A Research On Management Accounting Reporting System For Construction Enterprise Basing On Value-chain

Management accounting, which was mainly used for the firms who needs a lot of cost accounting like manufacturing enterprise and construction enterprise, is now adopted by the financial corporation and information service enterprise. As the carrier of the information about management accounting, the content and model of management accounting statements is various from the different business scope, service object, implement method of different industry. Thus management accounting statements shows two characteristics:diversity and flexibility.Construction industry is a labor-intensive industry. Due to the large-scale of firms and the complicated department set, construction firms have two common problems:the organization structure is not rational and the level of project management is not reasonable. In the majority of construction enterprises, the functions among different departments cross and overlap seriously, the level of cost management and quality control are unsatisfied. Furthermore, in consequence of the inaccuracy of management information, the performance evaluation which is directly related to the firms’ management level is lack of persuasion. We found that the content set of management accounting statements for most companies is uncomprehensive. Most companies paid more attention on cost control and cost analysis, but they paid less attention on performance evaluation. Moreover, the budget report is roughly equivalent to the budget program. In addition, some accountant point out that the method and time of data using in firms’ internal report are nearly the same as the financial report, and the content of internal report is less complete than financial report. Thus, the internal report is not taken seriously by the management, and the report only has reference value on the cost analysis. Although the management of firm have recognition of management accounting, the application of management accounting is not successful. The reason of this phenomenon is that administrator does not have a clear view of management accounting and the management accounting statements do not have a clear system.However, the raise of value-chain gives a new direction for operation and management philosophy. Dawu Yan, Huacheng Wang, Yuming Hu and many other accounting scholars devote themselves to the research and application of value-chain. The most common report system of management accounting has three basic components:budget, cost control and performance evaluation. This research introduces the value-chain to the management accounting report system, and it enhances the theory of management accounting report by studying the management practice of firms. Furthermore, after leading to value-chain accounting, comprehensive budget management, operating cost and balance scorecard, this research is aiming at finding out an applicable management accounting system to the construction enterprise.