ADVANCE MANAGEMNT ACCOUNTING Author Note Introduction 2 Discussion 2 Week 1- The changing role of management accounting

Running head: ADVANCE MANAGEMNT ACCOUNTING
ADVANCE MANAGEMNT ACCOUNTING
Name of the Student:
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Author Note

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Week 1- The changing role of management accounting............................................................2
Week 2- Strategic management accounting...............................................................................3
Week 3- Sustainability and management accounting................................................................4
Week 4- Management control system........................................................................................5
Week 5- Semester examination..................................................................................................5
Week 6- The management control role of the management accounting....................................5
Week 7- Financial result control system....................................................................................6
Week 9- Incentive and business performance management......................................................7
Week 10- Performance measurement issues and corporate governance...................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction
This is a reflective report of the whole semester. This report includes all the details
that I have studied and learned during this semester. This semester is consist of the ten weeks.
The topic of the first week was changing roles of the management. In second week, I have
learned about the strategic management accounting. In third and fourth week was about the
sustainability and role of the management accounting. There was no learning in the fifth
week as there was mid semester exam. Again, we have learned about the roles of
management accounting in the sixth semester. The seventh semester was all about the
financial result control system. In the eight semester, I have learnt about the incentive and
business performance management in the ninth semester. Lastly, in the tenth semester I am
learning about the performance management issues and corporate governance. I have learned
the several thing in this course including the above stated topics. The report summarises and
present the all the learnings of the entire semester. The discussion section of this report
includes the brief of the every topic of the all weeks.
Discussion
Week 1- The changing role of management accounting
The topic of the 1st week was “the changing role of management accounting”. In this
topic, I have learned how the role of the management accounting is changed in the last few
years. I have learned that the management accountants witness the significant changes in their
roles as the previously management accountants was used to perform the tedious
scorekeeping roles but now the they are performing the proactive business consultancy roles
(Bowen 2016). Parker defined the management accounting as the poor cousin of financial
accounting as the management accounting was performing the role of organisational cost
keeping and budgeting along with the costing and budgetary variance analysis. The

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management accounting came into the existence in the 1925 and faced the slow down
between the year 1925 to 1985. During the slow- down time the management developed more
in the both manufacturing and non- manufacturing environment.
After the development in management accounting, the management accounting stared
adopting the new phase named globalization (Bryson 2017). The globalisation means the
growth in the mobility of services, information, commodities and good across the
international level. Further, I have learned about the different strategic approaches of the
global organisation those are multinational approach, transitional approach and global
approach along with their approaches and different case studies (Bush, Bell and Middlewood
2019). The each approach implies the different degree of centralisation versus
decentralisation, standardisation versus differentiation and strategy integration versus local
responsiveness. Lastly, this section help me understand the corporate governess theory.
Week 2- Strategic management accounting
Those management accounting system, which support the new changed role of the
management accounting is commonly known as strategic management accounting. The
strategic management accounting based on the idea that the accounting should be specifically
design to the strategies and environment of the business. I have learned that the main role of
the strategic management accounting are to provide a range of internal as well as external
information for making the strategic decision by analysing the sociological, political,
economic and the political factors that affect the business of the firm (Mårtensson et al.
2016). From this, I have also learned the different scopes of the management accounting,
financial accounting and the cost accounting. This also provided me the knowledge about the
organisational changes and the changes management accounting system. Further, this also
help me to understand the effect of the organisational change in the organisational structure
and the organisational culture. Further, in this week I have learned about the strategic choices

