The Effectiveness of Managerial Accounting Information Affecting Profitability of Business

Abstract

Nowadays, it is known as the era of globalization, causing free trades and limitless effects on the state of economic competitions which tends to be stronger. Thus, business corporates must prepare and adjust themselves to confront any situation which may occur. They need to invent a tool or strategy to provide competitive advantages. This contributes to the ability to make a profit. Moreover, it is necessary to seek tools or strategies for the administration to be successful and to sustainably grow. One important factor is the accounting information system, especially the managerial accounting information. The objectives of this study were 1) to study the effectiveness of managerial accounting information affecting profitability, and 2) to study the trend in employing managerial accounting information in the future. In this study, a constructed questionnaire was used to collect data from 122 companies listed on the Market for Alternative Investment (MAI). The statistic used to analyze the data was the multiple regression analysis at a significant level of .05. It was found as follows; 1) the analysis of data for decision and the analysis of capital expenditure affected the gross profit margin, 2) the concept and cost classification and the analysis of capital expenditure impacted the earnings before interest and tax margin, 3) the responsibility accounting and transfer pricing, the analysis of data for decision and the analysis of capital expenditure affected the net profit margin, and 4) the biggest trend in applying managerial accounting information in the future was Corporate Social Responsibility (CSR).