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Management accounting is a new branch of accounting that promotes the overall managerial performance of an organisation - Essay Example
Finance & Accounting
Pages 12 (3012 words)
Issues in Management Accounting Issues in Management Accounting Introduction Management accounting is a new branch of accounting that promotes the overall managerial performance of an organisation. Under this new accounting concept, business managers simply use accounting information to get a detailed view of the business and hence make sound business decisions…
As scholars indicate, an organisation’s management accounting discipline can have a great influence on its other functions. Mainly, management accounting discipline defines an organisation’s managerial ethics. Hence, the concept of management accounting discipline greatly relates to the firm’s corporate governance policies. This paper will particularly discuss the evolution of management accounting discipline and its relationship with other functions in organisations. The paper will give specific focus to the ethical aspects in management accounting, performance management, balanced scorecard, activity based costing and sustainability reporting. Evolution of management accounting discipline The history of management accounting can be dated back to 19th century when the process of industrial revolution compelled firms to maintain better managerial control over their business activities. During that time, most of the firms were run by a single owner or manager using their personal assets. ...