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in the management accounting system along with the issues of strategy choices, factors that
affect the choice of the strategy, relation between the vision, mission and strategy, different
types of the strategy and the implication of them in the management system (Honggowati et
al. 2017). The next learning from this week was all about the strategy formation and strategic
control. In this topic, I have learned about the four levels of control and their internal relation,
constructing the strategy map, designing and applying the balanced scorecard, formation and
implementation of strategy in the firm, identifying and removing the unused capacity and
evaluating the balanced scorecard. Lastly, this helps me to understand the theatrical
perspectives of the management accounting.
Week 3- Sustainability and management accounting
The week was all about the sustainability and management accounting. In this week, I
have learned that the increase in the number of the people, who recognises the crisis of the
sustainability. This sustainability includes the issues in the climate change and the impact of
the globalization on the standard of living in the developing countries (Morden 2016). The
environment, economics and the social performance are dependent to each other in the time
and space. The sustainability can be defined as the development that meets the present needs
with compromising the ability of the future generation to meet their needs. This also help me
to understand the importance of the eco- justice. This make me understand the how the
sustainability helps to maximising the social good. This also explains the impact of the
organisation in the social in externalities as well as internalities. Further, I have understand
the environmental management system (Otley 2016). Along with the, different business case
and the strategies for the sustainability. Lastly, this described the life cycle analysis of the
organisation and the accounting tools for the sustainability management.

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Week 4- Management control system
There are mainly three management control alternatives. Those are action, personnel
and culture control. The management control is taking the steps to ensure that the employees
should perform those role or function, which are good for the organisation. There are mainly
three control issues are present in any organisation (Maas, Schaltegger and Crutzen 2016).
The management control focuses on the action taken, result produced and the types of the
people employed and their shared values and norms. The action control ensures that
employee perform certain action that are beneficial to the organisation and their
effectiveness. There are basically four forms of action control named behavioural constraints,
use of pre- action review, action accountability and use of redundancy technique. This also
explain the different method of implementing personal control in the organisation along with
the merit and demerit of the action control (Stacchezzini, Melloni and Lai 2016). Lastly, this
week’s lectures explained the cultural control along with the five ways to Sharpe the culture
and their effect on the people.
Week 5- Semester examination
I have not learned anything the fifth week as there was the schedule for the mid
semester examination.
Week 6- The management control role of the management accounting
The sixth week provided me the information about the cost of control that includes the
control benefits and the control cost. The control benefit is the higher chances that the
employees of the firm to work hard to serve the interest of the firm. While, the control cost
consist the direct out of pocket cost and the harmful side effects. This week also provides the
brief information about the behavioural displacement, competitiveness, operating delays,
negative attitudes, adaption costs, national culture differences, local institutions, foreign

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currency exchange and the local business environment (Schaltegger, Burritt and Petersen
2017). In the another part of this week, I have learned about the good control, tight action
control, tight result control, tight people control and the control combinations. The last
section of this week thought me how to design and manage the control system of any
organisation. The basic of the designing are what is desired, what is likely to happen, what
control should be used and how tightly should each be applied (Tzivanidis et al. 2016).
While, the control change system is based on the increased formalization of procedures and
the development of more elaborate information system.
Week 7- Financial result control system
In this, I have learned about the budget, behaviour and beyond budgeting philosophy.
This further, help me to identify the weaknesses of traditional budgeting and the budget
games. This also help me to understand the employee incentive plan and the utility of
budgets. The beyond budgeting philosophy is based on the philosophy of devolved leadership
via radical decentralization in the place of traditional command and control model
(Vovchenko 2016). This also explains the changes in the business world. From this, I have
learned about the six principles of devolved leadership. Those principles are customer focus,
network of team, empowerment, responsibility, open information and culture statement. This
also includes the six adaptive process. Those are relative goals, relative rewards, action
planning, control, resources as needed and co-ordination as needed. This informed me about
the outcomes of the open forum of better budgeting and explain the concept of the better
budgeting (Kaplan and Atkinson 2015). The second part of this report explained me the
financial responsibility centres of the advance management accounting. This includes the
financial result control system, their elements and their advantages. This talk about the
responsibility centres and their efficiency and effectiveness, their basic types (Steinbach et al.

