Experience in Organizing Management Accounting of Some Developed Countries in the World and Lessons Learned for Application to Vietnamese Enterprises

- Organizing a management accounting system combined with financial accounting in the same apparatus: According to this model, accounting staff organize both financial accounting and management accounting in combination according to each accounting section. To collect information, management accounting uses the account system of financial accounting and opens details according to the information provision requirements, at the same time determining the content and recording methods on detailed accounts suitable for collecting, processing and providing specific information. Accounting books serving management accounting are the detailed book system of financial accounting. In addition, to meet management requirements, management accounting can design specific detailed books.

To implement this model, managers must understand the specific qualifications and capabilities of each accounting staff, and must clearly distinguish the work of financial accounting and management accounting in each section to serve the preparation of financial accounting reports and management accounting reports.

This model is often applied in small and medium-sized enterprises, with a low number of transactions. This model has the advantage of closely combining financial accounting and management accounting information, quickly collecting information, and saving costs. However, the limitation is that it is difficult to specialize two types of accounting according to modern technology.

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- Organizing the management accounting system independently from financial accounting: According to this model, the department performing management accounting is independent from the department performing financial accounting. Based on the same initial voucher system, management accounting uses a separate account system and accounting book system from financial accounting. The accounts used in management accounting can use multi-level accounts and are classified, and recording methods are specified in accordance with the basic content of management accounting to create coordination in providing information for management. Management accounting makes estimates for each type of work for each department to prepare management reports.

This model is often applied in large-scale enterprises, with a large number of economic transactions, and multi-industry and multi-profession businesses. This model has

The advantage is that management accounting information is separated from financial accounting information, which is convenient for specialization and modernization. However, the limitation is that the information of the two subsystems cannot be generalized, which is time-consuming and costly compared to the combined model of financial accounting and management accounting because it requires additional steps of information circulation and processing and costs for the management accounting department.

- Mixed form (combining the two forms above): Organize a separate cost management accounting department, other content in a combined form.

Thus, each management accounting organization model has certain content, advantages and disadvantages, so the choice of which management accounting organization model needs to be based on factors such as: Type of accounting applied, type of business, scale and scope of business operations, characteristics of production and business organization, technological process and requirements, management level of the business...

1.3. Experience in organizing management accounting of some developed countries in the world and lessons learned for application to Vietnamese enterprises

1.3.1. Experience in organizing management accounting of some developed countries in the world

The information provided by management accounting is one of the important sources of information that helps managers operate, plan and make business decisions. To obtain this source of information, it is important that businesses organize management accounting according to an appropriate model. Management accounting has been formed and developed extremely rapidly in both theory and practice in the world, that process has created both common points and specific trends in each country. However, currently in the world there are 2 models of management accounting organization that businesses can consider, research and apply:

1.3.1.1. Management accounting organization model in the US

The United States is a country with a developed market economy, economic potential and an open market style of financial management. Management accounting in the United States is a management accounting system.

world pioneer in providing useful information, establishing management decisions using models and quantitative information techniques.

The management accounting system in the US is organized in combination with the financial accounting system in the same accounting system. The accounting system is not divided into a management accounting department and a financial accounting department, but is divided into accounting departments that perform accounting tasks according to assigned functions and tasks. These departments perform both financial accounting and management accounting work to satisfy and meet the information needs of both internal and external entities of the enterprise. Financial accounting uses a system of general accounts and general reports, while management accounting uses detailed accounts and departmental reports to collect and process information.

In the past, American accounting only focused on financial accounting, but today, when cost accounting and analysis play an important role in helping management make decisions, management accounting occupies an important position.

American management accounting also attaches importance to cost classification, especially cost classification according to cost behavior to analyze the Cost - Volume relationship.

- Profit to answer questions such as: What will the profit be at different levels of consumption? What level of consumption must be sold to achieve that particular profit level?

To account for production costs, accountants use two basic methods: job costing and process costing.

Performance evaluation and control in US management accounting focuses on short-term and long-term business decision making and financial statement analysis.

