A successful company will not just pay attention to financial accounting, they also will emphasis on management accounting. The reason is financial accounting can provide information to external users, while management accounting are provide essential data for internal users like a manager to make a better decision for existing operations.On top of, planning, controlling, and decision making is three highly important stages for a company who want to be successful, whilst management accounting also can assistance manager to determine a decision in these three stages.Planning is a process which included what the company want to achieve and implement how a company achieve it. For example, a company’s objective is to maximize shareholder wealth so that the manager of a company will think a greatest potential strategic to achieve it like to minimize the expenses that are not necessary. Because of having clearly strategic planning, the employee of a company can be more certain understanding what their responsibility is and they will cooperate toward to achievement of a common objective.The strategy of controlling is assess the performance in all areas by controlling the department activities.This can let the management verify whether the actual activities is consistency with the planned activities and the capital expenditure for each department.In additional,there are three steps in controlling process which is set up the performance standards,comparing the actual performance with the standard performance and taking corrective action when certainly need.For example, prepare a budgeted financial statement for an activity and compare the actual financial statement with the budgeted financial statement.If it is over budget management has to take corrective action such as control the operation process.With the strategy of controlling process, the organization will be more successful.According to Oxford Advanced Learner’s Dictionary state that decision making is the process of deciding about important decision of an organization. It is the primary function of management to achieve the goal of an organization .It need the specific knowledge with skills and experience in additional to mental maturity. Example of technique : 1. Break-Even AnalysisBreak-even analysis can let management to control what company need to sell annually or monthly to cover the cost to run the business of company.A break-even analysis is finding out total revenue equal to the fixed and variable cost of the company’s business.It known as no profit and no loss or zero profit point.In short, it can help to create success of an organization by using planning and decision making strategy.Firstly, the break-even analysis use the planning strategy by set a target sales to know how much profit can earn at different sales volume.The profit that can be earn will affected when the sales volume exceeds the break-even point..This help the management to plan a target of sales to meet the expected profit level. The selling price of the product is the main factor that can lead to the success or failure for a company’s business because it will affect the profit that earn.Therefore,setting the right price and assess the break-even analysis will help the management to consider whether the ability of consumer, the inventory management and the competitiveness price by the effect of the price level.Furthermore,break-even analysis also help management to set up the product inventory level.The management must make sure that there have enough inventory for sales over a certain period.After the break-even analysis had been done then only the management can plan the quantity of inventory that enough to sale and the quantity of stock that need to be purchase or manufacture at a certain period of time.So that, the management can set up the preliminary stock and plan the schedule for restocking based on cash flow according to the inventory volume by break-even analysis.In sum, the break-even analysis has help in planning of management accounting to make the organization become successful.Furthermore, break-even analysis also helps in making a better decision. When we want to make a decision for an investment then we can use break-even analysis. In consist, there are three steps to know about your financial status through break-even analysis.Firstly, to determine whether it is fixed or variable cost. To determine the behave of cost, when the cost incurred by making sales it is a variable cost and it is fixed cost when the cost incurred by anyway.The next is calculate out what is the break-even which link by calculate the variable cost percentage at the first, then calculate the contribution margin and the lastly calculate the break-even point. The final step is using this information to make a better decision whether to set the sales prices, manage cost and plan for the profit. Following this, break-even analysis can also calculate out the pricing changes that affect the decision making. For example, if the management wants to increase or reduce the price of product per unit, then calculate the volume that need to be sold so as to achieve to break-even point. In short, break-even analysis has help the management to make a better decision that lead the organization to the way of success.In conclusion, the management accounting tool of break-even analysis has helps in planning strategy and making a better decision to make the organization become more successful. 