Management Accounting Perspective Research Articles

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.

How Can Management Accounting Contribute to Risk Management Strategies Within Organization Case Study of Small and Medium Enterprises: Evidence from Emerging Countries

Purpose: Current study aimed at exploring the impact of management accounting in supporting risks management strategies within Small and Medium Enterprises in Jordan and GCC countries during the fiscal year 2021-2022. Theoretical framework: Competency of management accounting was chosen as the independent variable which included (Strategic Management, Professional Ethics and Values, Reporting and Control, Leadership, Technology and Analytics, Business Acumen and Operations), while the variable of risk management strategies was chosen to be the dependent variable. Design/methodology/approach: Through quantitative approach and distributing a questionnaire on (257) financial and accounting managers within Small and Medium Enterprises in Jordan and GCC countries. Findings: Based on screening the data through SPSS; results of study was able to identify and accept the main hypothesis which argued that "Management accounting competency has a statistically positive influence on risk management strategies within Small and Medium Enterprises in Jordan and GCC countries " with R= 0.877 and a variance of influence that reached 76.9%. As for sub-variables, it was seen through statistical processing that business acumen and operations and leadership were the most influential variables on risk management strategies with a high variance that indicated a statistical influence of 72% and 42.3% respectively. Research, Practical & Social implications: Study recommended developing and increasing awareness of the importance of management accounting in organizational risk management by promoting the comprehensive and integrated perspective and abandoning the individual perspective of management accounting in the organization; further recommendations were presented in the study. Originality/Value: These finding could be used as a reference for Small and Medium Enterprises in Jordan and GCC countries

Diagnosis of the Sustainability of a Poultry Value Chain From the Perspective of Environmental Management Accounting

Purpose: This paper aims to present the diagnosis of the sustainability of a poultry value chain from the perspective of Environmental Management Accounting. Theoretical framework: The main theoretical basis for the development of the research was the perspective of the Environmental Management Accounting (EMA) system that contributes to the generation of value. This chain will be studied under EMA and thus overcome the barrier for the implementation of an EMA system. When the organization succeeds in implementing it and making it an integral part of the environmental strategy, the EMA provides an efficient approach to environmental, managerial and financial information. Method/design/approach: The methodology used was the case study, the investigation, of an exploratory and quali-quantitative nature. Descriptive and quantitative information about environmental heritage was analysed, such as forest diagnosis, waste generation, water resources, energy and emissions, environmental management and accounting in the various links of the poultry production chain in the state of Goiás. Results and conclusion: The results demonstrate the vertical business strategy and the adoption of a circular business model by the poultry chain. It was possible to confirm that Environmental Management Accounting (EMA) makes it possible to map processes, identify physical and financial aspects, establish ecological control mechanisms, and highlight actions, policies and sustainability programs at the production chain level. It is concluded that to diagnose information of a descriptive and quantitative nature, from the EMA perspective, the level of planning of the integrating company and integrated farms must be considered, which directly impacts the monitoring and continuous evaluation of processes. When applied, the EMA contributes to the knowledge of the performance of the chain. Research implications: The contribution of this study is based on two pillars: i) the methodology applied with data collection from primary sources; and, ii) access to data, which allowed results, until then, not observed in the literature. Originality/value: The contribution of the study lies in the fact that it is a study applied to the production chain, with access to primary and unpublished data, which advances the development and applicability of science in the area and/or practices of socio-environmental management of organizations.

Application and Research of Enterprise Strategic Management Based on FAHP Model in Management Accounting

With the advent of the digital economy era, traditional management accounting is facing great challenges. More and more attention has been paid to the role of management accounting in corporate strategy, and it has gradually evolved into a new branch of accounting, also known as "strategic management accounting". Analysis and evaluation of relative levels and trends of price, business volume, market share and cash flow. In order to study the factors that affect management accounting in the evaluation of enterprise strategy, this paper firstly constructs the enterprise strategy index system from the perspective of management accounting, then invites experts to score each index, and finally uses FAHP (Fuzzy Analytic Hierarchy Process) to calculate the weight value of each index. Quantitative and qualitative evaluation of each index set can obtain the weights of the importance of different schemes, provide a basis for selecting the best scheme, give guidance for the formulation of the company's goals in the next stage, and also have great significance for the construction of a new management accounting system.

Research on Scientific Research Project Budget System from the Perspective of Management Accounting

Research on Scientific Research Project Budget System from the Perspective of Management Accounting

Entrepreneurial Orientation, Market Orientation, Managerial Accounting and Manufacturing SMEs Satisfaction

From a management accounting perspective, this study aims at examining the relations of entrepreneurial and market orientations and SMEs satisfaction in terms of financial and non-financial performance. SEM was conducted on 107 responses including management accountants from the manufacturing SMEs in Malaysia. The results reveal a null relationship between entrepreneurial orientation and financial-performance satisfaction, while it shows a positive impact on non-financial performance. In contrast, market orientation affects financial and non-financial performance positively. However, to understand the null impacts, interviews were conducted with owner-managers of manufacturing SMEs in Penang. Based on the interviews and the analysis, practical implications are provided to entrepreneurs of SMEs, the Malaysian government, and researchers.

