For findingthe cause of this issue, according to the survey results of leather and footwearenterprises, only a small number of enterprises have had cost management accountinginformation
Trang 11 Essential of the dissertation
Nowadays, leather and footwear is the third largest export sector in Vietnam.Erwin Schweisshelm (2016) There are about 700 enterprises operating in the leatherand footwear industry, attracting more than one million workers Export turnover ofthe whole industry reached US$ 16.2 billion in 2016, and nearly reached US$ 18billion in 2017 (Vietnam Leather, Footwear and Handbag Association, 2016a) Underthe common goal of development till 2020, Vietnam Leather and Footwear Industrywill become an important spearhead export industry of the national economy,continuing to hold a position in the group of world-leading producing and exportingLeather - Footwear products countries as well as creating more jobs for the society(Ministry of Industry and Trade, 2010)
The cost management accounting information system is a collection ofinformation on resources, such as people and equipment, which is to convert financialdata and other data into information on the cost of utility for the manager (Bodnar &Hopwood, 2001) Not only that, but also a set of related activities, documents andtechnologies designed to collect data, process and report information to a group ofinternal decision makers (Hurt & Zhen, 2008) The cost management accountinginformation system reflects the implementation of input and output costs in the course
of production and business The cost management accounting information systemhelps the administrator understand the current situation of production and businessactivities of the enterprise, thereby helping the administrators make timely adjustmentand supplement policies for the production and business activities of the enterprise.The cost management accounting information system provides information to helpbusiness administrators choose the most optimal business plan among different types
of business plans The cost management accounting information system is veryessential and useful for the enterprises, helping administrators make the right andtimely decisions (Dao Thuy Ha, 2015; Le Thi Minh Hue, 2016)
However, some studies and reports show that the leadership of Vietnameseleather and footwear enterprises are facing obstacles in making decisions: The mainreason is due to the slow access to cost accounting information management, unclearand consistent information with not high applicability (Lac Phong, 2016) For findingthe cause of this issue, according to the survey results of leather and footwearenterprises, only a small number of enterprises have had cost management accountinginformation system, mainly foreign-invested enterprises, while the rest of the domesticenterprises have not organized the cost management accounting information systembecause they are not aware of the importance of the information provided by the costmanagement accounting in term of business management, or they do not know how toorganize the cost management accounting information system
Stemming from the above reasons, the dissertation "Organizing the costmanagement accounting information system in Vietnamese leather and footwearenterprises" was selected by the postgraduate student as the topic of his dissertation to
Trang 2evaluate the current situation and propose solutions to improve the organization of costmanagement accounting information system (AIS) in Vietnamese leather and footwearenterprises.
2 Research targets
General target: Organizing the cost management AIS in Vietnamese leather
and footwear enterprises
Specific targets:
(1) Generalize the theoretical basis of the organization of the cost managementAIS, the organizational factors that affect the quality of the the cost managementaccounting information in manufacturing enterprises
(2) Survey into the cost management AIS in Vietnamese leather and footwearenterprises
(3) Perform an analysis of organizational factors affecting the quality of thecost management accounting information in Vietnamese leather and footwearenterprises
(4) Suggest solutions which may improve the cost management AIS inVietnamese leather and footwear enterprises
For the primary data: The primary data system was collected on the basis ofconducting surveys and investigation in Vietnamese leather and footwear enterprises,through in-depth interviews and questionnaires The interview should focus on theobjects as follows: Representatives of Vietnamese footwear enterprises and experts inthe cost management accounting information system in order to identify problems,policies and ways for organizing the cost management AIS in Vietnamese footwearenterprises as well as designing questionnaire The questionnaire was used to collectinformation on the real state of the organization of the cost management AIS in theVietnamese leather and footwear enterprises by consulting managers and accountants
in some Vietnamese leather and footwear enterprises
Trang 3For data processing tools, this dissertation mainly applied statistical methods ofdescription and linear regression using SPSS software and applied a number of othermethods such as generalization, collection, summary, analysis, thinking, statistics andcomparisons to make specific assessments and evaluation, hence provide specificsolutions to improve the the cost management AIS.