American management accountants view the budgeting process as important in capturing and reflecting the results of planning decisions, ranging from decisions about pricing, product mix, and cost structure to decisions about dividends and new investments.

Thus, American management accounting focuses on budgeting and setting specific short-term goals through the use of a diverse system of methods, including many methods from other sciences to quantify information, analyze, interpret and select investment projects and business production plans. In recent years, management accounting in American enterprises has undergone some changes in information structure, improving the qualitative nature of information and control to supplement shortcomings, backwardness and ineffectiveness compared to the world. Therefore, information from American management accounting is convincing and meets high management needs.

1.3.1.2. Management accounting organization model in France

The French Republic is a Western European country with a long-standing developed economy, with high-level economic management in general and accounting in particular.

The French accounting system consists of two parts: financial accounting (general accounting) and management accounting (analytical accounting). Management accounting in France is characterized by "static" accounting in financial accounting and dynamic accounting in management accounting. The management accounting system is organized into a separate apparatus (management accounting department or management accounting department) using a separate system of accounts, accounting books, and internal accounting reports that are relatively independent from financial accounting.

French management accounting places special emphasis on determining and controlling costs by dividing the enterprise into responsibility centers, analyzing, evaluating and finding the causes of cost deviations and finally harmonizing financial accounting and management accounting.

The objective of French management accounting is to calculate the costs of each center, the cost of each product and service, establish cost and result estimates, control implementation and explain the causes of differences between estimated costs and actual costs. The analysis of business results and assessment of factors affecting the business situation are carried out very carefully. Management accounting information is collected and processed through high-tech means through

Scientific calculation methods should ensure providing complete, accurate and timely information for managers to make correct business decisions.

1.3.2. Lessons learned and applied to Vietnamese enterprises

Studying the model of management accounting organization in some countries with developed economies will help us learn and acquire valuable experiences in the process of building and perfecting cost management accounting in Vietnamese enterprises in general and manufacturing enterprises in particular. Those lessons are:

- The management accounting system should be organized according to the American model, which means combining financial accounting and management accounting in the same accounting system to save costs and time in collecting, processing and providing information, suitable for the level of accounting staff of current Vietnamese enterprises, while ensuring convenience for management, inspection and control by the State.

- Management accounting should use financial accounting accounts but open details according to management requirements and departmental reports to collect, process and provide information in a timely manner to serve the process of making business decisions.

- Each accounting department should have clear and specific assignments and responsibilities to enhance the sense of responsibility in each individual's work, while avoiding overlap in the process of collecting, processing and providing information to business administrators.

- Production costs need to be classified clearly and completely, according to many different criteria to reflect and fully grasp all costs arising in the enterprise, identify the costs arising from there to help administrators manage costs closely.

- Applied research analyzes the relationship between costs, volume and profits to make decisions on the quantity of products to produce and consume, the structure of products consumed under the available conditions of the enterprise to achieve the level of

net profit as expected. From there, there is a basis for setting appropriate selling prices to meet market demand and maximize the potential of the business.

- Focus on building, consolidating and perfecting the system of technical economic norms and estimating the production and business process in a scientific and reasonable manner. Pay special attention to analyzing the operating results in relation to the costs incurred, finding the cause of any deviation, indicating the responsible department to have reasonable and timely adjustment solutions.

Learning valuable experiences from countries with developed economies will help us build, consolidate and perfect management accounting, especially cost management accounting in Vietnamese enterprises in general and manufacturing enterprises in particular in a scientific and effective manner, contributing to enhancing the position of Vietnamese enterprises in the process of international economic integration.

