ARTICLE REVIEW 1

Ahid, M., & Augustine, A. (2012). The Roles and Responsibilities of Management Accountants
in the Era of Globalization, 12(15).

The article written by Ahid, M., & Augustine, A. (2012), entitled “The Roles and
Responsibilities of Management Accountants in the Era of Globalization” discussed the roles and
responsibilities of management accountants, their challenges and the perception of the public
towards accountants in the era of globalization. Clearly stated in this article that management
accounting in era globalization is not only providing information to management, but it even
need to be part of the organization in the process of decison making and strategic planning. The
function of management accounting becomes more crucial in the organization and it has
expanded into the areas of strategic management, performance management and risk
management. This article also explains that management accountants involved in four main
activity in the organization which is planning, directing, controlling and decision making. By
carrying out this activities, thay can help the top management to run the organization effectively
and efficiently.

Through the middle until the end of this article, Ahid, M., & Augustine, A. (2012),
make a clear comparison of the differences in functionality, position and role of accountant
managers before and after globalization. During globalization, management accountant is located
throughout the company and works in the cross functional teams which consist of employees
presenting various function of the organization. Compared to previous, the role of accountant
managers is limited to work in the accounting department and they used to report to the
controller who is responsible of general financial accounting, managerial accounting and tax
reporting. Additionally, advancement in technology such as software and other tools have
improved management accounting activities at companies and help businesses go to global. The
improvement of technology also helps businesses operated systematically and automatically.
Compared to business before globalization, the scope of accounting management task only need
to provide report for internal use of an organization with only a little or no interaction with
customer. Therefore it does not requires a complicated technologies or tools. Furthermore,
globalization has also changed the role and image of accountants. Previously they were seen as

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ordinary position in organization but now they play a bigger role of strategic management
accounting and resource management. With these new concepts of roles, management
accountants give more values to organization by providing more extensive information as well as
managing resources, activities and people effectively to fulfill the organization objectives. In the
conclusion part, the author summarized the article by mentioning again that the role of
management accountant is not only book keeper or information provider. So that they should
have enough training and equiped with knowledge and skills in order to become significant
decision maker, strategic planner and market analytic.

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 ARTICLE REVIEW 2

Ahmad, K. (2017). The implementation of management accounting practice and its relationship
with performance in Small and Medium Enterprises sector. International Review of
Management and Marketing, 7(1), 342–353.

The article by Ahmad, K. (2017) discussed the implementation of Management

Accounting Practices (MAPs) and its relationship with performance in Small And Medium
Enterprises (SMEs). The introduction of the article defined MAPs as an application that provides
financial & non financial technical information to organization in order to improve operational
efficiency and achive optimal performance. Stated also that there have been numerous studies
conducted to examine the importance of MAPs and most of the findings indicate that the use of
MAPs is essential for business sustainability. However, due to unclear evidence on the use and
provision of MAPs in SMEs and their links with performance, then it has led to the
implementation of this study.

The topic between MAPs and SMEs is discussed firs at the early stage of the article to
enable readers to see the significant on the use of MAPs by SMEs. According to Ahmad, K.
(2017), SMEs constitute a large number of establishments in most developed and developing
economies around the world. On average, this sector comprises more than 98% of the total
number of businesses in most countries such as in the U.K, U.S, Japan and ASEAN. With such a
large numbers of SMEs, it has become an important contributor to econommy in terms of income
generation, enterpreneurship, job creation and employment and also become a medium for
poverty reduction. Despite the important of SMEs, some previous studies have been conducted
to study the implementation of MAPs in SMEs. Most finding from the studies indicate that there
is limited use of MAPs in SMEs and this concluded that SMEs utilized less complex systems and
were less likely to consider the use of sophisticated costing system in their organization. The
article then discussed further on the evidences on MAPs effectiveness in enhancing business
performance. Ahmad, K. (2017) stated that some previous studies have been conducted to
measure the effects of MAPs and performance. For example, Chand and Dahiya (2010) who
explored MAPs in Indian small and medium hospitality enterprises suggested that management
accounting techniques have a great impact on different firm’s aspects especially on cost

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reduction and quality improvement. Most of the finding indicates that certain MAPs are found to
have significant relationships with business performance. However, there is a little number of
studies on relationships between the implementation of MAPs and performance within the SMEs
context and this has led to the implementation of this study.

