Management Accounting Methods Research Articles

Research on the Problems and Countermeasures of Using Management Accounting Methods to Promote the Reform of State-owned Enterprises

This paper deeply discusses how to use the power of management accounting to promote the deepening of the reform of state-owned enterprises, and proposes effective solutions to the existing problems. The reform of state-owned enterprises, as an indispensable part of China's economic map, is of great importance. Management accounting, as a mature and efficient management tool, is gradually becoming an indispensable supporting force in the reform of state-owned enterprises. This paper provides an in-depth analysis of the unique role of management accounting in the reform of state-owned enterprises. We find that by introducing management accounting concepts and methods, we can effectively optimize resource allocation, improve decision-making efficiency, and inject new vitality into the reform of state-owned enterprises. The research results of this paper are of great significance for guiding the reform practice of state-owned enterprises and improving the operating performance of state-owned enterprises. We believe that with the help of management accounting, the reform of state-owned enterprises will be able to take more solid steps and contribute more to the sustainable development of China's economy.

The Role of Environmental Management Accounting in Sustainability

This research explores the importance of environmental management accounting practices in businesses. It examines how market competition, environmental unpredictability, organizational size, and corporate governance influence the adoption of environmental management accounting tools and environmental performance. Data were collected from a survey of 397 individuals across various industries in Vietnam. The study found that greater environmental unpredictability, more intense market competition, larger organizational scale, and more effective corporate governance promote the use of environmental management accounting, leading to improved environmental performance. Additionally, environmental management accounting methods mediate the relationships among market competition, environmental uncertainty, organizational size, corporate governance, and environmental performance. This study contributes to the literature by highlighting the significance of environmental management accounting practices in Vietnam and offers practical insights for corporate leaders in developing countries. Overall, the findings suggest that businesses in competitive and unpredictable environments should prioritize the implementation of environmental management accounting practices to improve their environmental performance. This has practical implications for corporate leaders in developing countries like Vietnam, emphasizing the need for robust accounting practices to navigate environmental challenges.

Modeling and Analyzing of Financial Data within Digital Transformation Era and its Impact on Balanced Scorecards Utilizations: A Theoretical Review

The present theoretical review outlines the interaction between digital transformation and financial data modeling and the use of Balanced Scorecards in improving strategic management in organizations. Considering the context of rapid technological processes and the growing influence of international competition, the principle question of this work is how current management accounting methods, most of which are inspired by digitization, shift the theoretical perspective of how organizations use (BSCs) for strategic forecasting and performance assessment. By conducting a thorough review of the literature within the realms of management accounting, information systems, and strategic management, this theoretical review identifies the main trends, the rationale, and the challenges behind the use of (BSCs) and digitization. The current finding indicates that the implementation of digital technologies into the process of financial data modeling substantially increases the potential of (BSCs) by offering real-time, useful information for strategic decision-making. At the same time, the implementation process raises a set of challenges, such as security issues, hefty financial investments into technological infrastructures, and human factors of organizational change. Despite these hurdles, the potential benefits of digitally-enhanced (BSC) framework-such as improved decision-making accuracy, strategic agility, and operational efficiency-underscore the importance of adopting a holistic approach to digital transformation in strategic management practices. This review calls for a balanced perspective that considers both the technological and cultural dimensions of implementing digital innovations within (BSC) frameworks. It concludes with recommendations for future research, emphasizing the need for empirical studies to validate theoretical insights presented and explore the practical implications of digital transformation organizations-BSCs effectiveness in diverse organizational context.

Effectiveness Of Artificial Intelligence In Management Accounting

This academic review paper aims to investigate the possibility of integrating artificial intelligence into the daily workflow of management accounting, and to what extent this would increase the effectiveness and efficiency of the business operations. By focusing on aspects such as management accounting, artificial intelligence, the advantages and disadvantages of utilising artificial intelligence for management accounting, ethical considerations of utilising AI while handling sensitive financial information, and various real-world businesses which use AI in their day-to-day operations, this paper is able to clearly identify and explain the possibility of human accountants and artificial intelligence working together in order to maximise the accuracy and efficiency of outcome. This paper also provides an overview regarding some of the essential accounting tools equipped with AI that are currently being used by management accountants, and also discusses the possibility of AI replacing human management accountants completely. By covering all of these components and providing necessary explanations, this academic review paper aims to answer the research question “To what extent will AI be more effective than traditional methods of management accounting?”

