Management Accounting Framework Research Articles

The Case for a Planetary Management Accounting Framework

Because of the enormous effects that humans have on the ecosystem, there is a chance that the planet will no longer be friendly to humans but rather be hostile. Scientists have proposed nine Planetary Boundaries (PB) — the global environmental limits within which the risk of disrupting the current climatic and ecological equilibriums of the planet is low. PBs are meant to serve as an indicator of the scope and urgency of the issue, rather than serving as a roadmap for fixing the problem. They are, however, difficult to apply as quantitative, scalable objectives for personal or policy decision making. This article provides an overview of how the Planetary Boundaries can be converted into actionable measures through the Planetary Management Accounting Framework (PMAF) — a framework for managing the global environment. PMAF is an environmental management accounting model where planetary quotas (PQ), or global limits, are used to evaluate environmental consequences of human activities. Each PQ sets a limit for an "environmental currency," such as carbon dioxide emissions or reforestation, that may be scaled and compared to the outcomes of human activities. The PMAF can also be used to demonstrate how the PB can be used to reflect corporate strategy, individual acts, infrastructure at the local government level, and also national policy. It facilitates the communication and applications of the PB in various spheres of human activity.

Simulation of the calculation of deviations in the system "standard-cost" on the basis of factor analysis

The subject of the research is methodical approaches used in the framework of management accounting to determine the deviations of actual indicators from the planned ones during the implementation of plan-actual analysis in the "standard-cost(ing)" system. The purpose of the work is to substantiate the expediency of using the universal tool of classical factor analysis in the process of plan-fact analysis - the method of relative differences, which simplifies mastering the methodology of calculating deviations. The methodology of the conducted research is based on the use of general scientific and specialized methodological techniques. A bibliographic review on the topic of the study made it possible to formulate the hypothesis that currently "ready-made solutions" are used to calculate deviations, without interpreting the sources of the methodology. As a result, a universal approach is proposed, which is based on the methods of analysis and synthesis, which were used to decompose the differences between the obtained actual indicators and the planned ones into components that logically reflect economic regularities and dependencies within the framework of the built economic models, therefore, the modeling method was used. Research results, their use and conclusions.This study raises the issue of the methodology of plan-fact analysis within the "standard-cost(ing)" cost management system. "Standard cost(ing) is considered an effective way of managing production costs and controlling expenses, but it requires a thorough understanding of the reasons for deviations in profit-forming factors - sales and expenses. This understanding is provided through variance analysis, which is based on establishing discrepancies between planned and actual indicators. A literature review was conducted and the peculiarities of the calculation of deviations for various components of production costs were determined. A universal approach to the analysis of deviations based on the method of absolute differences is proposed. An additive-multiplicative model of profit determination is proposed, which can be analyzed using the method of absolute differences. This approach allows you to master the principle of calculating the influence of factors regardless of specific indicators in the model, which simplifies the analysis and ensures clarity for all participants. The proposed methodological aspects of the analysis of deviations can find application in modern technologies of business analytics and contribute to the improvement of the processes of cost control and cost control. These results open perspectives for further research and improvement of the "standard-cost(ing)" system in the context of modern requirements of economic analytics.

Research on Management Accounting Framework and Quantitative Correlation Based on Hall Three-Dimensional Structure

The management accounting framework aims to improve the operation control ability. It is the integration of the comprehensive use of management accounting tools. Given the lack of an internal relationship between management methods and operation control in the previous research on management accounting framework systems, this paper puts forward the purpose of this research. We use Hall's three-dimensional structure model for reference to construct the management accounting framework based on operation control and study the characteristics of operation control with the contingency elements such as organizational structure, control methods, and ability improvement as the logical dimension; taking eight tools such as comprehensive budget, performance evaluation, and responsibility body as the knowledge dimension to promote the application of management accounting, the enterprise operation matrix is defined. DSM method is used to study the quantitative correlation between operation control and management accounting tools and reveal the quantitative relationship between management accounting tools. Finally, the case of China Unicom verifies the core role of a comprehensive budget in enterprise operation management and reveals the significant correlation and hierarchical characteristics between management accounting tools. The research methods proposed in this paper can enrich the framework theory of management accounting and have enlightenment in guiding the practice of enterprise operation and management.

