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Management Control System and Its Feasibility

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Management Accounting (BBAC501)

   

Added on  2020-03-13

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Management Accounting Topic has been the major point of discussion in the past few decades as in numerable researches have been done in this scenario. Over a substantial time span, there has been a major stress on the management accounting topics. Moreover, management accounting topics have undergone immense challenges by various researchers.

Management Control System and Its Feasibility

   

Management Accounting (BBAC501)

   Added on 2020-03-13

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MANAGEMENTACCOUNTING
Management Control System and Its Feasibility_1
Management accountingIntroductionManagement accounting topic has been the major point of discussion in the past few decades as innumerable researches have been done in this scenario. Over a substantial time span, there has been a major stress on the management accounting topics. Moreover, management accounting topics have undergone immense challenges by various researchers. The Management control system has conducted many studies in the region of Management control system and its features (Bisbe, 2008). Studies indicate the pattern of the design, advantage, and the utility of the management control mechanism gets impacted by the factors such as the task’s ambiguity and environment, structure of the organization and strategies that are competitive in nature. The external scenario that is present in the environment has a direct bearing upon the management accounting topic and hence, studies have been undertaken in this regard (Chapman et. al, 2007). In what MA topics do we have established knowledge?Established knowledge on management topic has been discussed many a times and various researches have been undertaken in this regard. Going by the definition of established knowledge established can be defined as something that is known on a grand scale and accepted or to accept that without any sort of boundation. The MA topics where established knowledge can be gathered are budgets, products cost, performance measurement and evaluation of the performance (Shield, 2015). Therefore, the areas where the established knowledge has happenedis concrete and not to be questioned. The topics mentioned above are exhausted in nature and have a capacity to provide answers that have the power to provide correct decision1. Established knowledge means concrete knowledge that has the capacity to mould the decision and therefore,there are several management accounting topics that are studied in the light of established knowledge. Management Control systemThe management control system is not investigated in totality rather examined one or more of the management control that MA information that pertains to practice, control mechanism. Studies have revealed the importance and utilization of the management control by contextual factors like structure of the organization, strategies of competitive nature and the deficiency between the factors that are contextual an impact the performance.1 Chenhall, R. 2007. Theorizing contingencies in management control systems research. InHandbook of Management Accounting Research, Volume 1, edited by Chapman, C., A.Hopwood, and M. Shields. Oxford, U.K.: Elsevier.2
Management Control System and Its Feasibility_2
Management accountingCost AccountingThere are two different inquiry of cost accounting based on the MA research. One of it shedslight on the cost estimate accuracy that results from various cost method. Such research givesevidence on the presence of three major assumptions that should be aligned for activity basedcosting (ABC) so that accurate estimates of cost can be provided. It needs to be noted thatactivity cost happens not only by volume but even by non volume drivers; a regular linear linkexists between cost drivers and the existence of overhead cost (Banker & Johnston, 2007). Obstacle limiting the production of Established MA knowledgeOn a whole, such replications can become the extension basis that can stretch to recognizing situations contain a particular limit and an application of a theory study. Moreover, this gives rise to the fact that the theory-based ideologies about why the outcomes of a study may not replicate would assist in establishing the knowledge of management accounting. (Lipe & Lambert, 2007) Besides, when the outcomes of the replicated and original studies are not effective in nature, there are various possible causes for the same and evidence on whether such causes can explain ineffective outcomes (Anderson & Dekker, 2014). On a whole, a replication study may not recognize and test every feasible cause for ineffective outcomes but it would be better if the identified replication study can be provided more credibility2. This will, in turn offerproper material on the end situation of the theories that can be utilized to predict and explain the effects and causes of management accounting. Management accounting research produces more established management accounting knowledge of studies that are more comparable are prevalent with effective outcomes (Basu & Park, 2014). However, the number of comparable studies on every issue regarding management accounting is so low that it restricts the evaluation of the consistency of the studies’ outcomes. Hence, it is very important that the effectiveness of the management accounting research outcomes be examined so that it can be ensured that the established management accounting knowledge is dependent on reproducible outcomes that necessitate replications.Common themes in MA research in present timeThe three MA topics that have been researched on a continuous basis are budgets and budgeting,incentives of performance and the measurement of performance. These three forms the crux of the management accounting and hence, be the major topic for the study. The current theme 2 Some studies investigate other effects of these three MA topics including communicationmisrepresentation (e.g., dishonest reporting), effort, judgment and decision performance, satisfaction, andstress.3
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