Management Accounting Practices at Hospitality Business in Yogyakarta, Indonesia

The rapid changing of business environment lately is significantly. It will change the management accounting practices in an organization. The main focus of management accounting has always been to improve the organization performance and profitability by providing relevant information for planning, controlling and decision making. The more complex business environment should be handled by more sophicticated management accounting practices. International Federation of Accountants or IFAC (1988) stated that there are 4 stages of mangement accounting evolut ion, which are cost determination and financial control, management planning and control, reduction of waste in business Process and creating value through the effective use of resources. This paper has two main objectives. Firstly, it ident ifies how the management accounting practices in hospitality business were. Secondly, it reveals the stage of management accounting evoluton in hospitality business. This study uses 30 management accounting tools to represent the current management accounting practices in hospitalty business that represent 5 management functions: cost determination, management planning and control, performance evaluation, decision making and strategic analysis. By using 61 stars hotels, the result indicated that management accounting practices in hospitality business are still dominated by “tradit ional practices”. Refering to IFAC’s management accounting evolution theory, in general, the management accounting practices in hospitality business were in stage 1 and 2. The study also revealed that there is no difference among stars hotels in costing and planning and control, performance evaluation, decision making and strategic analysis