates the relationship between transformational leadership style and the use of the management accounting system information.Research limitations/implicationsDespite attempts to overcome by GDP contribution ratio, convenience sampling tends to cause common method bias. Furthermore, small sample sizes can lead to heterogeneity and unstable estimates of the parameter. Causality issues may also arise because the model has no control variables. Therefore, later studies should take the necessary additional steps when sampling to stay consistent with the study population, possibly conducting surveys in several batches to determine the correlation between changes in variables, and allowing the ability to discover and add any necessary control variables.Originality/valueThis research acts as a bridge between management and management accounting, confirming the importance of this combination when efficiently using the management accounting system.

The Influence of Management Accounting Systems and Environmental Uncertainty on Managerial Performance with Information Quality as an Intervening Variable

The Influence of Management Accounting Systems and Environmental Uncertainty on Managerial Performance with Information Quality as an Intervening Variable

Environmental Management Accounting System Adoption and Sustainability Performance: Triple Bottom Line Approach

Environmental Management Accounting System Adoption and Sustainability Performance: Triple Bottom Line Approach

On the question of the relationship between budgeting and the management accounting system

In modern conditions, especially when the crisis has engulfed all countries, the problems of budgeting, their application in the development of a particular subject are more relevant than ever. The lack of a budget leads to wrong decisions and, along with it, wrong management in the development strategy of a company. And mistakes in a crisis are costly for an economist. The relevance of using a detailed budget, and on the basis of it, the implementation of operational control, the implementation of planned activities is beyond doubt. The relevance of research on budgeting management accounting, reflecting the technology of strategy development, is beyond doubt. Changes in technology cause changes in management. All this requires changes in the formation of accounting and information systems. At the same time, the role of the accountant is changing, he is involved in the process of developing a development strategy and maintenance of the track facilities. Thus, the information system is being formed, which is so necessary for the implementation of goals and success in the implementation of the management strategy. Fundamentals of management accounting and budgeting usually involve building a cost management system in an enterprise. In order to optimize the costs of the enterprise, management cannot be reduced to a simple reduction. It is also necessary to take appropriate steps to achieve a certain level of income, profit, and, if necessary, take appropriate measures. On a business-wide scale, this explains cost management activities at the level of each department: cost centers, revenue centers, profit centers, and so on.

Pengaruh Sistem Akuntansi Manajemen dan Strategi Bisnis Terhadap Kinerja Manajerial

A company leader must be able to improve his managerial performance, so that the company he leads can have high performance. Aspects that can affect managerial performance include management accounting systems and good business strategies. This study aims to determine the effect of management accounting systems and business strategy on managerial performance. The focus of this research is management accounting systems, business strategy and managerial performance. The research method used is descriptive verification. This research was conducted at Citradream Hotel Cirebon with a sample of 33 hotel employees. Data was collected using a questionnaire and analyzed using multiple regression. Based on the research results, it was found that there was a significant influence of business strategy and management accounting systems on managerial performance at Citradream Hotel Cirebon, either partially or simultaneously. The contribution made by business strategy and management accounting systems to managerial performance at Citradream Hotel Cirebon is 61.7%. The conclusion from this study is that the management accounting system and business strategy affect managerial performance.

The Effect of Organizational Commitment, Decentralization and Management Accounting Systems on Managerial Performance with Organizational Culture as a Moderating Variable

This study aims to determine the effect of organizational commitment, decentralization and management accounting systems on managerial performance with organizational culture as a moderating variable. This research method is included in quantitative research with primary data sources. Data analysis in this study used the WarpPLS Version 7.0 data processing tool. The results showed that Organizational Commitment, Decentralization and Management Accounting Systems had a positive and significant effect on Managerial Performance, Organizational Commitment and Management Accounting Systems had a positive and significant effect on Organizational Culture. Decentralization has no significant effect on Organizational Culture. Organizational Culture has a positive and significant effect on Managerial Performance. Organizational Culture does not moderate Organizational Commitment, Decentralization and Management Accounting Systems on Managerial Performance.

Organizational and individual contingency factors and management practices

It has been argued that the decision-making process has never been more important (or complex) as it has increased the amount of unstructured information, increasingly hostile competition and frequent innovations. In this context, the Global Management Accounting Principles (GMAP) were proposed with the objective of assisting managers of different organizations to evaluate and improve their Management Accounting System (MAS), improving the information provided and, consequently, decision making. In this way, the aim of this study consisted of analyzing the associations between organizational and individual Contingency factors and management practices from the perspective of the GMAP of the industries in Paraíba. To this end, managers’ data from 86 industries were acquired through the application of an electronic questionnaire during the year 2020. The data analysis was performed using Spearman's correlation. Regarding organizational contingencies, positive and significant associations were found between strategy and practices related to GMAP. However, the size didn’t show significant association with the adoption of such practices. Regarding individual contingencies, negative and significant associations were found between the manager’s time in the position and one of the management practices. Additionally, the manager’s education showed positive and significant association with some practices related to GMAP. In conclusion, no significant associations between manager’s age and management practices were found. This study contributes to the literature by analyzing the antecedents of contemporary management practices from a new perspective (the GMAP). Little is known about the factors that contribute to an effective management accounting function in light of the guidelines provided by the GMAP structure. Likewise, these results may be of interest to professionals as they provide important reflections on the contribution of GMAP to management, as well as they point to the need for such practices to be implemented considering the specific context of each organization.