The article later focuses on the research method that used for the purpose of studying
the application of MAPs in SMEs. The survey method was used for this purpose and it involved
the total of 160 respondents from SMEs within Malaysia which focusing on manufacturing
sector. It is stated that two (2) main variables was developed for exploring the relationship
between MAPs and performance wich is MAPs usage and MAPs performance measures whereas
five (5) categories of MAPs are used to indicate the MAPs usage in SMEs which is costing
system, budgeting system, PMS, DSS and SMA and the manager perceptions in achieving the
research aim is used for the purpose of MAPs performance measures. The article then shared the
result of the study on the implementation of MAPs in SMEs. The result shows that the use of
basic MAPs is higher than the sophisticated MAPs and it is dominant to a small firms. It also
shows that medium firms have a higher use of the overall MAPs than small firms. This result
eventually tells us that the larger size of firms will generally have higher use of MAPs. It also
indicated in the study that two (2) types of test are used to see the significant associations of
MAPs and performance which is The Spearman Test and Mann-Whitney U-test. The result of
the test shows that the traditional MAPs indicated by costing system, budgeting system and PMS
have significant relationships with financial performance. It also indicate that the use of costing
and SMA lead to an increase in the business operational performance.

The summary part of this study shows that the uptake for basic MAPs was higher than
for more sophisticated practices. The study also indicate that the larger size of the firms, the
higher usage of MAPs. Larger size of firms also make a greater use of sophisticated MAPs than
small firms. Result from the test suggest that basic MAPs indicated by costing system, budgeting
system and PMS have significant relationship with financial performance of SMEs. Meanwhile
the use of costing and SMA lead to an increase in the business operational performance. This
study also suggests the need for further research on MAPs and performance in SMEs. To
improve an understanding of the effect of MAPs and performance, future research should
consider additional variables that could have moderating and mediating roles on the relationship

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between MAPs and performance. This research was carried out in small number of SMEs from
small and medium groups due to the difficulty to obtain fast and valid responses. Higher sample
size can increase the validity and generalization of the results.

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 ARTICLE REVIEW 3

Soekardan, D. (2016). An Analysis Of Activity Based Costing: Between Benefit And Cost For
Its Implementation. International Journal of Scientific & Technology Research, 5(6).

The article written by Soekardan, D. (2016) comprehensively presented an analysis of

activity based costing : between benefit and cost for its implementation. Overall, the outline of
the article involved an introduction, a comprehensive details of literature review on activity
based costing (ABC) and the author end the article by stating a short information summarizing
the whole study with solution to address the weaknesses on the ABC. Soekardan, D. (2016)
stated that in new challenging of business environment today, managers need the information
that is timely & relevant to make the strategic decisions. For that purpose, an efficient cost
system is required to provide managers with much of the information they need. Basically, they
need system cost to enable them to assess of inventory, estimate cost of production and to
provide information for making strategic and operational decisions. The authors also highlighted
that in managerial accounting system, ABC and traditional costing are two different methods for
allocating indirect (overhead) costs to products. Traditional costing is more simplistic and less
accurate than ABC, and typically assigns overhead costs to products based on an average rate.
ABC is more complex and more accurate than traditional costing. This method first assigns
indirect costs to activities and then assigns the costs to products based on the products’ usage of
the activities.

Soekardan, D. (2016) later discusses the literature review on the the topics of ABC
including allocation of product cost, cost allocation system alternative, what is ABC, benefit and
advantages of ABC, the difference between the traditional cost system and system ABC as well
as classification of activities in the ABC. According to Soekardan, D. (2016), providing an
accurate product cost infomation is important in helping managers to make a better decision. The
study states that traditional manufacturing covers routine production process with relatively
simple labor intensive. Meaning that, for the traditional manufacturing environment, the
allocation of the costs using direct labor hours or direct labor costs is sufficient. But, in
manufacturing environment with much used of machine, the role of labor hour decreased.

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Therefore, product costing is based on traditional system will cause the factory overhead cost is
high. This theory was supported by (Cooper, 1992) through his studies which stated that the
increasing diversification of product volume, size and complexity, product costs are calculated
using traditional cost systems will be greatly distorted.

Comment on cost allocation system alternative, Soekardan, D. (2016) explained that

changes in the manufacturing environment require a new approach in the cost system and among
the alternative approach is ABC. ABC provides advantages by providing product cost
information more accurately and helps to identify the behavior of the product cost. However,
based on the survey, it was found that the used of ABC was not widespread. Based on (Hughes,
2003) indicated that about 20% of companies are reported to have adopted the ABC & in another
study reported that about 21% have adopted it in the determination of product cost. This shows
that the development progress of the ABC is relatively slow. Other than that, Soekardan, D.
(2016) discussed the definition of ABC based on the previous studies. For example, (Wayne J.
Morse, James R. Davis and A. L. Hartgraves , 1991) define of the Activity-Based Costing
(ABC), as a system of allocation and reallocation of costs to cost objects on the basis of activities
that cause costs. (Garrison, 1991) define ABC as a method for calculating the cost that creates a
group fee for each event or transaction (activity) in an organization that serves as a booster
charge. As the conclusion, ABC system trace costs of product base on the product’s used of the
activity.

