Roles of Management Accountant
Added on 2021-04-24
12 Pages2343 Words117 Views
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Running head: EVOLVING ROLE OF MANAGEMENT ACCOUNTANTEvolving Role of Management AccountantName of the Student:Name of the University:Author’s Note:Course ID:
1EVOLVING ROLE OF MANAGEMENT ACCOUNTANTExecutive Summary:Management accounting is a part of accounting that provides decision-makinginformation to the managers in order to use in controlling and planning operations. Themanagement accountants are responsible for operational scorekeeping, in which accountinginformation is utilised for meeting the reporting obligation of the organisation. The growth ofinformation technologies related to management accounting, especially the ERP system, hasbeen a significant change in IT and conventional techniques of management accounting need tobe in line with the increasing advancements. Finally, the increasing need of cost classificationhas significant effect on the changing role of the management accountants in the current era.
2EVOLVING ROLE OF MANAGEMENT ACCOUNTANTTable of Contents1. Introduction:................................................................................................................................32. Changing role of management accountant:.................................................................................33. Factors influencing changing role of management accountant:..................................................54. Cost classification as a necessity:................................................................................................75. Conclusion:..................................................................................................................................8References:....................................................................................................................................10
3EVOLVING ROLE OF MANAGEMENT ACCOUNTANT1. Introduction:Management accounting is taken into account as a segment of accounting and it isinvolved in providing information to the managers that could be utilised in controlling andplanning operations. The management accountants are responsible for operational scorekeeping,in which accounting information is utilised for meeting the reporting obligation of theorganisation (Chenhall and Moers 2015). The role of the management accountants to facilitatethe management in efficient process of decision-making is agreed highly from the perspective ofthe complex business environment. This is because there is increase in demand and needs for themanagers to undertake decisions. Hence, the responsibilities of the management accountantshave increased over time in contrast to the past and their role would be active in the decision-making process of the management. 2. Changing role of management accountant:In the words of Cooper, Ezzamel and Qu (2017), the management accountants weretraditionally responsible to provide operating and financial information to the management.However, the changing organisational shape and business environment have increased theexpectations from the management accountants and they are considered as the essential part inorder to assure the success of the organisation. In addition, it is necessary for the managementaccountants to keep them aware of the competitors and customers due the changing conditions nbusiness environment in terms of time, flexibility and continual development. As the field of technology has made rapid advancements, management accountants couldbe redefined as the analysts, in which they are needed to take part in strategy formulation
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