4 Object and range of research
Object: Research into organizing the cost management AIS in Vietnamese
leather and footwear enterprises
(3) Research period: Survey data on Vietnamese leather and footwearenterprises was collected from 2015 to 2018
5 Scientific significance and practical theory
Theory: The dissertation provides an overview of issues related to theorganization of the cost management accounting information system and theorganizational factors affecting the quality of the cost management accountinginformation
Practical theory: This dissertation makes clear about the fact of the costmanagement accounting information system in Vietnamese leather and footwearenterprises
Applicability: This dissertation builds a model of organizational factorsaffecting the quality of the cost management accounting information in Vietnameseleather and footwear enterprises This model helps Vietnamese leather and footwearenterprises build and complete the cost management accounting information systemorganization in general and the organization of the cost management accountinginformation system in particular On the other hand, this dissertation suggests solutionswhich may improve the cost management AIS in Vietnamese leather and footwearenterprises
6 Structure of the dissertation
In addition to the introduction and general conclusion, the dissertation isdesigned into 4 chapters:
Chapter 1: Make research overview, determine research issues and researchmethodology
Chapter 2: Fundamental theory and general theory of organization of the costmanagement accounting information system in manufacturing enterprises
Chapter 3: Research results of the real state of organizing the cost managementaccounting information system in Vietnamese leather and footwear enterprises
Chapter 4: Solutions to organize the cost management accounting informationsystem in Vietnamese leather and footwear enterprises
Trang 4CHAPTER 1: MAKE RESEARCH OVERVIEW, DETERMINE RESEARCH
ISSUES AND RESEARCH METHODOLOGY 1.1 Overview
Through the overview of the formation and development of the accountingmanagement in Vietnam, it is found that the accounting management integration inVietnam has undergone a strong development through 4 stages Stage 1: the primitivestage of the accounting management of which the focus is to research into the content
of the accounting management Stage 2: This stage has applied content of theaccounting management and the cost management accounting to specific industries.Stage 3: This stage has focused on building a model of the cost managementaccounting for specific industries Stage 4: This stage has focused on organizing thecost management AIS for specific industries During the stage of research intoorganizing the cost management AIS for specific industries, no research papers on theorganization of the cost management AIS in footwear enterprises has been performed
in such a way of its effectiveness, especially in terms of quality of the costmanagement accounting information
1.2 Research gaps and determination of research issues
For the model for organization of the cost management AIS: in the research
papers on building the model of the cost management accounting by (Nguyen Hoan,2012); Pham Thi Thuy (2007); (Tran The Nu, 2011; Tran Thi Thu Huong, 2014) andorganizing the cost management AIS by Nguyen Thanh Hung, 2017), the author hasrealized that when it comes the model for organization of the cost management AIS,previous studies have acknowledged the model of organization of the accountingmanagement from the perspective of human organization Accordingly, theaccounting management apparatus is organized in conjunction with the financialaccounting apparatus or accounting management apparatus organized independentlyfrom the financial accounting apparatus, and no research papers on the model fororganization of the cost management accounting information system under theinformation system of the cost management accounting has been performed.Therefore, this is the research gap of the dissertation in term of the model fororganization of the cost management AIS
For the content of model for organization of the cost management AIS:
research paper by Ho My Hanh (2013) may access to the content of informationsystem according to the following contents (1) The organization of information system
on cost estimate; (2) The organization of the information system on cost payment; (3)The organization of cost information control Research paper by Le Thi Hong (2016)may access to the contents of the cost management AIS according to the followingcontents (1) Cost identification; (2) Information flow chart; (3) Operation procedure ofthe cost management AIS; (4) Technical means of the cost management AIS; (5)Internal control over the cost management AIS Research paper by Nguyen ThanhHung (2017) may access to the contents of the cost management AIS according to thefollowing contents (1) Organizing the process of collecting - processing - providingthe cost management accounting information; (2) Organizing the system of support
Trang 5facilities; (3) Organizing the control of the cost management accounting information.Thus, no research papers on the cost management AIS in terms of the components thatconstitute the cost management AIS has been performed Therefore, this is also theresearch gap of the dissertation in term of the the cost management AIS.
