Accounting behavioral (behavioral accounting) is a very broad field. Empirical research in the development starts from the field of management accounting and later into other fields. In their analysis is supported by many existing theories in other disciplines. An interesting finding in assessing the field of behavioral accounting research is to link with management accounting (managerial accounting). Behavioral accounting research in the field of management accounting was first developed budgeting issues.
To better understand the implications of behavioral accounting research (behavioral accounting research / BAR) to the development of management accounting (managerial accounting), the assessment will begin from the development of behavioral accounting, management accounting, behavioral accounting research in management accounting, such as budgeting, balanced scorecard (BSC), just in time (JIT), total quality management and activity based costing system (ABC system).
Accounting Behavior and Development
Ikhsan (2005) states that the purpose of behavioral science is to understand, explain, and predict human behavior to the established generalizations about human behavior that is supported by empirical impersonal collected through an open procedure, either for review or replication and can be verified by scientists others who are interested. Next Ikhsan (2005) explains that behavioral accounting provides a framework which is based on a technique that aims to (1) to understand and measure the impact of business processes towards the people and corporate performance, (2) to measure and report the behavior and opinions relevant to the planning strategic, and (3) to influence opinion and behavior in order to ensure successful implementation of company policy. Behavioral fields in accounting can be said is still new compared to financial accounting. Topics this behavioral development began in the 1950s. In June 1951 Controller-ship Foundation of America sponsored a study to investigate the impact of the budget (Ikhsan, 2005). This research was initiated from Argyris (1952), which examines the relationship between human beings with the budget and then followed by other researchers. Early development of behavioral research has been reviewed in a study by Lord (1989). Lord examines the development of behavioral accounting research (behavioral accounting research) from 1952 until 1981. Lord (1989) classifies the development of research results related to the field of behavioral accounting research into six research focus, among other organizational context of accounting Dalan (accounting in an organizational context), budgeting (budgeting), the psychology of thought (early thoughts psychology), human information processing (human information proccesing), contingency theory (contingency Theory), and conferences and events (conferences and events). Studies Burgstahler and Sundem (1989) is almost the same with the study of Lord (1989), which examines the development of behavioral research in 1968-1987. Reviewed research results taken from articles published in three journals, The Accounting Review (AR), Journal of Accounting Research (JAR), Accounting Organizations and Society (AOS). Good article written by Lord (1989) and Burgstahler and Sundem (1989) is an invited paper in the framework of the first publication of the journal Behavioral Research in Accounting. It started from embryo research Argyris (1952) who first focused on the budget until it is now developing in other fields, such as auditing, tax and financial accounting.
According to Burgstahler et al. (1989) field of behavioral research has been developed as follows. First, behavioral research methods used for accounting issues without adopting some of the underlying behavioral theory. Second, the model or theory of behavioral adoption. The third phase is testing the behavioral model to test the model accounting such as lens Brunswick. Researchers in Indonesia are also interested in behavioral accounting research. Behavioral research field is also the center of attention in the event of a national seminar accounting (SNA) in Indonesia, held every year by IAIKAPd the Indonesian Institute of Accountants (IAI) in cooperation with educators Accountants Compartment (KAPd). Topic of study results in this seminar is divided into five, namely financial accounting and capital markets, accounting and behavioral management; public sector accounting and taxation, information systems, auditing, and ethics, and accounting education and accounting sharia. Results of research in the field of management accounting into one discussion with behavioral accounting for these two fields together to discuss about human beings. Burgstahler and Sundem (1989) tells there are several factors that make behavioral research in accounting in particular have difficulty, namely broad fields, complex variables, the behavior is a specific situation, another embodiment of the interrelation variables are some of the legal behavior of fully general, the meeting point internal validity and external validity, academic control systems, and qualitative evaluation. Behavioral research in accounting research can use three kinds of methods, including field studies, experiments, and surveys each have their advantages and disadvantages. All three of these methods can complement each other by applying multiple methods.
Accounting Management
MAS is part of accounting which aims to help managers to perform three main functions, namely planning, controlling, and decision making. The presence of management accounting or management information systems in the enterprise is a system that will provide information to management to assist the internal parties to achieve organizational goals. Techniques in management accounting assist management in carrying out management functions. For example, budget (budgets), analyzing the cost, volume, propit (CVP), analysis of variance, and the selection of an appropriate charging system for determining the selling price. Selection of this method will affect the accuracy of the imposition of costs to the product so that managers can properly set prices. Thus, to excel and compete on price.