Establishment of Performance Evaluation System for Marketing Companies - Based on the Perspective of Strategic Management Accounting

Establishing a performance evaluation system can assist a company in conducting a comprehensive examination of its previous performance and determining the direction of future development by comparing it to its long- and short-term objectives. Traditional performance evaluation approaches, on the other hand, exclusively consider the value of financial data and ignore the impact of non-financial metrics. As a result, this study uses the balanced scorecard approach to develop a performance evaluation system for marketing companies, as well as the analytic hierarchy process to determine the weights of various metrics. The proposed performance evaluation system can better assist marketing firms in evaluating their performance in reference to their strategic goals.

Audit Committee Impact on Corporate Profitability in Oman Companies: an Auditing and Management Accounting Perspective

This work investigates the impact of audit committees’ features as predictor variables of corporate profitability with a sample of firms belong to non-financial sector in Muscat Securities Market (MSM). This work analyzed cross sectional data for 60 non-financial firms. It used annual reports for the year of 2019 to analyze the impact of audit committees’ features on corporate profitability. The present work tested its hypotheses and utilized its variables via utilizing the Smart-PLS for data analysis. The findings revealed that a positive association between all the predictors and dependent variables are exist among the whole variables; audit committee, audit Independence, meeting of audit committee, and corporate profitability measured by management accounting’s indicators represented by ROA and ROE. This work is a new in its kind to be applied in Oman context via examining the relation between its predictors of audit committees’ features towards their impact on corporate profitability. The current study presents a theoretical and practical implications as a contribution relevant to practitioners working and academics in areas related to corporate profitability. In that, it furnishes empirical evidence for the policymakers, researchers and other interested parties.

MEMAHAMI “MAKNA LAIN” INSENTIF TERHADAP KINERJA BANK YANG HOLISTIK: PERSPEKTIF INTERDISIPLINER

Theoretically, financial incentives motivate the employee to improve performance but also found empirical evidence that shows the financial incentives are often inversely proportional (Young and Lewis 1995; Jenkins et al 1998). Base on the phenomena is interesting to look more at the meaning of incentives for Customer Relationship Manager (CRM) in the performance improvements. This study uses an interdisciplinary perspective of management accounting, psychology, and spirituality and borrows psychological needs and spiritual theories to see the motivation of CRM in improving performance based on their needs. The method used is a case study with an interpretive approach. Qualitative data is obtained by conducting interviews with several CRM in one of a commercial bank. The results of this study found there are other meanings of incentives for CRM. These meanings are inclined about security, loyalty, and accountability for their work, the meaning of appreciation, self-actualization, and spiritual which defeats the meaning of basic needs. The meanings that arise not depending on the period of work or position but more on the awareness of each. Understanding these meanings can be taken into consideration in making the right incentive scheme for employees. So that, incentives can really motivate employees to improve their performance.

Restricted Funding: Restricting Development?

This paper examines, from a management accounting perspective, the efficacy of the dominant ‘restricted’ funding structure in the international development NGO sector in terms of overall sector effectiveness, and whether it is the most appropriate means of funding NGOs. The objective is to encourage theoretical debate around the tensions highlighted between external accountability for funding and overall value-for-money delivered by individual development NGOs and the wider international development sector. From unique access to three internationally recognised major NGOs, our case studies reveal management accounting as broadly homogenous, with some nuanced distinctions both within and between the cases; but the scope of management accounting emerges as relatively limited. This is despite the NGOs utilising complex accounting software, employing qualified accounting staff, and having a large annual income. Using the broad principles of systems theory to frame our approach, this paper suggests that due to the ‘restricted’ nature of funding awarded to NGOs by institutional donors, accounting is dominated by external accountability reporting to the detriment of management accounting. These relatively novel data on management accounting practices at international development NGOs help illustrate how, potentially, NGOs are missing opportunities to utilise, or even improve, value-for-money in terms of how various program themes, geographic areas or time periods are delivering better or worse discernible impact for the money spent.

Nexus between business process management (BPM) and accounting

PurposeMultidisciplinary business process management (BPM) research can reap significant impact. We can particularly benefit from incorporating accounting concepts to address some of the key BPM challenges, such as value-creation and return on investment of BPM activities. However, research which addresses a relationship between BPM and accounting is scarce. The purpose of this paper is to provide a detailed synthesis of the current literature that has integrated accounting aspects with BPM. The authors profile and thematically describe existing research, and derive evidence-based directions to guide future research.Design/methodology/approachA multi-staged structured literature review approach to search for the two broad themes, accounting and BPM, supported by NVivo (to manage the papers and the coding and analysis processes) was designed and followed.FindingsThe paper confirms the dearth of work that ties the two disciplines, despite the synergetic multidisciplinary results that can be attained. Available literature is mostly from the management accounting perspective and relates to describing how performance management, in particular performance measurement, can be applicable to process improvement initiatives together with tools such as activity-based costing and the balanced scorecard. There is a lack of research that examines BPM in relation to any financial accounting perspectives (such as external reporting). Future research directions are proposed together with implications for practitioners with the findings of this structured literature review.Research limitations/implicationsThe paper provides a detailed synthesis of the existing literature on the nexus between accounting and BPM. It summarizes the implications for practitioners and provides directions for future research by identifying key gaps and opportunities with a sound contextual basis for extension and new work.Originality/valueEffective literature reviews create strong foundations for future research and accumulate the otherwise scattered knowledge into a single place. This is the first structured literature review that provides a detailed synthesis of the research that ties together the accounting and BPM disciplines, providing a basis for future research directions together with implications for practitioners.