2.Rate Of ReturnRate of return is use to determine the profit and loss on an investment over a period as a percentage annually. In a company which product has a strong competitive, they will use the method of rate of return pricing to fixed the price of the product. It helps the company to reach their setting goal and the return of capital. In fact, the concept of rate of return is resemble with the return on the investment. However, pricing rate of return also has disadvantage that it does not regard the price elasticity and the price of the competition. In sum, the rate of return has use the strategy to lead the organization to be more accomplishment.Firstly, rate of return has use the decision making strategy to make a better decision for company. The management manage to do a better decision on whether to buy stock, bonds, mutual funds, real estate or other asset classes by calculate the rate of return on the investment. Following by this, to calculate the rate of return is current investment divided by the initial investment and the answer should be in percentage. After this, the rate of return on investment will be showed and the management can use this information to make a better decision that beneficial the company. In consist, if the investment make gain and profit for the company then it is good for investment. Conversely, if the investment will bring loss to the company, then management can decided to change the investment method. So that, by using rate of return management can always consider on how or when to make investment and change the investment method. For instance, if the management had make an investment on a stock that had make the large profit over a period of time then the management may decide to purchase more on that stock. Nevertheless, if the investment on stock bring a seriously loss then management has to decide to change the stock and find another potential stock. In short, rate of return has help the in making a better decision that good for the company.To sum up, the management accounting of rate of return is a tool for the management to make a good decision that make the organization become more successful based on the return of an investment.3.Budgetary planning and control systemMoreover, the definition of budgeting represent as a quantitative plan that state in monetary term over a given time of period. Budgeting is a management tool that frequently used by company in planning stage to achieve the company’s objective. A long-term planning usually took many years to achieve. Therefore, in order to make sure the day-to-day operation must not out of context, manager should justify which is the potential problem may happen in future and try to resolve it and design every short-term plan to ensure every activities are coordinate in a company. Usually, the budget will be keep revise/review recently to ensure the budget are set which is matching with the demand of resources.Besides that, budgeting is extremely useful in planning stages as the reason is the detailed information such as revenue to be earn and the expenses to be occur of the company which they expected to achieve will able to certainly show in budget and it could reduce the possibility of the company may fail to achieve long-term decision.Furthermore, except for budgetary planning, budgetary control is also playing a significantly role in controlling stage to the company which want to be successful. The explanation is, budgetary control means looking back to the actual work and the planned result, to see whether it can fulfil the original budget. If the planned results is in line with the short-term plan, the manager will implement and monitor the budget, however if there are any running out of budget occurred, the manager should either revise the budget or take exercise control action immediately. In addition, to prevent problem slowly become bigger like a snow-balling, the manager will investigate the problem and after having conclusion the manager will take corrective action in order to ensure the plan can continuous work again. Last but not least, budgeting planning and controlling are a significant management tools that used by a manager’s company in management accounting information to lead a company become successful. 4.Standard Costing and Variance AnalysisThe word “Standard” in English dictionary means a normal requirement as a basis of judgement, then standard cost is the unit cost that predetermined by company carefully for each cost unit . In planning stage, quantity and cost (price) standards are the most common standard that used by a company who want to be successful. The reason is before the actual activity to be start, the manager will use the standard cost card to record what is the cost and amount of each resources that may incur in production process, so that it can as a benchmark or standard of tracing costs to the products. In addition, manager can utilize the standard costing as a basis for planning to develop a challenging target so that attainable standard will be set to prevent company’s employee demotivation due to unachievable target which set by the company.Furthermore, variance is the deviation between the standard cost and actual result. The reason why variance happen is staff are making poor decision, putting less effort on working and other. The process of composing of total variance by variance analysis is to explain how much of it is caused by the usage or cost of resources deviation from the standard .For example labour rate variance and labour efficiency variance can be use to analyze the direct labour total variance. Besides that, variance analysis also can be a controlling technique used by manager to improve operation, taking corrective action and allocate resources become more effectively therefore it can assistance management to eliminate the variance and make company become a successful company. In conclusion, standard costing and variance analysis can lead company become successful because standard costing is a management accounting tool that used to making reasonable expectation in planning stage while variance analysis is a process use to analysis why variance happen and taking reconciliation. 