Management Accounting Change - 2028 Words

ManagementAccounting Change ------------------------------------------------- Describe the ‘Challenge of Management Accounting Change’ in light of recent research findings and discuss, how can this change help an organisation, in getting its strategic, tactical and operating objectives? Management accounting change and the continuously changing roles of management accountants have dominated accounting literature for the past few decades and the theme of management accounting change procedures has been a topical issue of many studies such as Baines and Langfield-Smith, 2003; Kapla, 1985 and Granlund and Lukka, 1998, just to name a few. In order to understand the†¦show more content†¦It is in this context that changes in management accounting have taken place. Changes in information technology have allowed for accounts and information to be dispersed around the organisation and managers have a more profound and hands on role within a firm. This in turn indefinitely has an impact on how objectives are met and how strategies and tactics are implemented to achieve, said objectives. This has led to a decentring of accounting knowledge, meaning that it is not only specified accountants who have knowledge of a company’s accounts, but also managers and their subordinates. This gives managers a greater ownership of information and it also means that they have to have an increased knowledge of accounting systems. Ezzamel (1997) states that a lack of change in accounting practices is presented as being not only detrimental to business interests but also threatening to corporate survival. However we must also look at external environmental factors and how they affect management accounting systems. A definition stated by Macy and Arunachalam (1995) define an external environment as a phenomenon that is external and have either potential or actual influence on organisations. However we must reiterate the fact that organisations of no control whatsoever over external factors. It is in an organisations best interest to take any external factors that could affect their operations, into consideration and toShow MoreRelatedManagement Accounting Change: Actor-Network Theory vs. Evolutionary Theories3091 Words   |  13 PagesManagement accounting â€Å"lies not only in techniques but also in the changing context in which such techniques evolve; not only in the implementations of techniques, but also the effects of such implementations; not only in one-sided but also in multiple aspects† (Alawattage and Wickramasinghe, 2007). Therefore there have been many bodies of t heories that have explored the external pressures as well as internal transformations of management accounting change. The two bodies of theory that we areRead Morefunctional and product departamentalization Essay705 Words   |  3 Pagesand accountability in a specific product department allows top management to coordinate actions† (Gibson, Ivancevich Konopaske, 2011, p. 403). Product departmentalization organizes employees based on product lines or set of services they work with. Each product line has a department of its own, and each department has specialists in all of the functions needed to produce and sell that product such as marketing, manufacturing, accounting, and human resources. The department in this type of companyRead MoreThe Issue Of Managing Organizational Change1335 Words   |  6 Pagesorganizational change is important within management theory and practice. A number of cases have shown that attempts to manage organizational change had frequently fai led. Therefore the objective of this paper is to find why does the failure almost occur in an organisation? 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She notes that these are notRead MoreIf the change you have selected were to take place, describe the effectiveness and impact it will1300 Words   |  6 PagesIf the change you have selected were to take place, describe the effectiveness and impact it will have on various functions within the organization. Explain why, supported by research (Word Count = 300 plus/minus 10%) The changes proposed in the answer above will definitely impact the organizational performance by increasing the effectiveness of various functions. The following changes were proposed earlier: Backup budget: Having more funds and liquidity will allow the organization to have moreRead MoreEffective Communication : An Effective Change Agent962 Words   |  4 Pagesproperly pass along information, lower any confusion or angst, as well as foster open communication from employees (Appelbaum, et al, 2015; Meredith, 2013). 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Strategic management accounting is market driven with long-term pricing and profit motive. It is integrated and has value and external focus. Strategic management accounting raises the issues and addresses the weaknesses of traditional management accounting in the modern market place. Strategic management accounting requires the applicationRead MoreSection 1.1: Aim Of Report. This Report Will Briefly Go1157 Words   |  5 Pagesbut connected topics, the first being the past and present role of a management accountant and how changes in the industry will then affect the future role of a management accountant. From this, the report will evaluate the adoption of strategic management accounting and its effect on performance, then finally how this course will prepare me for a career in management accounting. Section 1.2: Introduction Management Accounting can and has been defined as many different things since its creation