Management Accounting And Control Systems

1998 Words Apr 13th, 2016 8 Pages
In the last 20 years, the business environment has changed dramatically with the widespread adoption of the internet and other massive technological advances, it has been argued that with this new and volatile environment that management accounting and control systems are more important than ever to deal with the changing times. In this essay we will discuss whether management accounting and control systems are important in the new business environment, major changes to the business environment and how they have changed the role of management accounting and control systems, and finally we will study an organisation and recent changes that have affected its business environment.
If we look at the definition of management accounting, it states that management accounting is a process that helps managers make informed decisions by creating planning and performance management systems that help to control a business and guide it to identify and realise the businesses strategy (Institute of Management Accounants, 2008). With new technology being created over the last 20 years, it is clear that business environments have changed wildly and will require managers to make very vital decisions regarding the operation of a business in order to succeed in the new environment. For example, the structure of organisations all around the world have moved to a more decentralised structure compared to the classical hierarchal structure (Chenhall & Morris, 1986), this means there is more…
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