What Are the Different Types of Management Accounting Systems?
Management accounting system (MAS) is an internal management system that uses management accounting principles to make decisions, control, and evaluate corporate activities. In most cases, management control system (MCS) or organizational tool system (OT) in Western management control theory has the same meaning as MAS. There are many management tools (or components, the same below) that make up the management accounting system, such as the budget system, BSC system, EVA system, ABC / ABM system, and strategic cost management system (SCM). These system tools are applied to the actual management of enterprises to varying degrees.
Management Accounting System
discuss
- Chinese name
- Management Accounting System
- Function
- Make decisions about corporate activities
- Make up
- Various management accounting tools
- System
- Budget system, BSC system, EVA system
- Management accounting system (MAS) is an internal management system that uses management accounting principles to make decisions, control, and evaluate corporate activities. In most cases, management control system (MCS) or organizational tool system (OT) in Western management control theory has the same meaning as MAS. There are many management tools (or components, the same below) that make up the management accounting system, such as the budget system, BSC system, EVA system, ABC / ABM system, and strategic cost management system (SCM). These system tools are applied to the actual management of enterprises to varying degrees.
- people think that:
- (1) After more than a century of development, the management accounting system has also made considerable progress and has been continuously improved, but the core function of the management accounting system-"information provision and management control"-has not changed much. For example, the management accounting system at the beginning of the last century is mainly composed of three elements: standard cost system, traditional budget, variance analysis and POA / ROE for performance evaluation. They cover the two functions of management accounting information provision and management control. No matter what new management tools have been developed, such as ABC / ABM, BSC, EVA, etc., the core functions of the management accounting system have not changed;
- (2) The management accounting system is composed of various management accounting tools. Each management tool is a product of higher environmental requirements that improve the function of the management accounting system. The development of management tools has enriched the service content of the management accounting system. The ABC method replaces traditional cost calculation methods, which enriches our understanding of costs, increases the function of internal cost planning and control, and promotes the further development of the functions of the management accounting system;
- (3) The function of management accounting system should have its function boundary. As a supportive management system, it cannot replace internal management such as strategic management, production management, and administrative management. For example, what we call the strategic management accounting concept, it means To play the role of management accounting system, it should be viewed from the perspective of corporate strategy, not to replace strategic management itself. This is an important sign that management accounting system is different from organizational tool system (OT). (According to the latest theory of organization tools in the West, organization design, organization goals, and strategies should be one of the core contents of management control systems. Its theoretical perspective is organization cybernetics, and management management systems are regarded as organizational control packages. control package).