Factors of Limitations on Contributins and Prosess

Management accounting is not dependent on accounting principles. SEC and FASB to set accounting procedures must be followed to report prosess of financial. Output and financial accounting must be clear and limited. Only the economic activities that meet certain qualifications as input and process, must follow the accepted method by the public. 

Unlike financial accounting, management accounting has no special institutions that govern the format, content, rules in selecting inputs and processes, and preparation of financial statements. Managers are free to choose whatever information they want-provision can be justified on the basis of cost-useful analysis (cost-benefit analysis).

Today in the conventional charging is becoming obsolete and switch to event-based charging / activity-based costing system (ABC-system). Management accounting in the development of many contemporary issues in management techniques were adopted, such as the method just in time (JIT), total quality management (TQM), target costing, and customer orientation. 

 Manager's performance appraisal is now beginning to shift. When first assessing the performance of a manager is only from the financial perspective, but now to obtain a more comprehensive picture of the two perspectives should be known as a balanced scorecard. Performance assessment will be done from two sides, namely financial (financial) and non-financial such as assessment of customer / customer, growth and learning, as well as internal business processes. Balanced scorecard is the latest issues in management accounting. 

Balanced scorecard is a strategic management system that outlines the mission and strategy of an organization into operational objectives and performance benchmarks for four different perspectives, namely financial perspective, customer perspective, internal business perspective, and learning and growth


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