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2017). Lastly, from this week I have learned about the transfer pricing concept and their
alternatives.
Week 9- Incentive and business performance management
I have learned that the incentive of every company is different. This employer pays
something extra to their well performing employee with the motive to motivate them. This
week helped me understand the three- core element of the financial result control, financial
responsibility centres, formal management process and motivational contracts. This also help
me to understand the differences between the positive incentive and negative incentive. The
positive incentives are rewards while the negative incentives are punishments (Zabri, Ahmad
and Wah 2016). This also taught me the different form of the rewards, compensation
package, short- term incentive plan, long- term incentive plan, purpose of incentive, key
elements of incentive, cut offs, group rewards and bonus determination approach. In the other
part of the week, I have learned the measures and effects of the financial performance. This
provided the list of the measures generally used by the firms and their merit and limitation.
Week 10- Performance measurement issues and corporate governance
The tenth week is the current week and I am still attending the classes of the tenth
week. So far, I have learned the more about the corporate governance and the boards of
director. The board of director of the any organisation has the authority, which is given by the
shareholder of the company. The boards has the ultimate control over the management of the
organisation. The main role of the board is to monitor and approved the decision of the
management along with the power of choosing, dismiss and reward the managers (Hassan,
Marimuthu and Johl 2015). Further, in this week I have learned about the duties of the
directors, independency of the board, competence of the board, audit committee of the
organisation, compensation committees and corporate governance. The corporate governance

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is bunch of the policies and principles that helps to ensure the values of the owners while
satisfying the interest of the other stakeholders of the organisation. The corporate governance
deals with the behaviour of the top management and control them.
Conclusion
I have gained the several knowledge about the advanced management accounting for
the above stated ten weeks of learning. This added a huge value in my knowledge of
accounting. Some important knowledge, information and learning are still to come as the
course is consist of twelve weeks and I am at the tenth week of the course. This is really a
good experience of learning with course and it is definitely going to add value in my carrier.

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References
Bowen, D.E., 2016. The changing role of employees in service theory and practice: An
interdisciplinary view. Human Resource Management Review, 26(1), pp.4-13.
Bryson, J., 2017. Effective library and information centre management. Routledge.
Bush, T., Bell, L. and Middlewood, D. eds., 2019. Principles of Educational Leadership &
Management. SAGE Publications Limited.
Hassan, R., Marimuthu, M. and Johl, S.K., 2015. Diversity, corporate governance and
implication on firm financial performance. Global Business and Management Research, 7(2),
p.28.
Honggowati, S., Rahmawati, R., Aryani, Y.A. and Probohudono, A.N., 2017. Corporate
governance and strategic management accounting disclosure. Indonesian Journal of
Sustainability Accounting and Management, 1(1), pp.23-30.
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.
Maas, K., Schaltegger, S. and Crutzen, N., 2016. Integrating corporate sustainability
assessment, management accounting, control, and reporting. Journal of Cleaner
Production, 136, pp.237-248.
Mårtensson, M., Höglund, L., Holmgren Caicedo, M. and Svärdsten, F., 2016. Management
accounting of control practices: a matter of and for strategy. In the 9TH INTERNATIONAL
EIASM PUBLIC SECTOR CONFERENCE, held in LISBON, PORTUGAL, SEPTEMBER 6-
8, 2016..
Morden, T., 2016. Principles of strategic management. Routledge.

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Otley, D., 2016. The contingency theory of management accounting and control: 1980–
2014. Management accounting research, 31, pp.45-62.
Schaltegger, S., Burritt, R. and Petersen, H., 2017. An introduction to corporate
environmental management: Striving for sustainability. Routledge.
Stacchezzini, R., Melloni, G. and Lai, A., 2016. Sustainability management and reporting: the
role of integrated reporting for communicating corporate sustainability management. Journal
of Cleaner Production, 136, pp.102-110.
Steinbach, A.L., Holcomb, T.R., Holmes Jr, R.M., Devers, C.E. and Cannella Jr, A.A., 2017.
Top management team incentive heterogeneity, strategic investment behavior, and
performance: A contingency theory of incentive alignment. Strategic Management
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Tzivanidis, C., Bellos, E., Mitsopoulos, G., Antonopoulos, K.A. and Delis, A., 2016.
Energetic and financial evaluation of a solar assisted heat pump heating system with other
usual heating systems in Athens. Applied Thermal Engineering, 106, pp.87-97.
Vovchenko, N.G., Holina, G.M., Orobinskiy, A.S. and Sichev, R.A., 2017. Ensuring financial
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Zabri, S.M., Ahmad, K. and Wah, K.K., 2016. Corporate governance practices and firm
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