Management Accounting : Doc
Added on 2020-03-28
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MANAGEMENT ACCOUNTING
Management accountingIntroductionThe MA research can be traced to 1950 in the U.S and was a response to the Ford Foundation work toenhance the business schools. This contained more specification on the concept of social science. There hasbeen many cases of MA research based on social science and was done by the non accounting facultybecause the accounting faculty were not experienced in the conduct of social science research. Over theyears, experts had devoted significant time period in putting their major significance about managementaccounting system. The experts and researchers had administered in-depth study in the field of managementcontrol system and its outcome on the subject and thereby, the researchers at different point of time theyhad encountered enormous challenges on the topic (Brown, 2013). The research points out, as theestablishments and their strategies are aggressive and competitive, the formation of design, utility andadvantage of the management control structure to have an impact only the factors like environment andwork uncertainty (Bisbe et. al, 2007). The MA research is done by those accounting faculties who have astrong command in the field of social science research as accounting in the present scenario containsdoctoral programs that are based on social science research method and theories. The MA research is into practice for the last sixty years and here I have a chance to assess the concept ofMA research. The evaluation is based upon three questions that are addressed.1.In what MA topic do we have established knowledge2.The theme that are currently present in MA research3.What is required to be learnt in MA, going forward?In what MA topic do we have established knowledge?Established knowledge on MA topic is about to happen after innumerable researches have projected on the topic over a considerable time frame. As per the definition of Merriam-Webstar established is defined as ‘tocause something to be known widely and accepted. Going through the definition of established knowledge it can be explained that the established knowledge as drawing power that is accepted on a large spectrum ofthe establishment and finds places beyond the boundaries. Established knowledge in management is a subject of research and academics has been discussed all the time and carried out their research on the subject. Established knowledge can be compiled in the management accounting are from budgets, cost of 2
Management accountingthe product, performance measurement, and evaluation of the measurement (Chenhall, 2007). The information gathered must be authentic in nature and unquestionable. Therefore, established knowledge hasthe power to influence decisions so academics are studying MA topics in the direction of established knowledge which is extensive in nature and power to provide solutions in the decision-making process. Therefore, the established knowledge or the conventional expertise in management accounting can extend great help in formulating guidelines and in taking the correct decision.Management Control system Individual MA research studies on MCSs does not assess the MCS in totality rather stress upon a single or few of the management control that is MA information or control of various types. Researchers have acknowledged the application and importance of management control system in MA. Studies are done based on the management control by circumstantial components like the framework of the organization andcompetitive planning. And if there is any shortcoming in between the circumstantial factors than it will have an adverse impact on the performance of the system. MCS research caters to three MA topics:Budgets and budgeting that is compensation based on budget, the goal difficulty in budget, etcPerformance contingent incentives that are bonus that applies on performance that is measured or the difference that exists between budget goal and performance that is measured.Measurement of performance and measures like adjustment of performance for the influence of the uncontrollable.The above three MA topic play a leading role in planning and controlling. An extensive research has provided evidence on the theory of the three MA topics. The vital reasons are environmental and uncertainty of the task and asymmetric information. The recent research impact are performance of individual or pertains to individual. Cost Accounting system in Management Accounting Academics have come out with two distinct analysis of cost accounting attributed to management accounting research. MA research on cost accounting has shown two main lines of inquiry. One of it focuses on the cost estimates accuracy that is provided by various cost accounting methods. Such a researchleads to evidence on the validity of three assumptions that needs to be proper for activity based costing so that accurate cost estimate can be provided. Activity cost derived not only by the volume but also by non-3
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