Cost accounting as a management accounting tool for monitoring restaurant profitability

Research objective: This article discusses the concept of one of the management accounting methods of cost accounting and identifies the use of this method in the management of a catering business.
 Methodology: The analysis of cost accounting in the context of restaurant profitability management covers various aspects of cost accounting, such as cost classification, direct cost analysis, indirect costs, and methods to control raw material and labour costs.
 Main conclusions: This study focuses on the role of cost accounting as a key tool for restaurant management. A precise analysis of raw material costs, labour costs, and other factors affects the profitability and competitiveness of a catering business. By using cost accounting, restaurateurs can make more informed decisions, adapt to changing market conditions, and thus contribute to the long-term success of their business.
 Application of the study: The study illustrates how the effective use of restaurant cost accounting contributes to better management of a catering business, improving customer service, increasing profitability, and maintaining competitiveness in the market.
 Originality/Novelty of the study: The work combines theoretical and practical approaches to the subject of cost accounting with a particular focus on the catering industry. The study provides an in-depth analysis of restaurant cost accounting and provides practical tips for optimising costs and increasing the profitability of a catering business.

МЕТОДОЛОГІЧНІ ЗАСАДИ, МЕТОДИ ТА ІНСТРУМЕНТИ УПРАВЛІНСЬКОГО ОБЛІКУ

The article is devoted to the study of methodological foundations, methods and tools of management accounting and its practical implementation in the activities of enterprises in order to improve the information support of managers and managers of enterprise. It has been found that management accounting is a separate accounting system, which is a subsystem of the general enterprise management system and provides for the collection, processing of information received from various departments about the status and performance of the enterprise, which provides the ability to make managerial decisions and effectively manage costs, assets, profits of enterprise. The methodology and complex of methods used in the process of management accounting and ensuring the consistency, accuracy, and effectiveness of its implementation are studied. Three groups of methods of management accounting have been researched and generalized: general methodological methods, general scientific methods and specific methods. It has been found that general methodological methods are characteristic of the study of a wide range of objects, such methods include observation, comparison, analysis and synthesis. General scientific methods of management accounting are general methods that are used, including in accounting, these are: accounting accounts; double entry; Inventory; documentation forms; depreciation, calculation, and others. Specific methods of management accounting provide tools for solving specific management problems, these include methods that are different in terms of cost and include accounting by actual cost indicators (direct costing) and accounting by standard cost indicators (standard costing), as well as SWOT analysis, balanced scorecard, budgeting, benchmarking and other methods. It has been found that economic and mathematical methods of studying the cost of products and services have become widely used in the implementation of management accounting in order to identify the relationship between the cost items in the cost and the profitability of its production. It has been found that the organization of management accounting at the enterprise should be carried out in compliance with the following principles: consistency; analyticality of information; use of primary information; periodicity; consistency; integrity; economy; balance; responsibility; transparency.

МЕТОДИЧНІ ЗАСАДИ ОРГАНІЗАЦІЇ ОБЛІКОВОГО ТА КОНТРОЛЬНОГО ІНСТРУМЕНТАРІЮ В УПРАВЛІННІ ЛОГІСТИЧНИМИ ВИТРАТАМИ ПІДПРИЄМСТВА

The methods of accounting and management accounting of the logistics costs of the enterprise used in modern practice are critically evaluated from the point of view of the possibilities of providing, on their basis, the growing information needs in management processes. The limited effectiveness of the control function due to the insufficiency of the analytical section of the data generated within the accounting system is discussed. The research was conducted on the basis of the dialectical method of learning phenomena and processes and approaches to theoretical generalization. The methods of observation and comparison were used to discuss the completeness of accounting coverage of the composition of logistics costs, and scientific abstraction for the purpose of a generalized assessment of the compliance of the methodological principles of accounting and internal control parameters for the modern needs of managing this type of costs. It was established that the efficiency and objectivity of these management tools ensure the timely development of preventive measures at the enterprise to optimize logistics costs in terms of responsibility centers and structural units of the enterprise. The use of methodological principles implemented in practice for the organization of accounting and control tools in the management of logistics costs is considered in the study under the projection of productive use by structural units. information obtained on this basis. Separate aspects of improving the methodological principles of accounting and control in the logistics cost management system have been formulated. It is justified that the emphasis of the formation of operational information about logistics costs should be on the formation of a management accounting system that is adaptive to the specifics of the enterprise. It is argued that in this system it is necessary to deepen the grouping of logistics costs of modern enterprises by centers of responsibility and phases of logistics activity. It was determined that from the point of view of the trends of providing public information about the activities of enterprises (for example, various types of management reports), it becomes necessary to expand the methodology of accounting for logistics costs on balance accounts based on the regulatory introduction of additional sub-accounts to the chart of accounts.