Next, Soekardan, D. (2016) has commented on the details explaining the benefits of ABC
system for the management of the company and among the benefits is, analysis report from ABC
can highlight how truly expensive manufacturing process which is in turn can stimulate manager
to reorganize process, improving quality and reducing cost. With ABC also, manager can assign
more reasonable price of product in the market. Base on the accuracy of the calculation of the
cost of product, it can assist management in the decision making and allow corrective action
against unnecessary activity. Beside, it also can assist manager to easier to determine whether the
cost are less relevant and to determine the real production volumes that management really need.
Soekardan, D. (2016) also outlined the advantages of ABC in the determination of the cost of
production. First, stated that with ABC, the cost of product are more realistic and the more

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overhead can be traced. Additionally it make it easier to recognize activity that caused the cost
and identify non-value added activity. Finally it can make easier to recognize the complexity of
the product and give a flexible to explore the cost of each activities. Soekardan, D. (2016) finally
describes the difference between the Traditional Cost Systems and System Activity Based
Costing. The most significant difference is, in the traditional cost system, overhead cost is
allocated first to department and second to product and overhead equally applied to the cost of all
products. Whereas ABC focus on the cost of the activity, and how the activities associated with
the product.

From the research that has been done, Soekardan, D. (2016) can summarize some of the
weaknesses exist in the ABC system. Soekardan, D. (2016) firstly found that system ABC
require data collection far more numerous and resulted the difficulties in obtaining the required
data. Secondly, the possibility of a wrong conception by reducing the number of cost drivers
activity, followed by activities to run a business which is numerous, making it difficult to
monitor the activities in the work process. Also stated that ABC system treat all costs as variable
costs since ABC is designed as a tool of strategic decision makers in the long term. Finally, this
study conclude that method of calculating the cost by using ABC system has weaknesses that can
suit for management long term decision and not suitable for decision in the short term.
Soekardan, D. (2016) then give recommendation for company to keep continuing use the
traditional system and experiment with ABC separately, e.g by using it first for one product line.

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 ARTICLE REVIEW 4

Talebnia, G., Baghiyan, F., Baghiyan, Z., Moussavi, F., & Abadi, N. (2017). Target Costing, the
Linkages Between Target Costing and Value Engineering and Expected Profit and
Kaizen. International Journal of Engineering Management, 1(1), 11–15.

The article written by (Talebnia, Baghiyan, Baghiyan, Moussavi, & Abadi, 2017) used
financial expertise of thousands of teachers the periode 2011-2012 to study the linkages between
Target Costing and Value Engineering and Expected Profit and Kaizen. Overall, the outline of
the article is divided into 4 main sections comprising introduction, hypothesis, data and
conclusions. In introductory part, the authors has outlined some of the key terms including target
costing, kaizen costing and value engineering. According to Talebnia et al (2017), target costing
is a disciplined process for determining and achieving a full-stream coast at which a proposed
product with specified functionality, performance and quality must be produced in order to
generate the desired profitability at the product’s anticipated selling price over a specified period
of time in the future. While value engineering is defined as a systematic method to improve the
value of goods or products and services by using an examination of function. Talebnia et al
(2017) next defined Kaizen costing as the maintenance of present cost levels for products
currently being manufactured via systematic efforts to achieve the desired cost level.

Five hypotheses have been used in the study where the first is target costing has a direct
relationship with the customer. The second hypothesis is gap between current costs and expenses
allowable costs related to target image exists. While the third hyphotesis is how to reduce costs
related to product design, the product has a direct effect on target costing and the forth is kaizen
costing, value engineering and achievable goal is directly related and the last hypothesis is
product lifecycle costs are directly related to the objectives. The author also has described in
detail the steps involved in the target costing process which is conduct research followed by
calculate maximum cost, engineer the product and ongoing activities. According to Talebnia et al
(2017), the first step in conduct research is to review the market place, so that business has a
good idea of the target price at which it can sell the proposed product with a certain set of
features, and how it must alter the price if it drops some features from the product. In the second

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process, the company will calculate the maximum target cost that the product must achieve
before it can be allowed into production. In the next process, the product is designed to meet the
cost target, which will likely include a number of design iterations to see which combination of
revised features and design considerations results in the lowest cost. The author explains that
activity of kaizen costing is occurred in the fourth process where this will further reduce the price
of the product over time, in response to increases in the level of competition. The study
concluded that according to the responses given, all the hypotheses listed previously in the data
description was confirmed. It is based on the number of respondents who give positive feedback
which is between 60%-100%.