5. Activity-based costing (ABC)ABC recognizes the causal relationships of cost drivers to activities (Institute of Management Accountants, 1998).ABC systems assign costs to products on the basis of multiple cost drivers. In addition to the conventional volume-related drivers and volume-unrelated drivers are also included. An organization need to plan about the new idea and technology of the product. Firstly, the organization should assign cost to the activities that are the real cause of the overhead. It then assigns the cost of those activities only to the products that are actually demanding the activities. For example, activity based costing recognizes that special engineering, special testing, machine setups and others are activities that cause the cost the resources used in each of these activities. Next, the cost of each of these activities will be assigned only to the products that demanded the activities. Other products that use any of these activities will also be assigned some of their cost. ABC costing method is a model which activities in an organization will be identified and the cost of each activity resource to all products and services will be assigned according to the actual consumption by each. It means that more indirect cost will be assigned into direct costs. In this way, the cost of individual products and services can be estimate more precisely for the purposes of identifying and eliminating those which are unprofitable and lowering the prices of those which are overpriced. Management gains more insight by looking at more details area and get to know the cost incurred in each activities. This will then enable them to analyze the cost and to identify the activities that add value and those that do not add value. Based on the analysis, improvement can be implemented and the benefits can be realized. This is a continuous improvement process in terms of analyzing the cost, to reduce or eliminate the non value added activities and to achieve an overall efficiency. For example, the manager will making the decision based on the cost driver like number of set up, number of material requisition, number of material handling ,machinery hours ,inspection and others. Used the cost driver to calculate the total production overhead and divide it by production unit to calculate the production per unit . It help the manager to determine the selling price which will no made any loss on the production of any product and cause the organization wound up. ABC costing method will reflect the actual efforts associated with production more accurately. ABC can be a useful tool for determining the cost of unused capacity and for making strategic management decisions that will reduce costs.Conclusion To conclude, familiarity with and adoption of ABC was found to be comparable across both the manufacturing and service sectors. Service firms that provide multiple services that use overhead at differing rates can benefit from the use of ABC, as can manufacture firms with multiple products that place different demands on overhead. ABC system is an important system to create the successful organization.6)Demand of Forecasting Demand of forecasting is the practice to predict the future market demand for the product or service. The predict is based on the current data of the product. Two basic categories for methods are qualitative and quantitative methods. (Mentzer & Moon 2005) Quantitative methods can be divided into time series methods and causal methods ( (Fitzsimmons & Fitzsimmons 2006, s.324) .Qualitative methods are used typically when there’s no information for mathematically models. Although qualitative methods offer often high-class information about future demand. (Chase 1997)The marketing department will do the test market to determine what type of product will have the highest demand for the future to achieve the goal of the organization. The history sale of data from the test market, the organization will determine the production unit based on the demand of current data. It is because the organization will gain the profit. Capacity plan is really important to understand limits of own production and also limits of whole supply chain before manufacturing.They have management and stakeholder overview of the forecasts to ensure ownership but override with strategic requirements, policy and knowledge of business.Control the inventory management. The organization will control the stock’s flow of the product so that the organization will not meet the surplus or shortage of the product. The organization based on the data to control the production of product. If good with controlling the stock, there will be have a continues flows of inventory. The price of the product must be up and down which is based on the demand of the market and the price of production per unit. If the data show which is the highest demand in that area then makes the decision those products enter the new market. New market can development the way to sale the product and increase the demand of the product. The better decision making will create a successful organization. 2.The traditional budgeting process consumes a long time, uses lot of management resources, and the costs is too high. However, it is only a small percentage of the parties that involved in budgeting process consider the time spent is worth. One of the reasons traditional budgeting consumes too much time is use of spreadsheets. Spreadsheets contain inherent deficiency although they are the usual tool among companies such as version control issue or easily to data entry errors. The amount of corporate resources consumed by traditional budgeting increased by the pretty detailed budgets and the input and back and forth negotiation of many people.The second weakness of traditional budgeting is it only pay attention on short-term financial measurement. Actually, the main objective of company is to maximize shareholder wealth, but because of traditional budgeting are paying too much attention on short-term financial measurement so it will neglect the company mainly objective. For example, a manager will tend to be overestimate the cost/ expenditure and underestimate the income when doing budget, so that they will get reward if they achieved and can be protected from punishment. Although they can accomplish the short-term financial measurement such as profit, but it may cause undesirable effect and makes company far away from the company’s long term objective. A survey of planning, forecasting and budgeting practices by American Productivity and Quality Center (APQC) and the Beyond Budgeting Round Table (BBRT) found that 55% of respondents felt that the assumptions used in their traditional budgets were different than actual results that the budgets were