Quality and costs in health care: using target costing in support of bundled payment programs

PurposeThe main purpose of this study is to provide healthcare institutions with a management accounting framework that helps them achieve their quality goals and cost targets when providing services under bundled payment schemes.Design/methodology/approachAfter providing a theoretical framework on both bundled payments and target costing, the success factors of the former are compared with the principles of the latter in order to analyze the compatibility and complementarity of these models. Afterwards, an example of their potential combination in practice is introduced and ideas for future research are suggested.FindingsIt is concluded that, apart from presenting similar underlying goals as regards quality and cost, bundled payments and target costing display elements in common that make them compatible from a theoretical standpoint.Originality/valueBecause bundled payments models are relatively new, studies on their compatibility with managerial techniques emerging from industries other than healthcare do not abound in the literature.

Developing an Environmental Management Accounting Framework for The Waste Management Sustainability of Municipalities in South Africa

The aim of the study is to identify environmental management accounting (EMA) practices currently used by the municipalities in South Africa in enhancing municipal solid waste management. To accomplish the aim of the study, 32 in-depth interviews were conducted with accountants, environmental managers and municipals managers on 10 municipalities in South Africa. Thematic analysis’s was used to analyse the data and unearthed that environmental management system, waste management system, environmental reporting, environmental training and research and development are currently used as EMA practices to boost municipal solid waste management. To align these practices with the accounting system in municipalities, an EMA model was proposed that can make available monetary and non-monetary waste-related environmental information.

Formation and presentation of information in the management accounting system in order to develop inter-organizational relations of agro-industrial complex organizations

The article provides a theoretical substantiation of the essence and content of inter-organizational relations in order to ensure inter-organizational cooperation of agricultural formations as an effective tool for maintaining the competitiveness of the domestic agricultural sector. The dynamic development of economic relations influenced the use of innovative technologies, caused the objective need for the introduction of new software solutions in the organization of the agro-industrial complex, including in relation to the system of economic security of inter-organizational cooperation. In order to promptly obtain the necessary data, form and present information in management accounting to optimize the inter-organizational relations of agribusiness organizations and make important management decisions, a mechanism is required that allows for the support of such decisions in a short time. Such a mechanism is an inter-organizational management accounting system in combination with a balanced scorecard, reporting, control system and other systems that ensure inter-organizational interaction. The purpose of the study is to substantiate the theoretical foundations of the formation and presentation of information in the framework of management accounting in order to develop inter-organizational relations of agricultural organizations.. Special attention is paid to the issues related to the elements of inter-organizational relations, the content of such relations.

УПРАВЛІНСЬКИЙ ОБЛІК ЯК СУЧАСНА ОБЛІКОВА ПАРАДИГМА БЮДЖЕТНИХ УСТАНОВ

The article examines the trends of transformation of the accounting system in public institutions in the direction of implementing management accounting as a source of data to ensure the processes of medium and long-term planning, assessing the effectiveness of budget programs and determining the degree of public policy goals. The peculiarities of financial and economic activities of budgetary institutions, which play an important role in the process of formation of accounting and analytical support and should be taken into account in the implementation of management accounting. The tasks to be solved within the framework of management accounting in budgetary institutions are formulated. The specifics of the impact on the process of preparation of accounting and analytical information produced by management accounting, the level of managers of budget funds within the unified system of management of public financial resources.The role of key performance indicators (KPIs) based on a balanced system of indicators in the implementation of management accounting in budgetary institutions as a means of providing accounting and analytical data of the process of risk-oriented management. The content and basic normative regulation of application of program-targeted budgeting in institutions of the budget sphere are analyzed. The expediency of introducing the method of budgeting on the basis of results in budgetary institutions due to its difference from the article-by-article method of budget formation is considered. The advantages of using the results-based budgeting method in Ukraine are shown. The necessity of further introduction of the results-based budgeting method in Ukraine as a measure to improve the public financial management system is substantiated. The list of issues that should be resolved in the process of implementation of budgeting technology in the institutions of the budget sphere on the basis of results in the application of the program-target method of management of public financial resources. The reasons for the unpreparedness of the domestic public finance management system to implement a results-oriented budgeting methodology, as well as the prerequisites for overcoming such negative phenomena that may be the key to the introduction of such accounting and analytical technology.

