Management Accounting : The Father Of Accounting

1415 Words Dec 7th, 2014 6 Pages
Introduction
Accounting has be defined in various ways however almost every definition will describe it as a process that identifies, measures, analysis, and report data. Management accounting has not been the same since business started; it has come a long way from early member of civilisation using stone tablets for bookkeeping. Management accounting is used to aid managers make business decisions based on predicted figures and comparisons with actual figures.
To follow is a detailed evaluation of the use and effectiveness of tradition management accounting methods, as well as the developments that have been seen including the possibilities for business to gain an advantage through their use.

History of Management accounting
‘The father of accounting.’ in 1494 an Italian monk Luca Pacioli published the first information on double-entry accounting; this system is heavily used in business today.
This system becomes used with significance during the times just before the industrial revolution; traders would use this to track their transaction in the markets.
A development came during the industrial revolution with many large companies forming in the form of mills, steel works and factories. “Owners of these large companies devised systems to summarize the efficiency by which labor and material were converted to finished products” (Geense, 2005). The systems developed at this time included cost per hour, cost per pound produced, cost per process and cost per worker.…
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