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Management accounting - financial reporting - Essay Example

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College
Essay
Finance & Accounting
Pages 12 (3012 words)

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Recent literature suggests that the environment that supports management accounting practices have changed considerably with advances in information technology,mounting competition among companies,globalization of businesses,economic recession,new management strategies and the shift of focus to customer services and improved quality. …

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Management accounting - financial reporting

Recent literature suggests that the environment that supports management accounting practices have changed considerably with advances in information technology, mounting competition among companies, globalization of businesses, economic recession, new management strategies and the shift of focus to customer services and improve quality. To support such changes, companies have altered their management accounting practices to adapt to the ever changing environment. There is sufficient research done by the authors discussed in this work, to support such a statement. The authors have also identified the factors that led the companies to implement such changes in their respective subject groups.To remain competitive in such a globally advanced environment, developing countries have introduced new cost and management accounting systems such as activity-based costing (ABC), activity-based management (ABM), target costing, product life cycle costing, quality cost management, customer accounting and the balanced score card (BSC) approach to performance measures. The difference in the systems used by the developed and developing nations can be attributed to the difference in cultural values between them. The systems in practice in the developed nations need not suit the developing nations as the environments surrounding the two are significantly diverse.A study of the South African firms by Waweru et al (2004) revealed that on average 63 percent of the management accounting changes were implemented in the last decade ...
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