For the factors affecting the organization of the cost management AIS:
research paper by Ho My Hanh (2013) has not mentioned the model of factorsaffecting the organization of the cost management AIS; Research paper by Le ThiHong (2016) may refer to the model of factors causing the reduction of the costmanagement AIS; Research paper by Ngguyen Thanh Hung (2017) may refer tofactors affecting the organization of the cost management AIS in the serviceenterprises, such as (1) Quality of input data; (2) Support facilities; (3) Humanresources for accounting; (4) Vision and commitment of the administrators Thus, theauthor thinks that the output of the cost management AIS organization is the quality ofcost management accounting information provided for the administrators Therefore,the research gap of the dissertation is determined to be building a model oforganizational factors that affect the quality of the cost management accountinginformation and analyzing the degree of impact of each organizational factor on thequality of the cost management accounting information
Determining research issues: Based on an overview of the research and
identifying research gaps, the author chose to research into the organization of the costmanagement AIS in Vietnamese footwear enterprises with an approach based on thecomponents that constitute the information system and the research questions,including:
Question 1: What is the theoretical foundation for the the cost managementAIS in manufacturing enterprises?
Question 2: How is the organization of the cost management AIS implemented
1.3 Research methodology
This dissertation applied qualitative research method in combination with
quantitative research method Research process of the dissertation is classified into
10 steps
Trang 6CHAPTER 2: FUNDAMETAL THEORY AND GENERAL THEORY OF ORGANIZATION OF THE COST MANAGEMENT ACCOUNTING INFORMATION SYSTEMS IN MANUFACTURING ENTERPRISES 2.1 Fundamental theory
2.1.1 Theory of situation
The comprehensive study on the theory of situation shows that the theory ofsituation is the basic theory that governs the work organization in enterprises,including the organization of cost management AIS The theory of situation helps theauthor build up the idea of organizational contents of the cost management accountinginformation systems, including contents, the impacts of factors in the organization ofthe cost management AIS within the leather and footwear enterprises and the extent ofimpacts of organizational factors on the quality of the cost management accountinginformation?
2.1.2 Theory of information system
The application of information systems theory for organization of the marketeconomy system is very necessary aimed at providing useful information formanagers, and delivering information with externsive influences on the organization.The theory of information systems will help the author obtain ideas about the process
of production, storage, retrieval and supply of information for the relevant subjects inthe organization of the cost management AIS in Vietnamese leather and footwearenterprises
2.1.3 The theory of benefit-cost relationship
The theory of benefit-cost relationship will help the author realize therelationship of costs investment for organization of the cost management accountinginformation systems and the benefits of organization of the cost managementaccounting information systems for the Vietnamese leather and footwear enterprises
On this basis, the author proposes the organization of the cost management AISclosely to the actual situation of Vietnamese leather and footwear enterprises
2.2 Cost management accounting and information system for costing
2.2.1 Information system frame
The information system is a collection of formal procedures through which data
is collected, processed into information and distributed to users (M B Romney,Steinbart, & Cushing, 2000)
2.2.2 General model for accounting information system
According to Hall (2012), the general model of the accounting informationsystem includes elements: users, data sources, data collection, data processing,database management, information creation and feedback
The enterprises can apply the general model of AIS to organize the costmanagement AIS for their production It should be noted that the cost managementaccounting information system is organized to provide the cost managementaccounting information to managers within the enterprise and serve the decision-making of managers at all levels
Trang 72.2.3 Evaluate the information system models
In this section, the author presents the contents of manual process model, flat filemodel, database model, REA model, enterprise human resource planning system
2.2.4 The role of accounting in the information system
In this section, the author presents the relationship between the the accountingsystem and information system, mainly related to the three functions: system user,designer and auditor (Hall, 2012)
2.2.5 Collect and handle accounting operations in the information system
Transaction cycle is the process of handling transactions at providinginformation on financial statements, internal management reports and daily assistanceactivities The three transaction cycles that handle the most of economic activities of
an enterprise include cost cycle, production cycle and revenue cycle (Hall, 2012)
