The Decision Put Forward By Robert S. Kaplan

Hilton, R. (2011). Managerial accounting: Creating value in a dynamic business environment (9th Ed.). McGraw-Hill. Hardcover ISBN: 9780073526928.

S., & Hassan, M. K. (2012). The domination of financial accounting on managerial Commerce & Management, 22(4), 306-327. doi:10.1108/10569211211284502

Garrison, R., Noreen, E., & Brewer, P. (2015). Managerial accounting (Fifteenth ed.). New York, NY: McGraw-Hill Education.

Folk, M., J., Garrsion, H., R., & Noreen, W., E., (2002). Introduction to Managerial Accounting. New York, NY: McGraw-Hill/Irwin.

Bhimani, A., Horngren, C., Datar, S., Rajan, M. et al. (2012) Management and Cost Accounting. 5th ed. Edinburgh: Prentice Hall, p.369 - 378.

The purpose of this group project is to help you integrate the managerial accounting concepts we

Edmonds, T. P., Tsay, B., & Olds, P. R. (2011). Fundamental managerial accounting concepts (6th ed.). New York, NY: McGraw-Hill Irwin.

The Burns and Scapens framework for analyzing managerial accounting change was built on the study of old institutional economics, which sees "economics as a process of social provision, subject to multiple and cumulative causation." This view culminates in a model that argues that the managerial accounting practices at institutions are subject to a process of constant change, influenced by routines and rules. The institutions contribute to these routines and rules, but so do actions on the part of managers within the institutions. By combining multiple influences over time, we arrive at modern managerial accounting practice. In other words, Burns and Scapens tells us that managerial accounting practice changes over time, influenced by a number of factors including rules, routines and actions.

Critically examine the above statements by analysing the contribution of traditional management accounting techniques in an organisation, the necessity for modern management accounting techniques and the role of accountants in the implementation of the modern management accounting techniques in an organisation.

Under this competitive environment, one traditional performance measurement may not be good enough to fit all the businesses. In order to help businesses measure their performance accurately, the innovations and changes may take place when designing and adopting the management accounting system. Focusing on innovations and changes part firstly, two major schools were introduced to companies. They are the stakeholder approach and shareholder approach, respectively.

Frederick Wilson Taylor has become known as the father of scientific management, and his work had a significant impact on the progressive period. When first developing the formal definition of managerial accounting, Taylor’s studies were heavily referenced throughout the process. This definition defines managerial accounting as “the process of identification, measurement, accumulation analysis, preparation, interpretation, and communication of financial information used by management to plan, evaluate, and control an organization and to assure appropriate use of and accountability for its resources" (Kulesza,

The management of a company needs to develop cost and management accounting systems which will provide adequate information about main impacts on cost characteristics and companies performance. The cost and

Arnold and Hope (1983) defined that management accounting is considered to provide the information to managers to assist them to make decisions about the ways in which an organisation’s resources should be allocated. Puxty (1998) said that a framework should be provided because of many different approaches that can be taken to define a subject. Also, in order to understand management accounting, it is necessary to study the assumptions and reasoning behind the various frameworks (Puxty, 1998). Therefore, Puxty (1998) categorised a wide variety of perspectives on management accounting into five frameworks, which are the traditional paradigm, the systems movement, the

The cost accounting system was first used by the Louisville and Nashville Railroad in late 1860’s.By using this system, the company was able to determine the comparative cost per ton-mile among its branches, rather than considering the earnings or net income evaluated by its managers. Later in 19th century, the accounting methods developed by the railroads were adopted by many large manufacturing firms in United States.

Number of researchers during 1990’s have paid attention to the complex nature of accounting change (Briers & Chua, 2001). Balanced Scorecard (BSC) and activity based costing (ABC) are considered by many researchers as prominent new management accounting techniques which have became global expert systems (Jones & Dugdale, 2002; Ax & Bjornenak, 2005). The main actors who are involved in the development of these expert systems can be identified as business schools, consultants, business media and accounting professional bodies (Major & Hopper, 2005). This phenomenon has attracted the attention of researchers,