STRATEGIC MANAGEMENT ACCOUNTING: RESPONS AKUNTANSI TERHADAP TANTANGAN BISNIS MASA DEPAN

Abstract

Traditional management (cost) accountant frequently are critized as the “cost world accountant”, who overemphasize their work on how to control cost. The activities was relevant at the beginning of its introduction, the industrial revolution and great depression era, but might create a misleading message in the knowledge economy era. The knowledge economy era is characterized by a rapid and turbulent change in business environment, which eventually demand a huge amount of preseverence, speed, flexibility, knowledge and creativity in managing the business. Therefore value creation is the primary concern in today’s business organizations. In contrary, the use of traditional management accounting which overemphasizes on cost control, cost efficiency and cost reduction can limit the company’s ability and horizons to create value for the future. Overcontrol over cost can increase profit in the short run, but can also destruct the value of business in the long run. If you can reduce the cost until zero, you can not create value at the same time. The traditional management accounting also has another limitation; its ignorance to people factors and the role of behavioural changing in organizations. This paper will analyze the development of management accounting in responding the changing nature of business environment.