Questions On Strategic Management Accounting

2396 Words10 Pages
Over the past recent years a new term namely “Strategic Management Accounting” has been introduced in management accounting discussion. In the following years and still today, a debate about what SMA comprises has been oriented. It is considered widely by organizations while drafting and implementing strategic planning and control system in an organization. This essay will elaborate the understanding and analyzing of work done by CIMA and some other surveyors in relation to this field. Secondary part will be consist the comparison and contrast between Activity based costing and traditional costing system in light of work done by Cooper and Kaplan in this field. While final section will highlight the brief analysis of merits of Target…show more content…
CIMA highlighted the following features or elements of Strategic Management Accounting:

1- The scope and role of SMA tends to identify the critical success factor of the competitive strategy of both external and internal factors of business.

2- It elaborates the needs for adoption of financial information to develop the main competitive strategy of business plan. a- Analysis the risk and rewards of each competitive strategy. b- Provide sufficient segmented accounting information.

3- Strategic management accounting provides the company management with competitiveness of the pricing strategy on basis of both financial and non financial information from external resources.

4- Strategic management accounting revolves around the higher vision and mission of the company. It provides help to higher management to make decision regarding planning and controlling of different elements and segments of business.

5- This technique of collecting data by survey method becomes helpful to produce average figure for competitive analysis which pre informs to producers, researchers and policy makers.

Furthermore many other researchers and authors recognize the importance of Strategic Management Accounting in the modern Era of time. e.g. (jones1988;
Get Access