Инновационные методы управленческого учета для обеспечения устойчивости сельскохозяйственных и перерабатывающих предприятий

The article identifies innovative management accounting methods that can be integrated into the strategies of agricultural enterprises in order to ensure their sustainable development. To identify traditional and innovative methods of management accounting, an analysis of foreign literature on management accounting was conducted. The definition of innovative management accounting methods in agricultural organizations that focus on the strategic development of the organization, as opposed to traditional methods that focus on past data, is formulated. During the analysis, six innovative management accounting methods were identified: budgeting based on activities; product life cycle cost; general quality management; target costs; kaizen calculation and cost analysis, which can be used to increase the sustainability of agricultural organizations. The principles of innovative management accounting methods for their implementation in the strategies of agricultural organizations are defined.

Innovative management accounting methods: knowledge and use in the best companies

Innovative management accounting methods: knowledge and use in the best companies

Sustainable performance management in the EU SME sector. A review and analysis of concepts and methods of strategic management accounting

Purpose: The paper’s main objective is to structure the knowledge of the existing regulatory frameworks, projects and actions that support sustainable performance management (SPM) in small and medium-sized enterprises (SMEs) against the backdrop of the growing significance of the circular economy. The paper will also evidence how strategic management accounting (SMA) assists this process, what individual metrics, dashboards or scorecard concepts have been proposed and how their use may be assessed. Methodology/approach: The research methods include (1) a descriptive systematic analysis of the policies established by the policymakers and regulators in the EU, (2) a comparative analysis of various organisations’ initiatives, actions, delivered toolkits and their outputs, and (3) a literature review of the essential works and research studies on sustainable business models (SBMs), circular business models (CBMs) and SPM in the context of SMEs. Findings: The policies established in the EU support SPM by encouraging SMEs to be involved in sustainable business practices and indicating how to embark on a green transition. Recently, multiple initiatives have been aimed at indicating the opportunities the closed-loop economy system offers SMEs. Many toolkits have also been developed to help SMEs measure their sustainable performance. Although this measurement is vital for SMEs, the business practice falls behind the regulatory framework. Therefore, internal initiatives from the SME sector are needed to popularise the sustainability concept. Research limitations/implications: SMEs show lower levels of compliance with environmental requirements and are unaware of how their activities affect the environment. A limitation of the research is that, in many cases, SMEs are not ready to respond properly to the ESG requirements imposed by regulators. The reason may be a lack of knowledge, experience and limited funds. Therefore, future research should focus on recognizing the gaps in this area and identifying what may be impeding the development of sustainability performance management in SMEs. Originality/value: The work presents the evolution path from the traditional business models (TBMs) through the SBMs to innovative CBMs and addresses their distinctive features. It contributes to the existing knowledge about SMA in SMEs by analysing its links with SPM.

A Comprehensive Literature Analysis on the Modern Perspective of Management Accounting, Focusing on its Origins and Evolutionary Trajectory

This paper conducts a comprehensive analysis of the literature to provide a thorough understanding of the origins and development of management accounting, which has experienced increased popularity, particularly in the past twenty years. This paper undertakes a critical examination of the extensive criticism around the perceived decline in the relevance of management accounting in effectively improving performance within the context of a contemporary, dynamic company environment. This paper aims to enhance understanding of the simultaneous utilization of both classic and contemporary management accounting procedures. The study conducted a comprehensive analysis of the prevailing degree of interest in the adoption of management accounting methods in both developed and emerging nations. The examination of relevant literature has yielded a critical analysis that indicates the origins of management accounting may be traced back to the industrial revolution that occurred in the 1900s. The study also indicated that management accounting is subject to ongoing development as organizations encounter novel challenges requiring resolution. Furthermore, it was found that management accounting approaches employed in the early 1900s remain relevant and useful in contemporary contexts. The school of thinking that argues for the diminished significance of management accounting has been refuted on the basis that classic management accounting practices employed in the 1900s continue to hold relevance in contemporary times. The study proposes the use of management accounting practices as they enhance the organization's competitive advantage and generate value.

Management accounting methods for financial decisions: Case of industrial companies in Jordan

Management accounting plays a critical role in decision making since it supplies accounting information that would be helpful to managers in making critical decisions for an organization. In light of this assertion, the aim of the study was to determine how the listed Jordanian industrial organizations used management accounting techniques to make financial decisions. The study employed the descriptive research design and used primary data to collect the information on the related objectives of the study. The target population for this study was the employees of industrial enterprises in Jordan. Specifically, the employees forming the part of the sample were the managers and non-managers (excluding lower-level staff) working in industrial companies of Jordan. The industrial firms from where the employees were chosen included the industrial firms listed on the Amman Stock Exchange. The sample size for the study has been 371 employees, selected based on the Krejcie and Morgan rule. The study’s findings supported the notion that budgeting, financial ratio analysis and activity-based costing are the most widely used management accounting techniques in these organizations. The results show that employees differ in their perception on the role of management accounting techniques in financial decision making. Specifically, the results of the study confirm the significant p-value (0.000) for t-statistics and f-value, thereby confirming that employees differ in their perception regarding the role of management accounting in financial decision making based on gender, type of job and years of experience.