ACCOUNTING SUPPORT FOR MANAGEMENT OF COSTS FOR PRODUCTION AND SALE OF GARDENING PRODUCTS

The current state and development trends of the horticultural industry, highlights the problematic aspects in the activities of enterprises in the current economic conditions, outlines the prospects for their development, the costs of the production of fruit and berry products and the profitability of enterprises in the horticultural industry were analyzed in the article. It has been established that our country has a significant climatic and economic potential for obtaining high yields of products of the horticultural industry, however, due to the existence of systemic economic imbalances and gaps in sectoral policy, there is a decrease in the production of fruit and berry products, the lack of satisfaction of the needs of the domestic market for high-quality products of its own production and increase in imports of fruits and berries. It is substantiated that in order to solve the problems that have developed in the industry, it is necessary to take a number of organizational, economic, technical and technological solutions aimed at the effective use of available resources, the introduction of resource-saving technologies, the rational use of the bioclimatic and economic potential of the country. On the basis of a study of the sectoral features of the activity of horticultural enterprises, it was found that business entities bear significant costs for storing finished products in fruit storages in connection with the expectation of a favorable conjuncture of the agricultural products market. Due that the costs of storage and transportation of finished products are accounted for as part of sales costs, together with other expenses of the period are subject to write-off at the end of the period to determine financial results, difficulties arise with the accurate calculation of selling prices for finished products, which can negatively affect the levels profitability of enterprises. In order to mitigate this risk, it is proposed, within the framework of management accounting, to distribute sales costs and other expenses of the period among certain types of finished products in proportion to their production cost, which creates the preconditions for accurate calculation of selling prices for fruit and berry products, balanced implementation of pricing policy by business entities and effective management of the marketing costs of enterprises.

The Development of a Management Accounting Framework for Small and Medium Enterprises Operating in Emerging Economies

Purpose: This paper proposes a management accounting framework for Small and Medium Enterprises (SMEs) operating in developing countries. The development of the framework was motivated by the existing low uptake of management accounting and inconsistent use of Management Accounting Practices (MAPs) by SMEs, especially in emerging economies. The model framework advanced in this paper is meant to regularise and systematise the use of MAPs by SMEs. Methodology: The study adopted a qualitative research approach using semi-structured interviews. A total of thirteen focus group meetings, nineteen face-to-face in-depth interviews and twenty-one key informant interviews were conducted in five provinces in Zimbabwe. Data was analysed following a reflexive thematic analysis through content analysis using Atlas. ti. Findings: The paper proposed a six staged systematic implementation method that makes the application of MAPs less cumbersome and easy to implement. The framework can be applied to other similar contexts in the Global South. It is highly recommended that SMEs should apply management accounting as it use promotes competitive advantage and success for an entity. Originality/Value: The framework is envisaged to increase the usage of management accounting among SMEs as well as reducing inconsistencies in the application of MAPs among SMEs.

ИНСТРУМЕНТЫ УПРАВЛЕНЧЕСКОГО УЧЕТА: ИНФОРМАЦИОННЫЕ ПАНЕЛИ УПРАВЛЕНИЯ

The era of digital communication has led to an acceleration in the exchange of information, which resulted a series of changes in the activities of all organizations. The article discusses Dashboard (information management tool) within the framework of management accounting of costs. Dashboard reflects the real results of the organization's activities and deviations, and also initiates the adoption of managerial decisions and the implementation of corrective actions.