Conclusion of chapter 1: Chapter 1 has focused on researching and systematizing the basic theoretical issues of cost management accounting. First of all, this chapter presents and analyzes the concept and nature of management accounting in general, from which the concept and nature of cost management accounting are drawn. From there, it focuses on researching and clarifying the basic issues of cost management accounting regarding cost classification; Methods of determining production costs of products and services; Cost estimates in enterprises; Cost management accounting reporting system; Analysis of the relationship between costs, volume and profit; Cost management accounting organization models in enterprises. Based on the basic theory, this chapter studies the experience of organizing cost management accounting in some developed countries in the world to draw lessons and apply them to enterprises in Vietnam in a suitable and flexible manner to achieve the business's operational goals. The research issues in chapter 1 are the basis, premise, and guideline for studying and evaluating the current status of cost management accounting at Thai Nguyen Transport Construction Joint Stock Company I in order to propose solutions to improve cost management accounting at the Company.

CHAPTER 2

CURRENT STATE OF COST MANAGEMENT ACCOUNTING AT THAI NGUYEN TRAFFIC CONSTRUCTION JOINT STOCK COMPANY I

2.1. Overview of Thai Nguyen Traffic Construction Joint Stock Company I

2.1.1. The formation and development process of Thai Nguyen Traffic Construction Joint Stock Company I

Thai Nguyen I-Transportation Construction Joint Stock Company, formerly Thai Nguyen I-Transportation Construction Company, is a state-owned enterprise under the Thai Nguyen Department of Transport, established on January 1, 1976 with the name "Bac Thai Road Construction Company" according to Decision No. 256/QD-UB of the People's Committee of Bac Thai province.

But to meet the requirements of production and business, on February 2, 1982, the company was renamed "Bac Thai Road Construction Enterprise" according to Decision No. 13/QD-UB of the People's Committee of Bac Thai province. Based on the 1986 classification criteria, the enterprise was classified by Bac Thai province as a Grade 2 Enterprise according to Decision No. 125/QD-UB dated September 13, 1986 of the People's Committee of Bac Thai province. At that time, the annual task of the Enterprise was: To build new and upgrade road surfaces of all kinds (including horizontal and vertical drainage systems and small-span wooden bridges) on roads within Bac Thai province.

In order to develop a socialist-oriented market economy, implement the policy of the leading role of State-owned enterprises in the national economy, and at the same time, based on the actual situation and conditions of the Enterprise and Bac Thai province, on November 28, 1992, according to Decision No. 607/UB-QD of the People's Committee of Bac Thai province (now Thai Nguyen province), "Bac Thai Road Construction Enterprise" was established and renamed "Thai Nguyen Traffic Construction Company I". This is a State-owned enterprise, a full legal entity, with its headquarters located at Group 15, Tan Thinh Ward - Thai Nguyen City - Thai Nguyen Province.

Implementing the Government's policy of innovation and restructuring of State-owned enterprises, Thai Nguyen Traffic Construction Company I was approved by the Thai Nguyen Provincial People's Committee for equitization plan according to Decision No. 3317/QD-UB dated December 17, 2003 and was renamed Thai Nguyen Traffic Construction Joint Stock Company I. Thai Nguyen Traffic Construction Joint Stock Company I started operating from January 2004. Business registration certificate No. 17030000072 issued by the Department of Planning and Investment of Thai Nguyen province on January 1, 2004; first change registration on January 2, 2004, second change registration on August 5, 2008.

Thai Nguyen Transport Construction Joint Stock Company I was established from the equitization of a state-owned enterprise in the form of selling a part of the state capital in the enterprise, issuing additional capital with the aim of expanding the scope and scale of production and business activities on the basis of voluntary capital contribution of shareholders including all officers and employees of the company and other shareholders outside the company. The total charter capital of the company is 5 billion VND, of which the state capital accounts for 30% and the charter capital is divided into 50,000 shares.

The company's business lines are as follows:

- Construction of works: Traffic, civil, industrial, irrigation, site clearance.

- Exploitation, processing and trading of construction materials for transportation and construction projects.

- Production of precast concrete components.

- Buying and selling of transportation equipment and materials.

- Construction of civil and industrial electricity.

- Consulting on survey and design of traffic works.

- Real estate and infrastructure business.

The expansion, contraction or change of business content and scope of production and business activities is decided by the general meeting of shareholders.

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