Research on the Application of Management Accounting in Logistics Enterprises in the Internet+ Era

This paper aims to study the application of management accounting in logistics enterprises in the era of Internet+. With the development of Internet+, logistics enterprises are facing increasingly fierce competition and management challenges. As an important management tool, management accounting provides important support and guidance for decision-making in logistics enterprises in this context. This study explores the application of management accounting in logistics enterprises and analyzes its roles in cost management, performance evaluation, budget management, fund management, and decision support. At the same time, this paper also discusses the innovative application of management accounting in the era of Internet+, such as the introduction of big data analysis and artificial intelligence technology. By properly applying management accounting tools and methods, logistics enterprises can improve operational efficiency, reduce costs, and further optimize management processes through innovative technological applications. This paper provides theoretical and practical references for the implementation of management accounting in logistics enterprises in the era of Internet+.

The Cost - Based Pricing: Research in Pharmaceutical Enterprise in Hanoi

The authors investigated and evaluated the factors affecting cost-based pricing in pharmaceutical enterprises in Hanoi. Data were surveyed and collected from 77 pharmaceutical enterprises in Hanoi in 2023 and analyzed using statistical tools. Pharmaceutical enterprises in Hanoi include large-sized enterprises and small and medium-sized enterprises. Survey subjects are mainly business administrators and accountants. The survey results show that there are three factors affecting the cost-based pricing method in pharmaceutical enterprises in Hanoi: (1) the degree of influence in price determination sales; (2) cost information; and (3) market share. Based on the obtained results, the authors present new proposals for applying cost management accounting methods to product pricing in pharmaceutical enterprises in Hanoi. Research also shows that businesses should invest in a cost management accounting system to provide information useful to managers in making product pricing decisions, especially when cost information is an important factor that has the strongest influence on the method of product pricing in pharmaceutical enterprises in Hanoi.

Impact of advanced management accounting methods on the quality of financial reporting: the case of the Jordanian banking system

This study aims to investigate the degree of application of advanced management accounting methods within Jordanian banks. The researcher tries also to assess the effect of the degree of application of advanced management accounting methods on the quality of financial reports issued by Jordanian banks. In order to achieve this objective data was collected through the distribution of 45 questionnaires to the financial managers and chief accountants of ten commercial banks operating in Jordan. Only 40 questionnaires have been subjected to the process of statistical analysis in order to construct the model of the study, In addition to the use of descriptive statistical techniques of analysis of variance. The results showed that the level of use of the targeted management accounting methods represented in activity based costing, target costing, total quality management respectively within the subjected banks was acceptable. The study also found that there was a significant relationship between the degree of application of our targeted management accounting methods and the quality of financial reports issued by Jordanian banks. Therefore, the paper recommended that management of the subjected banks should improve their usage of advanced management accounting methods which is presently fair but not sufficient and involve accountants and financial managers in the decision making process.

An analysis of the effects of management accounting services on the financial performance of SME: The moderating role of information technology

Management accounting is very important in the field of accounting. It is a subject which implementation can bring about firm development. There are a lot of studies about management accounting. Past research have analysed various aspects of management accounting. However, the effect of management accounting services on the financial performance of SMEs have not been deeply researched into. This study aims to fill this gap by analysing the effect of management accounting service on the financial performance of SMEs in Ghana’s commerce, service, and manufacturing industries. The study’s population comprises registered SMEs from the Registrar General’s Department. The sample size was calculated using a population of 4,000 registered small and medium businesses to arrive at 365 SMfomular. Managers of SMEs were chosen and contacted using a systematic sample process and given questionnaires to complete. This study used the agency theory and Technology Acceptance Model (TAM). The PLSSEM Software was used to analyze the data collected from the respondents. The study found a relationship between SMEs’ performance and management accounting methods.

Analysis of the Integration of Financial Accounting and Management Accounting under RPA Technology

As companies grow in size with the economy, management needs high-quality financial information to make decisions. Therefore, combining financial accounting and management accounting can improve the quality of financial information. The emergence of new technologies has made accounting more intelligent, among which RPA applied in accounting can intelligently handle business processes, financial processes, and diverse data, providing technical support for the integration of financial and management accounting. The article focuses on the application of RPA technology in financial accounting and management accounting and discusses the integration methods of financial accounting and management accounting.