ФУНКЦІЇ УПРАВЛІНСЬКОГО ОБЛІКУ

One of the most important tasks of management accounting is to provide quality and efficient accounting information to users. The effectiveness of management accounting is manifested through the implementation of its functions, so it is relevant and urgent to consider them. The aim of the article is to study the composition, number and content of the functions of management accounting. The research methodology was based on general scientific methods of cognition like historical, logical, systemic methods, induction, deduction, analysis, as well as the methods of classification and grouping. According to the results of the research, it is found that currently there is no unified, generally accepted approach to the composition and number of the functions of management accounting (on average, there are distinguished five functions). Almost all researchers indicate information and control functions; analytical, predictive and communication functions are also present in most of the authors' papers analyzed. In some works, there are not quite appropriate combinations of two separate functions in one, and also there are similar titles of one and the same function of management accounting. There is a separation of rather narrow, specific functions, which are inherent only in certain management processes. We have summarized 32 different functions of management accounting, analyzed their number and composition, covered more than 50 authorial meanings for each of them. It has been found that researchers determine the different composition and essence of the functions depending on the direction of the study, its object and the specifics of the industry. It is quite logical that most of the various interpretations are given to the content of the information function of management accounting. According to the Conceptual Framework for Management Accounting developed by the International Federation of Accountants, the following functions have only one definition: analytical (evaluation), control and analytical, scientific and cognitive, new scientific and cognitive, motivation, organization, organizational and communication, planning and control, prognostic, reputational and the functions of management accounting. Prospects for further research are to consider the relationship between the functions of management accounting and management functions and to establish the quality and features of the manifestation of the functions of management accounting under the influence of industry characteristics of enterprises.

Reconstruction of Management Accounting Framework Based on Corporate Social Responsibility under Computer Aided Technology

The key point for an enterprise to reflect good social development and economic system is to have a complete management accounting framework. Compared with the traditional idea, we should reform and innovate. However, in the current capacity stage, there are still some misunderstandings and conceptual illusions about the concept of corporate responsibility. To improve the responsibility of an enterprise, the key lies in the reform and change of the system. This paper will focus on the exploration of social responsibility in the management accounting framework, use computer-aided technology to analyze and solve the basic decision of social responsibility values and framework restructuring construction.

Retraction: Reconstruction of Management Accounting Framework Based on Corporate Social Responsibility under Computer Aided Technology (J. Phys.: Conf. Ser. 1648 032029)

This article has been retracted by IOP Publishing following an allegation that raises concerns this article may have been created, manipulated, and/or sold by a commercial entity. In addition, IOP Publishing has seen no evidence that reliable peer review was conducted on this article, despite the clear standards expected of and communicated to conference organisers. The authors of the article have been given opportunity to present evidence that they were the original and genuine creators of the work, however at the time of publication of this notice, IOP Publishing has not received any response. IOP Publishing has analysed the article and agrees there are enough indicators to cause serious doubts over the legitimacy of the work and agree this article should be retracted. The authors are encouraged to contact IOP Publishing Limited if they have any comments on this retraction. Retraction published: 16 September 2022

STRATEGIC FLEXIBLE WORKING ARRANGEMENT: THE REALIGNMENT BETWEEN HUMAN RESOURCE AND MANAGEMENT ACCOUNTING

Purpose of the study: This paper aims to pioneer the investigation of human resource (HR) and management accounting (MA) realignment in delivering organizational working flexibility strategy. The core idea is to rebranding the HR and MA framework for strategic flexible working arrangements (FWA), so that FWA implementation or enhancement can be both effective and efficient.
 Methodology: This study is based on the epistemological of the social constructivist approach and qualitative in nature. We conducted semi-structured interviews and analyzed the collected data by using thematic analysis.
 Main Findings: The results revealed that HR and MA have overlapping responsibilities that add value to effective and efficient FWA implementation/enhancement. There is a definite prerequisite for HR and MA to sit together to manage employees' performance appraisal, compensation, and benefits. To ensure the efficiency of FWA, HR critically needs MA information such as budgeting, return on investment, variance analysis and, cost monitoring of FWA implementation/enhancement.
 Applications of this study: This study provides insight beyond FWA adoption, whereby we proposed a framework for strategic FWA, which bridges the connection between HR and MA so that FWA implementation or enhancement can be both effective and efficient. We thoroughly discussed how the synergy between HR and MA can be achieved through several key elements, which is expected to yield strategic outcomes for the organization. Most importantly, the organization shall be able to overcome the redundancies between HR and MA roles to create a more compelling strategic planning for FWA implementation. Hence, leading towards greater strategic outcomes such as strategic dynamic acquisition, effective HR cost, a strategic link between HR outcomes and business, strategic return on investment, as well as comprehensive HRM measurement and performance.
 Novelty/Originality of this study: The study developed a conceptual framework of HR and MA integration and strategic outcomes for FWA implementation. The features of this framework are of greater importance for FWA success and advance the notion of FWA literature by unveiling the strategic alignment between HR and MA.