2.2.6 Organizing the Cost management accounting information system
2.2.6.1 The model for organization of the cost management accounting information system
In this section, the author presents the organization of the cost management AISwhen the management accounting information system is one part of the informationsystem for management and organization of the cost management accountinginformation system and when the management AIS is one part of the AIS
2.2.6.2 The method for organization of the cost management accounting information system
The cost management AIS is organized into cycles, including cost cycle, salarycycle, fixed asset cycle and production cycle
2.3 Organization of the cost management accounting information system
The cost management AIS is a collection of resources, such as people andequipment, designed to convert financial data and other data into information (Bodnar
& Hopwood, 2001) Not only that, but also a set of related activities, documents andtechnologies designed to collect data, process and report information to a group ofinternal decision makers (Hurt & Zhen, 2008) The cost management AIS functions incollecting, recording, storing and processing data to create information for decisionmakers (M Romney, Steinbart, Mula, McNamara, & Tonkin, 2012) The organization
of a cost management AIS is a series of preparatory procedures to develop a new costmanagement AIS or to adjust and use an existing cost management AIS (U J Gelinas
& Dull, 2008) There are six components related to the cost management AIS (M.Romney và ctg., 2012), including: (1) System users, (2) Procedures and manuals forcollecting, processing and storing data, (3) Data, (4) Data processing software, (5)Information technology infrastructure, including computers, peripherals, and networkcommunication devices used in AIS and (6) Internal control and security measures toprotect AIS data James A O'Brien và George M Marakas (2010) stated that thecomponents are interrelated, and all are mutually supportive to achieve a common goalthrough a transition from input to output
2.3.1 Human organization
The members in the cost management AIS are system users The experts whomay need to use the organization's cost management accounting information systeminclude accountants, consultants, business analysts, managers, financial directors andauditors (Fontinelle, 2011)
Trang 82.3.2 Organization of procedures and guidelines
The procedures and guidelines of the cost management AIS are the methodsapplied by the system for data collection, storage, retrieval and processing There aremanual and automatic methods Data may come from internal sources (e.g employees)and external sources (eg, customers’online orders) The procedures and instructionswill be coded into the software of cost management AIS; Working procedures andinstructions should also be trained for staff through materials and practical training.Working procedures and instructions must be consistently implemented to be effective(Fontinelle, 2011)
2.3.3 Data organization
The data contained in the cost management AIS refers to all information related
to the organization's cost management accounting practices Any business data related
to the cost management accounting of the company shall be the subject to be handled
by the cost management AIS The data in the cost management AIS will depend on thenature of the business, however, it can be found in: General journal, inventory data,staff information, timekeeping, ledger, costs note, analysis of changes in cost price,selling expenses, and management expenses (Fontinelle, 2011)
2.3.5 Organization of infrastructure and information technology
According to Azhar Susanto (2008), hardware is a physical device used tocollect, import, process, store and retrieve data in the form of information Hardware
includes processor, memory, control card; Input device and output device
2.3.6 Organization of internal control system
The cost management AIS contains confidential information belonging to thecompany, employees and customers This data may include information on salary,credit card numbers, etc All data in the cost management AIS must be coded andaccess to the system should be recorded and monitored In addition, the system’sactivities should be monitored (Fontinelle, 2011)
2.4 Organizing the accounting information system in general and the cost management accounting information system in particular
2.4.1 Human organization
The human organization in cost management AIS should also includecomponents such as the designer of the cost management AIS, the developer of thecost management AIS, the supporter of the cost management AIS and the users of thecost management AIS
2.4.2 Organization of procedures and guidelines
The procedures and guidelines of the cost management AIS are the methodsused by the system to collect, store, retrieve and process data They are manual and
Trang 9automatic methods Data may derive from internal sources (e.g employees) andexternal sources (eg, online orders from customers) The procedures and guidelineswill be coded into the software of cost management AIS; The staff should be trainedwith working procedures and guidelines through materials and pratice Workingprocedures and guidelines must be consistently followed in order to be effective(Fontinelle, 2011).