ФОРМУВАННЯ СИСТЕМИ УПРАВЛІНСЬКОГО ОБЛІКУ ІНВЕСТИЦІЙНОЇ ДІЯЛЬНОСТІ ПІДПРИЄМСТВА

The article highlights the fundamental reasons for the formation of the management accounting system in the investment activity of the enterprise, which are the uncertainty of the external organizational environment, the emergence of communication barriers between the participants of the investment process, resource limitations in the provision of investment activities and the terms of the life cycle of the investment project. The features of the information provided to support the management accounting system have been clarified and supplemented. The content of the system of management accounting of investment activity is substantiated and supplemented in view of the interaction and interrelationship of the elements of this system, which occurs through the process of collection and transformation of accounting and analytical information in order to perform the functions of enterprise management. The peculiarities of the formation of the system of management accounting of investment activities are determined in view of the objects of investment, which are real and financial investments. It was determined that for the accounting and control of real investment objects, an investment center is created as a separate unit, which ensures the efficiency of the use of capital investments, the normative indicator of which is their estimated cost. It was found that the resource provision of real investment objects is carried out within the framework of a project or a portfolio of projects. It is proposed to single out the investment project as an independent center of responsibility, which is related to its specific features: uniqueness, temporality, one-time use, limited time and resources. The peculiarities of the formation of the management accounting system of investment projects through the implementation of the following stages are determined: 1) construction of the center of responsibility for the investment project; 2) development of the content of management reporting; 3) development of management accounting classifiers; 4) selection of methods of management accounting of investment costs in accordance with the project budget; 5) development of regulations for management accounting of investments aimed at project implementation.

External pressures and financial performance of Indonesian MSMEs: role of material flow cost accounting

This study aims to investigate the mediating effect of material flow cost accounting (MFCA) on the external pressure (regulatory pressure and market pressure) - financial performance relationship. The topic of MFCA is rarely researched. The data was collected using questionnaires directed to the owners/managers of micro, small and medium-sized enterprises (MSMEs) in the East Java Province, Indonesia. As many as 156 respondents participated in this research. The finding reveals that MFCA partially mediates the external pressure-financial performance relationship proving that MFCA as one of the environmental management accounting methods is beneficial and needed to enhance financial performance. Employing institutional theory, this study provides additional support to the scarcity of empirical evidence focusing on MFCA in the MSME research setting.

MANAGEMENT ACCOUNTING AS AN INFORMATION COMPONENT OF THE DIAGNOSTICS OF THE FINANCIAL SECURITY OF ENTERPRISES

Introduction. New business conditions, characteristic of fundamental changes in the industrial paradigm, the introduction of the digital economy in the socio-economic processes of the "knowledge" information society, the establishment of a new model of world perception and post-war recovery in the conditions of BANI World require a radical change of priorities in the management of financial and economic activities of enterprises in the plane ensuring their safety. The requirements of timeliness and flexibility of management in practical "digital" activities require timeliness of decision-making regarding the functioning of business structures and immediate response to risks and threats in the competitive space. This is provided by the management accounting system, the methodology of which must be constantly reviewed and adapted for implementation in various types of enterprises and organizational and legal formations. The goal is to investigate the main theoretical and methodological approaches to management accounting as an informational component of the financial security of the enterprise. The purpose of the article is the scientific substantiation of the main theoretical and methodological approaches to management accounting as an information component of the financial security of the enterprise. Methods. The study of the outlined problems was achieved with the help of general scientific, special and empirical methods of learning processes and phenomena. Methods of analysis and synthesis, comparison, generalization, applied to the study of management accounting in the context of financial security of the enterprise; scientific abstraction, structural-logical and tabular methods - for the systematization of management accounting technologies in ensuring the financial security of enterprises. Results. The theoretical foundations of management accounting as an information base for managing the financial security of enterprises are summarized. The methodical approaches of management accounting, which allow diagnosing the state of financial and economic activity and making timely management decisions to achieve financial security of enterprises, are highlighted. Conclusions. The informational component of financial security management is management accounting, which produces data of an operational, tactical and strategic nature. The use of analytical methods will expand the volume of information resources about the level of financial security with the necessary level of its detail and frequency of presentation. The use of management accounting methods and technologies makes it possible to generate reliable information for making informed, timely management decisions that can take into account changes in the internal environment and threats and risks of the external environment. The use of analytical methods will expand the volume of information resources about the level of financial security with the necessary level of its detail and frequency of presentation.