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 ARTICLE REVIEW 5

Maskun., A. (2017). Analysis on Budgetary Slack. International Journal of Advanced Research,

5(10), 954–959.

The article namely “Analysis on Budgetary Slack” by Maskun., A. (2017) aimed to prove
that ethics, bureaucratic culture, social pressure and individual capacity have an effect on
budgetary slack among the budgeting executives at the Coordinator Agency for Region II of East
Java Province. The abstract of this article completes with the definition of budgetary slack,
background of study on the factors influencing budgetary slack and the authors also include the
notion on the purpose and importance of the study. The authors use several keywords such as
ethics, bureaucratic culture, social pressure and individual capacity to allow readers to search for
related literatures. In the introduction section, Maskun., A. (2017) listed some views from the
previous study on budgeting slack which are by Douglas & Wier (2000), Mardiasmo (2001),
Van der Stede (2001) and Dunk & Perera (1997) (Budgetary slack is a function of ethics; of
budget culture, institutional strategy, institutional culture, general culture, and participation in
budgeting). Maskun., A. (2017) also lists the views of previous studies on factors influencing
budgeting slack which are by Blanchette et al. (2002) (Budgetary slack is ethical and thus, giving
positive effect. Other finding is that bureaucratic culture is influential to budgetary slack, and this
activates a predisposition to overstate slack (assuming that budgetary slack is ethical). Maskun.,
A. (2017) also cites views from Lau (2001) (Confirmed that control system has negative and
significant effect on budgetary slack among production managers).

The author then clearly illustrated the method used for this research. The sample of the
research is identified as 236 respondent include all executives who serve at The Coordinator
Agency for Region II of East Java Province and who have involvement in budgeting process of
public sector. Research also uses 37 variables (indicators) while analysis technique is SEM
(Structural Equation Model). The findings of research are examined clearly to show the
relationship of each variables. The use of table and structural figure certainly highlights the
relationship of variable and enhance understanding of readers regarding the factors influencing
budgetary slack. Maskun., A. (2017) clearly depicted eacf factor by explaining the relationship

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of each factor comprises of ethics, bureaucratics culture, social pressure, individual capacity with
how it influences budgetary slack. The author mentioned that in real world, budgetary slack is
possible because a factor of uncertainty is always there and further recommended that slack
should be controlled because it may risk local government with loss and bad mentality.

Later in the conclusion part, the author summarizes the findings of the study as follows.
The point that is first highlighted is budgetary slack is not ethical. The second point is, the effect
of bureaucratic culture on budgetary slack can be interpreted in such way that the higher is
education background, the lower is paternalistic culture. The higher is paternalistic culture, the
lower is budgetary slack. (3) The effect of social pressure on budgetary slack has positive
direction, and it means that external control system on public organization is not yet effective.
(4) Individual capacity does not influence budgetary slack. Lacking of knowledge about budget,
for example performance budget, local financial system, and local strategic plan, has caused
respondents to lack of understanding and knowledge in preparing revenue budget. This lack
determines the failure to exploit the optimum potential of the local. The lack of training leads to
the inadequate knowledge required by individuals to work on their main tasks and functions. In
this case, the lack of knowledge and information will increase predisposition to create budgetary
slack. (5) The culture of humility as shown by paternalistic culture among bureaucrats, has
faded. The reluctance to reject the requirement of superior is not longer proportional and is
experiencing transition to the culture of open communication. (6) The effect of ethics on
budgetary slack through individual capacity is not significant. The more is respondents
considering budgetary slack as unethical, the lower is predisposition to create budgetary slack.
(7) Basically, whether someone is ethical or not is affected by individual factor and situational
factor, which proves that individual capacity has positive effect on the decision of individual to
consider budgetary slack as ethical. (8) Social pressure is a control system. Accounting system as
a control system would reduce predisposition to create budgetary slack.

Lastly, the article has cited appropriate list of literatures but most of the studies can be
considered outdated based on the date of publication of this article, and the author should
consider providing more recent literature (five years prior to year of publication) on the topic of
interest to increase reliability of information.

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