A methodology for identifying and assessing financial risk in the company's management accounting system

Subject. This article deals with the issues of identification and risk assessment within the framework of management accounting, focused on information intelligence and support of business management in the face of uncertainty. Objectives. The article aims to comprehensively investigate the existing methodological approaches and modern ways of assessing risks. The study also aims to develop a qualitatively new methodology for assessing a company's total financial risk based on the identification and analysis of the risk components that the company is exposed to. Methods. For the study, we used the methods of analysis and synthesis, comparison, grouping, as well as statistical, calculation, analytical, and expert assessment methods. Results. The article presents an original method of stepwise assessing the company's financial risks, based on a combination of expert and computational tools, enabling to obtain representative data in the conditions of limited resources. Conclusions and Relevance. The proposed method of assessing financial risk helps conduct a qualitative and quantitative assessment of the financial risks of the organization and can be applied in organizations of all forms of business and sectors of the economy. It does not require significant amounts of information about the company's activities or special hard-and software.

The Impact of Customer Value Management on Potential Profits - A Proposed Management Accounting Framework

Purpose- The purpose of this study is to propose a customer value management framework to improve the potential profits using the Management accounting techniques.Design/methodology/approach- Based on the literature, this study identifies and adapts the most appropriate management accounting techniques to manage the customer value and hence improve potential profits. It also tests the perceptions of managers and management accountants of the Egyptian service sector concerning the relative merits of such a framework.Findings- The most significant finding is that the current study accepted the revised model because it provided better fit indices compared with the fit indices of the hypothesized model. A key finding in the current study that has not been investigated in previous studies is that the customer value analysis has a positive and significant impact on companies’ profitability. The study also found that there is an indirect relationship between customer profitability analysis and companies’ profitability. Other factors in the proposed framework have significant positive relationships.Originality/value- This paper contributes to management accounting literature by proposing a framework for managing customer value for the potential profits improvement purpose, using customer profitability analysis; customer value analysis; and value add-costing techniques together with the proposed sequences. It is also a practical contribution to improving the potential profits of the Egyptian service sector.

Globalization of Management Accounting Principles

The importance of effective management decision-making is obvious in the volatile and unstructured information environment, thus stimulating to revisions of theoretical grounds, concepts and principles of accounting management. The historic evolution of perceptions and visions of management accounting in Ukraine, like in other post-soviet countries, has a difficult path to the ultimate acceptance and recognition due to the efforts of many domestic scientists and practical professionals. 
 The conceptual framework of management accounting needs to be created with due consideration to the processes occurring in the internal and external environment of business entities as management objects. 
 The system approach to building up the conceptual framework of management accounting and reporting enables to achieve a radically new level today due to the implementation of Global Principles of Management Accounting, elaborated by international organizations. These principles set the criteria which observance enables for growth of company’s value in the conditions of the sustainable economic development. 
 Global Principles of Management Accounting, developed by the collaborative effort of two global professional organizations, the Chartered Institute of Management Accountants (СІМА) and the American Institute of Certified Public Accountants (ІАСРА), are designed to help business entities in overcoming fragmentation and to stimulate integrated thinking, which will enhance the effectiveness of decision making. The document outlines four principles focused on achieving four central goals and closely related with them: (i) communication generates information with impact (where “communication” is the principle and impact is the goal); (ii) information is relevant, i. e. important (“relevance” is the principle, and the goal is to assure the relevance of data); (iii) analysis of the impact on the value (“analysis” is the principle, and the goal is to analyze the business model of an organization); (iv) the intelligent management builds the trust (“trust” is the principle, and the goal is the commitment of management accounting professionals to the appropriate behavioral norms).
 It can be argued that considering the global principles of management accounting, scientific discussions on the conceptual framework of accounting management need to focus on the growth in the business value and sustainable development of business entities, to enable for the sustainable development of the economy. To this end, management accounting needs to be the core of an organization and ensure structured effective decisions in the conditions of uncertainty and growing turbulence. The global principles of management accounting have to lay the basis for not only management accounting in the real sector of the economy, but for competence building in the process of professional training on management accounting in higher education institutions.

