Short Review about Management Accounting

Question 1: Comparative Analysis of Strategic Management Accounting In German- And English-Language General Management Accounting TextbooksThe reason why strategic management accounting is not integrated into the textbooks within a coherent, consistent framework is because; strategic management accounting is of a multi-faceted nature and does not have a proper accepted framework, i.e. it does not provide a framework of exclusive and independent sub-concepts.

Strategic management accounting is more like a patchwork rather than a framework.The main findings of the research are that; it has been found that textbooks do not use the term strategic management accounting on a regular basis, the terms strategic costing, strategically oriented management accounting and attribute costing are used more. Concepts that are related to strategic management accounting are usually not presented as a part of strategically oriented chapter. Finally it’s been found out that accounting education makes sure that future management accountants have the skills they need before they enter the workforce rather than finding themselves redundant as a consequence of a changing management process.Question 2: How CFO's Determine Management Accounting Innovation: An Examination of Direct and Indirect EffectsCFO is one person who is in charge developing and operating the organization’s MAS and it also depends on his/her willingness to commit to innovation and to act a sponsor of the new system. It has been believed that age, tenure and educational background may be indicative of the CFO’s innovativeness.

The main findings of the research are that; it has been found that in the case of MAS innovation it is the responsibility of the CFO to adopt and implement new accounting techniques within the organization. It has also been found that organizations which experience performance downturn are more likely to take risks and adopt innovations. And it has also been found out that MAS has the ability to affect the strategy implementation and has the ability to affect the strategic change along with ability to interact with strategy to determine performance. And finally it’s been found that younger; less tenured and business oriented CFO’s are more likely to adopt innovative systems.

Question 3: 'Characteristics of the Strategic Planning Process and the Relevance of Management Accounting: Evidence from German DAX30 CompaniesThe authors are suggesting that “management accounting to play a major role during the strategy process”, why, because management accounting and strategy are very closely related and the management accountants have a string impact on strategic decision making and choice. Management accounting contributes greatly to strategy process in the following ways; during the formulation phase, during the implementation phase and as a catalyst to achieve the states described above. For example, management accounting has the ability to leave an impact on strategy process in the form of contribution.The important findings of the research are that management accounting plays a vital role in strategy process. For example, it was found that in a decentralized strategic planning process that the strategy implementation is based on business units and independent of holding. It was also found out that institutionalized strategy process is important for the company’s success.

And finally management accounting has a high influence on the strategic control phase of the strategy process.Question 4: Organizational Founding, Strategic Renewal and the Role of Accounting: Management Accounting Concepts in the Formation of the "Penny Post"Management accounting techniques that were adopted to reform the post office (British postal system) were considered to be synonymous with the Post Office’s redesign in pursuit of efficiency. They techniques which were applied were value chain analysis, activity based costing and management, benchmarking, and target costing.The techniques that were adopted at the post office were very effective, these techniques showed that by redesigning the business process the post office will be able to generate cost saving along with the increase in the volume of mail, which is brought on by the decrease in the price would lead to positive effect on the income of the post office, why, because operational leverage will be available in transportation and there will be opportunities to reassign labor from non-value-added to value-added tasks. The innovative changes, due to the management accounting techniques, that were brought on the post office had efficient and distributional consequences, but mostly efficient.Question 5: Management Accounting and Knowledge Management: In Search of IntelligibilityManagement accounting is considered to be a body of knowledge which distributes the information across all of the organization, i.

e. management accounting is knowledge which is converted into information and this information is used by the managers to carry out actions and decisions, whereas accounting is just one of the many facets of knowledge management activities. The thing is that accounting does not have the ability to leave an impact on the organization, where management accounting can. Information regarding accounting basically will help the organization to enable different activities to be classified uniformly and which can be altered so that it can be controllable by the managers and functional. Management accounting on the other hand has the ability to become a major part of knowledge management activities, where knowledge is considered to be actionable information. The knowledge assets are managed by the organization using the accounting’s codifying and abstracting properties which help to deploy accounting as a principal driver of knowledge based action.

Question 6: Predicting Change in Management Accounting and Control Systems: Additional Evidence from AustraliaIt has been said that organizations need modern management accounting control systems so that they are able to adapt to the changing organizational and social environment. The author is predicting change in the management accounting and control systems because it has been seen that there is a great deal of competition in the present, therefore there is a greater need for sophisticated control systems that provide organizational managers with quality information for improving decision making so that the organizations are able to enhance their competitiveness.Decentralization is also one of the causes why the author is predicting change in the management accounting and control systems, why, because decentralization provides low level mangers the opportunity to make decisions, and with the spread of decision making there is an increase in innovativeness. And lastly the firm size also plays a part in brining change in the management accounting and control systems because they have the ability to affect the organization design and the use of management systems for decision making.