useless within the first six months of the year. The lead researcher in the study, said that the issue is rising as market conditions become more unpredictable due to the accelerating speed of business.It is means that failure to motivate desirable behaviors. The traditional budgeting system is unsuccessful to motivate managers to act in their company’s interest such as it encourages “gaming” and unprofessional approach in budget cost centre managers. Most of the companies like to tie the executive and employee compensation directly to performance against the budget. Many companies uses this budget as a punishing device rather than a guideline. The upper management will criticism or gives poor or bad performance reviews to manager who do not reach a good forecast result. Besides, it enhances the bureaucracy and vertical control, this making people feel undervalued. If you’re managing a cost center in charge of spending, you will like to maximize the amount of the budget spend, because this will give you the most resources to spend regardless of whether these resources are necessary. As managers are so obsessed with hitting the numbers accurately, they will be miss the strategic purpose of budgeting. The strategic initiatives are unfair to lower priorities because it focuses on lower the cost rather than value creation.The departmental level attach important on the detail and extensive planning, it is requiring attention that the organizations have a formal structure so that budgeted process can be merged into the forecasting target achievement activities. The building and approving budgets through the communication and coordination are also need the formal organizational structure. The management will be difficult to control over the financial consequences therein and operational activities if without a formal organizational structure. Top management should not be only look at the variances from budgeted. They should be take the factors such as a new competitor enter into market, change in economic or change in policy into account when judging. Once the budget is fixed, game over, there can be no more changes. The economy may change, industry or market conditions may change, a lot of things within the business may change. Regulations may affect the business. New entrants or new competition may emerge. There may be new concepts, new partnerships or other internal factors related to financial repercussions. There are so many things that can change, and yet the traditional budgeted only looks at things as they were back when it was created.1) B) Rolling budgetRolling budget are usually updated on continuously basis, rather than semi-annual or annually. This mean that they are more accurate and require less time to update than traditional budget. Unlike traditional budget, where you basically start all over and have to redo the whole process again and marshal the resources annually. Rolling budget involve only small adjustment as you continually update on a short-term basis. So, this save time and resources.For example: One of the advantage of rolling budget is budgetary process spread over the year. So let just say you prepare quarterly. Although frequently prepare the budget, but you will prepare more quickly, so it will not disturb the operating activities of the organization so much.2) Beyond budgeti. The beyond budgeting is more concentrate on long term profitability instead of only concentrate on short term profitability. The beyond budget is more focus on non-financial measurement such as customer satisfaction, loyalty, trust, quality of goods and services instead of planning and control. Beyond budgeting does not rely on annually composed financial plan. Beyond budget rely on system like rolling forecast and balance scorecard to achieve the goals of the business. So, beyond budget is an effective way to achieve the overall goals of the business because it measure performance base on quantitative and qualitative.ii. The beyond budget reduce the dysfunctional behaviour among the manager. Beyond budget has the advantage of negotiation norms instead of the rigid norms in the traditional budget. This make it less likely the manager are going to manipulate the figure in order to reach the goals set by the target. For example: It can reduce budgetary slack by giving the manager an opportunity to participate in the strategic planning process, the manager become committed to the organization and create less slacks. Unlike the traditional budget which can encourage manager to create budgetary slack to protect themselves against punishment or make sure they do not miss out their bonus.iii. The beyond budget encourage devolved networks instead of centralized environment. This is to promote a culture of personal responsibility by delegating decision makings and performance accountability to line manager. For example: Beyond budget state that bottom up empowerment system is need. While the traditional budget is top down which is centralized. So, the beyond budget is bottom up approach which delegate responsibility towards manager. Manager have more authority and confidence to take part in the project.3) Zero-based budgeti. The zero-based budget is required to justify current and proposed project, which mean the manager must explain the reason why they want to spend money on a particular activity and also explain what would be the consequence if the propose activity is not undertake. So, justification is given by the manager for the particular decision package. Therefore, manager feels more in control ,so it reduce the tendency of budgetary slack and manipulation of budget figure. Unlike the traditional budget which the justification is given by top management for the particular decision.ii. The zero-based budget is more focuses on future rather than past. Zero-based budget take the factors as a consideration, they look at the strategic plan of the future, and then go ahead budget the spending of next year, so which is more accurate prediction. Unlike the traditional budget .since the traditional budget take previous year data as a base point, then the prediction is not so accurate.