THE MANAGEMENT ACCOUNTING

Running head: MANAGEMENTACCOUNTING
Management accounting
Name of the Student
Name of the University
Author Note

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Introduction:
The paper is developed to explain the concept of strategic management accounting
and the practice of the system between developed and developing economies. For the purpose
of making comparison between the practice of the system of the strategic management
accounting between developed and developing economies, the two countries that has been
chosen is China and USA. Strategic management accounting systems is one of the types of
the management accounting that makes the analysis and provision of the data of management
accounting in monitoring and development of the strategy of business. Many new system of
management accounting practices are being developed in response to the sophisticated and
modern busies environment and emphasizing on the use of information and accounting data
concerning operations and business strategies (Tajbakhsh & Hassini, 2015). In the developing
economies, the need for the management accounting tool application have been able to yield
good results.
Discussion:
Strategic management accounting is the analysis and provision of data of management
accounting about the business and competitors for monitoring and business strategy
development. It was in 1980s the strategic management accounting concept came into
prominence as the approach and new techniques designed to restore the relevance that has
been lost in the management accounting. The decision making associated with the strategic
financial administration work and business operations is examined by the strategic
management accounting. The advanced approach addresses the strategic issues for

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developing the superior strategies using the financial information in a broader context that
helps in the sustainable competitive advantage achievement (Hasan & Chyi, 2017).
Developed counties witnessed change in the practice of the system of management
accounting due to various evidences. It is suggested by the recent literature on the
management accounting that there has been change in the environment in which the practice
of management accounting is done and such change is attributable to the highly competitive
environment, information technology advancement and economic recession. With such
environmental change, literature records for some notable techniques of accounting
management such as strategic management accounting, activity based techniques, kaizen
costing, target costing, total quality management and balance scorecard. Significant impact
has been created on how the people do their business in any organization either non-
manufacturing or manufacturing due to turbulence and competitive business environment and
to sustain in the market, companies are required to compete at both the national and
international level (Asgari & Darestani, 2017).
The tasks of strategic management accounting gets complicated in measuring the
performances due to the complexities of the contemporary organizations. There exist
different between the practice of the management accounting because of the significant
difference between the companies operating in the developed and developing economies. The
central management of the multinational companies operating in the developed or developing
countries are provided by the strategic management accounting. During the implementation
of the strategy of companies in the developed countries, a thorough picture of the results is
provided by the correlation between financial and non-financial measures. One of the key
parts of the organizational infrastructure in the developed economies is the adoption of the
system of integrated performance measurement (Piotrowicz & Cuthbertson, 2015). That is
the system is incorporated in all the business cycle management aspects. The adoption of the