2.4.3 Data organization
Data organization of the cost management AIS can use one of the followingthree data organization models: grading data organization model, network model, datarelationship description model (Wang, 2003)
2.4.4 Software organization
Burch (1989) pointed out two main criteria to consider and select an accountingsystem that includes software functions and specific accounting functions consistentwith a particular business
2.4.5 Organization of infrastructure and information technology
Information technology infrastructure is only a preferred name for the hardwareused to operate the cost management AIS According to Azhar Susanto (2008)hardware is a physical equipment used to collect, enter, process, store and retrieve data
in the form of information Hardware includes the processor, memory, control card,input equipment and output equipment
2.4.6 Organization of internal control system
The enterprise can also apply COSO model (The Committee of SponsoringOrganizations of the Treadway Commission) COSO to organize internal control forthe cost management AIS The contents of COSO model include 5 components: (1)Control environment, (2) risk assessment, (3) control activities, (4) information andcommunication, (5) monitoring (Marshall B Romney et al., 2013)
2.5 The quality of cost management accounting information and the factors affecting the quality of cost management accounting information
2.5.1 Quality of cost management accounting information
2.5.2 Factors affecting the quality of the cost AIS
2.5.2.1 Human organization factors
2.5.2.2 Factor constituting and organizing the procedures and guidelines for collecting, processing and storing data.
2.5.2.3 Data organization factors
2.5.2.4 Organizational factors for selecting and using data processing software
2.5.2.5 Information technology infrastructure organizational factors
2.5.2.6 Organizational factors of internal control system
2.5.2.7 Cultural characteristics and organizational structure
2.6 Research model and testing tools
2.6.1 Research model
2.6.1.1 Research hypothesis
H1: Human organization factors for the cost management AIS systems affectthe information quality supplied to the manager
Trang 10 H2: Factors constituting and organizing the procedures and guidlines for using thecost management AIS affect the information quality supplied to the manager.
H3: Data organization factors of the cost management AIS affect theinformation quality supplied to the manager
H4: Organizational factors for selecting and using software in the costmanagement AIS affect the information quality supplied to the manager
H5: Information technology infrastructure organizational factors for the thecost management AIS affect the information quality supplied to the manager
H6: Organizational factors of internal control system in the cost managementAIS affect the information quality supplied to the manager
H7: Cultural characteristics and organizational structure in the cost managementAIS affect the information quality supplied to the manager
2.6.1.2 Research model
Based on the assumptions presented, a model of the research into organizationalfactors affecting the quality of the cost management accounting information isproposed as follows:
Proposed research model.
