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Nama : Ira Hutami Putri

NPM : 1906340363

Accounting, Budgeting and Control Systems in Their Organizational Context:

Theoretical and Empirical Perspectives
Eric G. Flamholtz
The purpose of this paper was to explore the relationship between accounting, budgeting
and control systems in an actual organizational context not only from a theoretical perspective
but also an empirical perspective. Deeper, it examined the role of budgeting in the context of
the overall organizational control system from its theoretical perspective continued with
examined selected samples of accounting and budgetary control systems in their actual
organization settings. It argued that the process of exercising control in the organization was
significantly more complex than conventional managerial accounting theory that trusted in.
In an organizational context, the measurement was process of assigning numbers to
represent aspects of organizational behavior and performances. The accounting system was a
component of the measurement system of an overall control system, while the budgeting
system was a part of the planning system as well as the measurement system. However, either
the accounting or the budgetary system was not equivalent to the whole of a control system,
because they were lacked critical components.
The validity and implications of these ideas were represented and analyzed in the context
of the control systems of three organizations from the perspective or the meta-framework. First
was dealing with a traditional system for budgetary control that had been applied at a medium-
sized residential real estate company in a major metropolitan area of the US. The second study
was dealing with the ability of an accounting system as a part of organizational control system
function for the small distributor of industrial abrasives. The final study was dealing with an
attempt to introduce a zero-base budgeting system. The result suggested the need for a different
orientation of the role that accounting and budgeting play in the control process as well as a
broader concept of control itself.
Nama : Ira Hutami Putri
NPM : 1906340363

Political Relationships, Global Financing, and Corporate Transparency:

Evidence from Indonesia
Christian Leuz, Felix Oberholzer-Gee
Leuz and Gee examined how closely connected firms make strategic decisions and how
these decisions affect their long-run financial performance. The political connection was
chosen as an example of domestic arrangements which can reduce the benefit of global
The writers were using Indonesian data as samples because the evidence that political
connections were particularly valuable under President Suharto’s regime and often involved
access to finance so this was a suitable setting for examining the role of connections for firms’
foreign financing choices. The inconsistency of political connection with the value-creating
business strategy is interesting to learn from the side of the performance consequences of the
The results they found were the first well-connected firms that had access to preferential
financing in the country so that they did not need to access foreign capital markets. Second,
firms with political connection do not like the transparency and supervision that come with
publicly traded securities. Third, foreign securities make it more difficult for insiders to take
advantage of private control.
This concludes that while there were other things that would affect the company's long-
run performance, the results showed that having political connections showed an impact on
how companies treat global financing as their strategy and transparency.