Analysis on the Reconstruction of Management Accounting Framework from the Angle of Corporate Social Responsibility

Along with China's opening-up to the world and speedy social economic development, the economic strength will not serve as the only attribute of evaluating an enterprise. In this paper, by analyzing from the perspective of the management accounting framework under corporate social responsibility, the theoretical bases for enterprises to manage corporate image were discussed from two aspects: economic strength and social responsibility.

A Conceptual Framework for Learning Management Accounting

This paper demonstrates how Schoenfeld's (1985) conceptual framework for mathematics can provide an alternate framework for learning and thereby teaching management accounting. The four-part framework—heuristics, resources, beliefs, and controls—is a refinement to problem-based learning with three attributes in regard to management accounting. First, all aspects for teaching management accounting are integrated into a single framework or theory. Consistency among all parts of management accounting clarifies student and instructor roles in the learning process. Second, the framework's problem-solving focus with linkages to explanatory materials or resources allows students to be rigorously informed about the functionality of management accounting heuristics. Third, transition or extension of relatively simple, standard problems to more complex nonstandard problems or cases is facilitated by introducing appropriate beliefs and controls. In effect, this approach enables management accounting, and particularly case analysis, to be taught with more structure. Un cadre conceptuel pour l'apprentissage de la comptabilite de gestionResume Les auteurs montrent comment le cadre conceptuel de Schoenfeld (1985) propre aux mathematiques peut egalement s'appliquer a l'apprentissage, et donc a l'enseignement, de la comptabilite de gestion. Ce cadre conceptuel a quatre volets — heuristique, ressources, croyances et controles — est une version raffinee du modele d'apprentissage fonde sur la resolution de problemes comportant trois attributs relatifs a la comptabilite de gestion. Premierement, tous les aspects de l'enseignement de la comptabilite de gestion se trouvent integres dans un meme cadre ou dans une meme theorie. La cohesion de tous les elements de la comptabilite de gestion permet de clarifier les roles de l'etudiant et de l'enseignant dans le processus d'apprentissage. Deuxiemement, le fait que le cadre conceptuel soit axe sur la resolution de problemes et renvoie a des ressources ou des documents explicatifs permet de renseigner rigoureusement les etudiants sur la fonctionnalite de l'heuristique de la comptabilite de gestion. Troisiemement, la transition ou l'extension qu'exige le passage de problemes courants relativement simples a des problemes ou cas plus complexes et inusites est facilitee par l'introduction de croyances et de controles appropries. Dans les faits, cette methode permet un enseignement mieux structure de la comptabilite de gestion et de l'analyse de cas en particulier.

Management accounting and control practices in a lean manufacturing environment

A lean strategy is rapidly becoming the dominant paradigm in manufacturing. Kennedy and Widener (2008) use a case study to develop a theoretical framework of management accounting and control practices for firms following a lean manufacturing strategy. We build on Kennedy and Widener (2008) by examining a structural equation model that provides evidence on the extent to which a lean manufacturing implementation is related to five management accounting and control practices. Using survey data from 244 US companies with an interest in lean manufacturing, we find a direct positive relation between the extent of a lean manufacturing implementation and a simplified strategic reporting system, value stream costing, visual performance measurement information, and employee empowerment. We find a direct negative relation with inventory tracking; however, we find it is conditional on the extent of top management support for change in production strategies such that firms decrease reliance on inventory tracking in the presence of strong management support. We also conclude that the management accounting and control practices work together as a package in a lean manufacturing environment as evidenced by the many direct associations among the five management accounting and control practices.