Established Management Accounting Research
Added on 2020-03-16
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MANAGEMENT ACCOUNTINGRESEARCH TOPICS, KNOWLEDGE,THEMES, LEARNING AND CONCLUSION
ESTABLISHED MANAGEMENT ACCOUNTING RESEARCHInmanagement accounting, also known as managerial accounting is used bymanagers withprovisions ofaccountinginformation so as to inform themselves regarding cost and accountingmatter simultaneously to make better decisions. This aids the management in better assessingbetter information and performance of control functions (Yang, Yu & Wang, 2016). Establishedknowledge on management accounting topic would mean anything in this topic that is widelyaccepted and known. This will happen when results of any research survive subsequent criticism.Mostly published Management Accounting topics are briefly described as below:Management Control System (MCS)Management controls like information or practice, formal / informal / mechanistic / organiccontrols are examined as few out of many than as a whole. The studies have been performed tosee influence on design, importance or use by contextual factors. Also studies evaluateperformance based on the imbalance between the management controls and contextual factors(Sheilds, 2015). Mostly researched topics which are critical in planning and control are budgetsand budgeting measures, performance-contingent incentive systems and measurement ofperformance.These researches provide us with evidences on causes and effects of these topics. Some causesbeing uncertainty of environmental and task and asymmetrical form of information like size oforganization, decentralization, and diversification (Bebbington, Unerman & O'Dwyer, 2014).The effects that are widely researched are performance of individual or organization and itsvariance with least provided attention.CostAccountingTwo types of enquiries are pursued in this topic, one is accuracy of estimates of cost provided byvarious methods and other is environmental and organizational factors affecting organizationalsuccess or satisfaction based on different adoptions and implementations. Both these enquiriesgenerate common results like the significance of support from key organizational players,performance measurement and system of compensation, and uniformity of competitive strategy(Sekaran & Bougie, 2016).
THEMES IN MANAGEMENT ACCOUNTING RESEARCHInvestigation of the decision-influencing role of Management AccountingThe first theme is the investigation of the decision that influence role of management accounting.This investigative research helps identification of the influence on action of employees based onthe way their behavior and performance are monitored, measured, evaluated and rewarded. Thisresearch majorly stresses upon how problems that arise from adverse selection process and moralhazard can be mitigated through budgets, performance measures, performance-contingentincentives and responsibility accounting (Van der Stede, 2016). A new research of this theme isprejudiced on matters of subjective performance evaluation caused by leniency, favoritism,asymmetric adjustments for risk, performance-rating compression and anchoring on priorperformance, and the effects of such a bias on the effort. Study of Management Accounting in an inter-organizational manner contrasting existing intra-organizational contextManagement accounting in an inter-organisational context means in course of alliance, jointventures or supply chains, etc. The second theme studies the contrasting features of such aninter-organisational context with that of the intra-organisational one (Sheilds, 2015). Theinvestigation made in this research is as to how management accounting is used in order to makeselection of any design contracts, partner, cost activities, control behavior and products, andfurther to support any make-buy decisions. Tools of management accounting which are used tomake such a selection are ABC model, open-book accounting, total cost of ownership, targetcosting, value chain analysis, etc.Management Accounting research by making use of behavioral economicsThis third theme helps us to get whole explanations about the causes and effects relationship ofmanagement accounting by integrating the two theoretical perspectives namely, the neoclassicaleconomic and the psychology rather than placing reliance on either of these two perspectives.Theory-consistent evidences are provided by this research on how management accountingaffects tradeoffs of an individual between the utility of monetary and nonmonetary payoffs(Hopper & Bui, 2016). These nonmonetary payoffs can arise as a result o certain socialpsychological preferences such as fairness, reciprocity, honesty and trust;cognitive
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