Traditional Management Accounting | Essay
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Added on 2019-10-16
Traditional Management Accounting | Essay
Added on 2019-10-16
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ACCOUNTING AND FINANCEArgumentative Essay
Traditional management accounting and how it has evolvedINTRODUCTIONThe changes being incorporated in the recent years in the role of management accountants havebeen argued strongly in the academic literature due to the development of various emergingadvanced and sophisticated management accounting (MA) systems, tools and techniques(Guilding, Cravens and Tayles 2000; Tsamenyi, Cullen and Gonzalez 2006; Scapens andJazayeri2003). The emerging management accounting techniques like the balanced scorecard(BSC), activity-based costing (ABC), strategic pricing, quality costing, strategic managementaccounting (SMA), throughput costing etc. have been investigated and examined by variousresearchers and academics (Atkinson, Balakrishnan, Booth, Cote, Groot, Malmi, Roberts, Ulianaand Wu 1997;Emsley 2005). The acceptance of the management accounting tools beingmentioned above and the inherent skills being demanded from the management accountants havebeen argues in favor and against the motion (Yazdifar and Tsamenyi 2005; Kennedy andSorensen 2006). The counter argument Earlier it was seen that the management accountants were functioning assupport staff for all the decision makers but with the emergence of various tools and techniques, their roles is seen to have evolved from serving as internal customers directly to the strategic planner and business partners. Now that the management accountants are equal member of the decision making system, they have the authority and responsibility for telling the operating executives and the various types of information which they may or may not consider relevant to the business decisions and they also have the authority to improve the quality of decisions, if they desire to do so.In the main argument with the organization being highly centered on the MA tools and techniques, their benefits are usually seen to be over emphasized. According to Yazdifar and Tsamenyi (2005) the benefits of implementation of such tools have not always outweighed the cost of implementation. In developing countries, the adoption rate for new MA tools is seen to bequite low (Scapens 2000, Yazdifar and Tsamenyi 2005) suggesting that there is no drive to widen the roles of management accountants. There are various factors that are responsible for
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