CHAPTER 1

1. CHAPTER 1 Management, the Controller and Cost Accounting

2. Management • Management is consists of three group : (1). Operating Management (2). Middle Management (3). Executive Management • Management sets objectives to be achieved by integrating its available resources with the abilities employees • But for achieving success, management have to do planning, organizing and controlling

3. Authority, Responsibility and Accountability • In a large company, all of tasks are done by many people. Every level of management order authority, responsibility and accountability. • The Organization Chart is very important for explaining about responsibility accounting. Explain with figure 1-2 page 1-5

4. The Controller’s Participant • The controller is the executive manager responsible for the accounting function. • The position of controllers are very vital in the company with their role to manage or analyze costs • The role of Cost Accounting shows responsibility for planning and controlling activities

5. Certification and Ethics • Certified Management Accountant (CMA) • Certified in Financial Management (CFM) • Institute of Management Accountant (IMA) issued a code of ethics • Standard of Ethical Conduct for Practitioners of Management Accounting and Financial Accounting

6. Standard of Ethical Conduct for Practitioners of Management Accounting and Financial Management • Competence • Confidentiality • Integrity • Objectivity • Resolution of Ethical Conflict

7. Other Contribution for developing cost accounting • Professional Organizations • University Research • International Organizations • Public Sector • National Level • Cost Accounting Standard Boards (CASB) have a significant influence on cost accounting

8. GROUP DISCUSSION • 1. Diskusikan fungsi-fungsi dari departemen biaya. 2. Mengapa anggaran merupakan alat penting dalam penetapan biaya