2.6.2 Testing tool
Data analysis using a data processing tool - SPSS 22.0 software afffirms thefactors as well as the values and reliability of the scales of organizational factorsaffecting the quality of cost management accounting information quality supplied tothe manager in Vietnamese leather and footwear enterprises, verify the suitability ofthe research model and the hypotheses designed and proposed in quantitative research
2.6.3 Building a scale
The scale used in the dissertation is based on the theory and studies presented insections 2.5 and 2.6.1 These scales are inherited and adjusted to be consistent with thestudy in Vietnamese leather and footwear enterprises The scales are coded and thesource of scales, variables (contents of the question) are detailed in Appendix 2.1
Trang 11CHAPTER 3: RESEARCH RESULTS OF THE REAL STATE OF
ORGANIZING THE COST MANAGEMENT ACCOUNTING INFORMATION SYSTEM IN VIETNAMESE LEATHER AND FOOTWEAR ENTERPRISES 3.1 Overview of Vietnamese leather and footwear enterprises
3.1.1 General introduction to Vietnam leather and footwear industry
The export turnover of the whole industry reached USD 16.2 billion in 2016,reached USD 17.93 billion in 2017, the export turnover of the whole industry in 2018reached USD 19.5 billion, the expected export turnover of the whole industry in 2019will reached USD 22 billion Production capacity is still mainly export processing, thedesign capacity is still weak with lack of synchronization in production developmentand supply of raw materials About 70% of enterprises depend entirely on the source
of technical equipment, technology, product design and foreign markets (VietnamLeather, Footwear and Handbag Association, 2016a)
3.1.2 Characteristics of business organization of footwear enterprises operating in Vietnam
3.1.2.1 Characteristics of production and business activities
Thu Ha and Lien Hoa (2013) determined that Vietnam’s leather and footwearindustry mainly has 4 production methods: pure processing; FOB production(purchasing raw materials and semi-finished products); production for foreign brands,consumption in export markets; production according to OBM (Vietnam’s originalbrand product)
3.1.2.2 Characteristics of production technology of leather and footwear industry
According to the results of the survey, the leather and footwear manufacturingenterprises currently produce 3 types of main products including leather shoes, sportsshoes and pressed shoes This result is also consistent with Nguyen Thi Dao (2016)when surveying the leather and footwear enterprises in Hai Duong province
3.1.2.3 Characteristics of organization and management in leather and footwear enterprises
According to the survey results of the research on the general characteristics ofthe organization and management structure in Vietnamese leather and footwearenterprises organized according to the functional online structure, this conclusion hasthe same results with the research of Nguyen Thi Dao (2016) on the leather andfootwear enterprises in Hai Duong province
3.1.2.4 Characteristics of organization of accounting management apparatus in leather and footwear industry
According to the survey results of the research, the general characteristics forthe accounting apparatus of the leather and footwear enterprises is organized according
to the centralized accounting model The whole accounting work is done in theaccounting department of enterprises, at the workshop, only statistics employee isarranged The enterprises do not organize separated management accounting for 100%
Trang 123.2 Real state of organization of the cost management accounting information system in Vietnamese leather and footwear enterprises
3.2.1 Real state of organization of the cost management accounting information system apparatus
3.2.1.1 The model for organization of the cost management accounting information system
Researching the actual situation of the management accounting organization ingeneral and the actual situation of cost management AIS organization shows that theenternprises have not built a management accounting department in the accountingsystem but the financial accounting department is performing the tasks of managementaccounting in general and the tasks of the cost management accounting department inparticular Therefore, the leather and footwear enterprises are organizing the costmanagement AIS in the case of HTTT KTQT as a part of the AIS
3.2.1.2 The method for organization of the cost management AIS
According to the survey data of 197 survey forms at 197 leather and footwearenterprises, 100% of the leather and footwear enterprises fully utilize the processes inthe cost management AIS However, the organization of data flow diagrams forprocesses has not been paid attention to by the leather and footwear enterprises, theresults of organizing data flow diagrams are shown in Table 3.3
The results of the survey on the data flow diagrams organization in the costmanagement AIS show that 100% of the leather and footwear enterprises do notorganize and disseminate the data flow diagram to all employees of the accountingdepartment in general and the employees in charge of cost management accounting inparticular
3.2.2 Real state of organization of the cost management AIS
Results of the research into the real state of the human organization of the costmanagement AIS in the leather and footwear enterprises has shown that, although theleather and footwear enterprises have not yet organized the accounting managementapparatus in general and the cost management accounting in particular, the enterprisesstill have accountants who performs the functions of the cost management AIS.Although there is no professional designer, developer or facilitator for the costmanagement AIS in the leather and footwear enterprises The facilitators, if any, arethe main IT staffs who mainly work on computer support or guidelines for usingsoftware (if any), the users of the cost management AIS are virtually the accountants
or persons-in-charge directly responsible for the internal reports on expenses to themanagers, and the managers are directly responsible for management of costmanagement for the enterprises; but the results of the survey into the knowledge,