Nowadays the conventional charging is becoming obsolete and switch to a charge based on the activity / activity based costing system (ABC-system). In the development of management accounting a lot of contemporary issues in management techniques were adopted, such as the method of just in time (JIT), total quality management (TQM), target costing, and customer orientation. Assessment of performance of current managers have started experiencing a shift. If the first assess the performance of a manager is only from a financial perspective, but now to get a more comprehensive picture must be from two perspectives known as the balanced scorecard. The performance evaluation will be done from two sides, namely financial (financial) and non-financial, such as rating customer / customer, growth and learning, as well as internal business processes. Latest articles on management accounting was written by Birnberg G. Jacod (2000) that discusses the role of behavioral research in management accounting education in the twenty-first century. Birnberg explained that management accounting material into three periods after the Second World War ended include the cost accounting period (the cost-accounting period), modern management accounting period (the modern management accounting period), Postmodern management accounting period (the post-modern management accounting period .) The focus of the latest in management accounting as described by Hansen and Mowen (2005) is the activity based management, customer orientation, cross-functional perspective, total quality management, time as the competitive element, efficiency and e-business. Accounting management is very closely related to humans. Studies or studies in the field of management accounting to get attention for research in the field of behavioral accounting. Failure in terms of actual performance result of the behavioral aspect. Behavior (behavior) is the actions (actions) or reaction (reaction) of an object or organism (Jogiyanto, 2007).
Behavior in Management Accounting Budgeting
Budgeting is part of the management accounting materials, which play a part in the planning and control as two inseparable parts. Planning means looking ahead, which implies an act of determining what measures should be taken to realize a particular purpose. In contrast, the control is looking back, which means assessing what has been produced and compared with plans that had been developed (Hansen & Mowen, 2005). The purpose of the budget is to provide information that can improve the quality of decision making, as the standard for evaluation of performance and improve communication and coordination of inter division. Articles are arranged in the form of operating budgets (such as sales budget, production, purchase of materials, labor, overhead, selling and administrative expenses, ending inventory and cost of goods sold) and financial budgets (such as cash flow budgets, balance sheets, and capital expenditures). Budget used to control the performance of workers, the simplest involves four steps.
1. Standard setting by management
2. Establishment of standards by groups that controlled
3. Operating performance
4. Reporting of results with positive or negative reward is determined by management
Research in the field of management accounting research begins with Argyris (1952), the topic is budgeting, which is to see man's relationship with the budget. Supported by theory and empirical findings from organizational behavior and social psychology, Argyris (1952) conducted a field study about the budget process. Covaleski and Dirsmith (1986) interviewed 56 managers at six hospitals. They found that budgeting is used as a political process by managers to rationalize and legitimize the symbolic and ritualistic action. Other field studies by Czarniawska-Jorges and Jacobsson (1989) explains how the budget process relating to the cultural context of the organization. Brownell (1982) summarizes some of the accounting and nonakuntansi studies showing the relationship between job and organizational characteristics with the budget process. Young (1985) designed an experiment to directly observe the slack behavior and found that risk preferences and social pressure actually affects the budget slack.
Schiff and Lewin (1974) expressed the opinion that Birnberg and Nath behavioral research in managerial accounting is divided into three broad categories, as follows.
1. Attempts to determine the model for all parts of the human subsystem
2. Investigations into the behavioral dimensions of management control process
3. Studies of the behavioral perspective on the effects of firm characteristics on the shape and functions of management information systems. Several recent behavioral accounting research in the field of management accounting in Indonesia have been seminars in the National Seminar on Accounting (SNA). Rahman et al. (2007) examined the influence of performance measurement system to the clarity of roles, empowerment, psychological, and managerial performance by partial least square approach. Cahyono et al. (2007) examine the moderating influence of management control systems and innovation on performance. Wijayantoro et al. (2007) investigated the relationship between management control system with disfunctional behavior: national culture as moderating variables (study of managers of manufacturing industries in Central Java). Yufaningrum et al. (2005) analyzed the effect of budget participation on managerial performance through the budget goal commitment and job relevant information (JRI) as an intervening variable. Sumarno (2005) examined the influence of organizational commitment and leadership style on the relationship between budget participation and managerial performance.
Balanced Scorecard
Balanced scorecard is the latest issues in management accounting. Balanced scorecard is a strategic management system that describes an organization's mission and strategy into operational objectives and performance benchmarks for four different perspectives, namely financial perspective, customer perspective, internal business perspective, and learning and growth (Wijaya Single, 2003). Comprehensive performance measurement is called the balanced scorecard. It was first introduced by Kaplan and Norton (1992) regarding the benefits of performance measurement from two perspectives, namely the financial and non financial (customer relations, internal business processes, learning and growth).
