The Role Of Management Accounting And Management

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The development of management accounting and management accountants in much of society have been changed. In this paper, we will discuss the hybridisation and change in nature and role of management accounting and management accountants. The Evolution of Management Accounting From 1981 onwards, the Management Accounting Practices Committee outlines the definition of management accounting to ‘the process of identification, measurement, accumulation, analysis, preparation, interpretation, and communication of financial information used by management to plan, evaluate and control within an organisation’. Kaplan (1984) states that management accounting must serve the strategic objectives of the firm; it cannot exist as an independent…show more content…
Regulatory bodies, government agencies and other institutions They frequently see ‘something has to be done’ even though those alleged problems have nothing self-evidently to do with accounting. However, with some guidance, people can often be persuaded to recognise hitherto unidentified connections and to appreciate that tan altered way of accounting might help foster or improve. Related studies too discovered the drivers behind management accounting change. For instance, in the findings of Hasselbladh and Kallinikos (2000). They note that management accounting systems play a dual role in the process of change – 1) management accounting is a target of change; and 2) management accounting is a vector of change. The former circumstance occurs when management accounting change is in line with institutionalisation, for it is optimised to provide organisations with a force of rationality which can legitimise them in the field which they operate. The latter circumstance happens as changes can be implemented, rejected or partially accepted depending on how changes are internalised across organisations and on the element of the management control system which is having an effect on the organisational actors. The key in the process is the vagueness rather than amplification of the idyllic driving change. Traditional Role of
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