Kaplan and Norton (1996) writes about using the balanced scorecard as a strategic management system. Balanced scorecard can serve as a tool to monitor whether the company's strategy has been implemented and also to assess whether the strategy has been precisely defined. One example of research on this topic conducted by Lipe and Salterio (2000).
Just In Time (JIT)
Just In Time (JIT) is a philosophy that focuses on eliminating wasteful activities by producing products according to consumer demand and just buy the materials in accordance with production needs with the strategic goal to increase profits, improve quality, inventory control, and improve delivery performance (Supriyono, 1999). An example of research in JIT done by Balakrishnan (1996) examine firms that adopt JIT inventory system and its influence on Ratio Return on Assets (ROA). This research is motivated by a world-class companies in America that began to adopt JIT because it can reduce the cost. So, any consideration of cost and benefit. The fall in value of inventory means lower cost.
Total Quality Management
Total quality management (Total Quality Management / TQM) is a systems approach to integrate all functions and processes within an organization for achieving quality improvement goods or services on an ongoing basis in order to achieve customer satisfaction (Supriyono, 1999). To help achieve Total Quality Management / TQM should consider the product life cycle such as design and development, procurement of inputs, production, marketing, distribution, and service.
Ittner (1995) research on Total Quality Management (TQM) and the choice of information and its reward system. Data taken from samples of automobile and computer industry companies from Germany, Canada, Japan, and America in 1991 who has been practicing quality management / Quality Management. Research conducted a survey method.
Activity Based Costing System
Activity based costing is a system of charging fees based on the activity. Activity-based Costing (ABC) has been promoted and adopted as the basis for strategic decision-making and to improve the performance gain (Bjornenak and Mitchell, 1999). ABC information is now also widely used to assess continuous improvement and to monitor process performance. ABC can be accepted widely and quickly because it is believed to have many advantages compared with conventional charging methods.
In an experiment, Drake et al. (1999) found that innovative activity can produce the level of corporate profits higher or lower if the workers have information on the ABC. Gunawan (2007) examine the activity based costing analysis of the relationship with the improvement of financial performance which is the empirical study on the Jakarta Stock Exchange. The test results found no empirical evidence that supports the analysis and previous research on the condition that allows to get the benefit of ABC. The relationship between the scope of the use of ABC and an increase in the ROI was not affected by specific factors identified.
Behavior Implications of Accounting Research, Development Of Management Accounting
Through behavioral accounting research, theories, concepts, and current issues in management accounting can be tested empirically the benefits of the new theories of performance improvement in strategic decision making. With the results of empirical research in management accounting is to assist the development of management accounting. The management became convinced of the new concepts developed will help the main functions of management, including planning, controlling, and decision making. The issue - the latest in management accounting issues, such as activity based management, customer orientation, cross-functional perspective, total quality management, time as competitive element, efficiency and E-business, ABC system, and balanced scorecard participate enrich the research in the field of behavioral research . Between management accounting and accounting behavioral research there was a relationship because of success in providing management accounting information is highly dependent on human factors in behavior. Behavioral accounting research was first developed from the field of management accounting, ie areas covered are budgeting. MAS can be said to contribute a large part in accounting behavioral research. The field of management accounting is closely related to the behavior of managers and all staff of the organization. The achievement of the company's vision is dependent on cooperation between various parties, both from the company's internal as well as good cooperation with the ekstrnal company.
conclusions:
from the above explanation then I can take the following conclusion:
Behavioral accounting research (behavioral accounting research / BAR) is an emerging research field. Behavioral accounting research in the field of management accounting such as budgeting study initiated by Argyris (1952) who conducted a field study about the budget process. In the development of behavioral accounting research now in the field of management accounting has developed in the research and testing of new concepts in management accounting. The results of behavioral accounting research that tests new concepts in management accounting such as activity based management, customer orientation, cross-functional perspective, total quality management, time as the competitive element, efficiency and E-business, ABC system, and the balanced scorecard is expected to will provide a development of theories of management accounting becomes a better theory and believed its implementation will benefit the company. Through behavioral accounting research in management accounting is expected to give birth new concepts or theories.
INTRODUCTION
ReplyDeleteGROUPING OF VARIOUS ACCOUNTING TRANSACTIONS
PREPARATION OF THE TRIAL BALANCE
WHY THE SUBSIDIARY ACCOUNTS HAVE TO BE PREPARED?
STEPS INVOLVED IN THE SALES BOOK
STEPS INVOLVED IN THE SALES RETURN BOOK
WHAT IS MEANT BY THE CASH TRANSACTION?
LET US SUM UP
FINAL ACCOUNTS
INTRODUCTION
TRADING ACCOUNT
PROFIT & LOSS ACCOUNT
BALANCE SHEET
LET US SUM UP