Determinants of carbon management accounting adoption in Ghanaian firms

PurposeCarbon management accounting (CMA) is one part of sustainability accounting designed to provide information for the management of carbon dioxide (CO2) releases. Adopting the contingency framework, this paper aims to examine the contextual antecedents that influence CMA adoption in Ghanaian firms.Design/methodology/approachThe paper tests seven contextual dimensions, namely, strategy, structure, size, environmental management system (EMS), decentralization, technology and perceived environmental uncertainty, on CMA adoption from a survey of 125 accountants.FindingsConsistent with prior literature, organizational strategy, structure, environmental management accounting (EMA), firm size, technology and perceived environmental uncertainty were found to be positively associated with CMA adoption and hence support contingency theory. However, a relationship between decentralization and EMA adoption was not supported by the sample data. Also, the existence of CMA systems was found to be low in the sample firms, although more than half of the respondents have EMS.Research limitations/implicationsThe study is limited to Ghana hence possible generalization of the results is limited. Further exploration of contingency-based research in other emerging economies would provide valuable insights on CMA adoption and practices to contribute to the CMA literature.Practical implicationsThe findings suggest that although CMA adoption and practices is low in the sampled firms, both contextual and environmental factors play a vital role in the adoption of CMA in developing economies, as it pertains to the generic management accounting systems. Policies governing CMA practice should incorporate organizational contextual factors.Originality/valueThe paper presents preliminary empirical evidence on the state of adoption and practice of CMA from an emerging economy perspective, an area which lacks empirical investigation both in the EMA and the carbon accounting domain. It draws considerable novelty on the basis that despite the growing interest in climate change-based research empirical works on CO2 emissions conducted exclusively from management accounting perspective, and in developing economies in particular, have been scant. The paper extends the contingency theory framework from conventional practices to the EMA field.

Rethinking on the Definition of Carbon Accounting

Carbon accounting has become an international dilemma because the effects of climate change are so complicated and extensive. The definition of carbon accounting is the key problem among many unsolved problems in carbon accounting field. The paper finds that there are multiply definitions because of different understandings in carbon accounting at macro and micro levels. By analyzing the inner connection between macro and micro levels, the new definition for carbon accounting means a management activity to provide carbon emission financial information with monetary and material measurement unit and by means of accounting and verification methods. It constructs the basic framework including “carbon emission rights” accounting standard from the perspective of financial accounting and “carbon emission management accounting standard from the perspective of management accounting and conforms the basic framework of accounting standard for carbon emission.

Using Six Sigma Tools to Improve Strategic Cost Management: Management Accounting Perspective

The company's commitment to implement Six Sigma has been said to fail, as a quality management strategies, as expected to lead to continuous improvement. This study has its objective to identify the use of Six Sigma as a tool to improve cost management strategies in the production of LED (light emitting diode) on PT TMJ. It uses a case study approach to non-mainstream. The unit of analysis done on the application of six sigma strategies to evaluate quality management performance on the cleaning process of the LED light top-ring used in this study. The result of the evaluation measure phase, generally, informs that the company has increased sigma capability of the base performance so that the company's efforts to reduce the level of disability in circumference above the cleaning process should be defect-free LED light wrinkle, wave and widened in accordance with the target. All these can be said to be successful. The result also informed that at the stage of evaluating the attributes of data processing capability, informed that the company is in the process conditions. The fairly stable production, production process capability are quite capable to meet the specifications of the desired target customers.

Una perspectiva antropológica de las organizaciones desde la caracterización sociocultural, administración y contabilidad social. Caso institución de educación superior

<p>Este estudio se enfocó en<strong> </strong>identificar desde la antropología cultural las relaciones culturales e interculturales y socioeducativas que se establecen en las organizaciones y su incidencia en el clima laboral para el logro de los propósitos misionales, desde la perspectiva de la administración y la contabilidad social. Se estudió una institución de educación superior, perteneciente al sector de la economía solidaria; el alcance fue el conocimiento del tejido social de las organizaciones para mostrar cómo desde la comprensión de las relaciones y los significados que se establecen en la organización pueden llegar a mayor productividad. Los indicadores cualitativos permiten evaluar ventajas comparativas de la gestión del talento humano en función del conocimiento, los aprendizajes y el compromiso con los propósitos misionales u organizacionales. Los instrumentos para recolección de información fueron entrevistas semiestructuradas, grupos focales y observación participante. Las categorías emergentes son relaciones laborales, cultura e interculturalidad, aspectos socioeducativos y adaptación. </p>

Management Forecasts Ratcheting and its Effect on Management Forecast Errors: Management Accounting Perspective

Management Forecasts Ratcheting and its Effect on Management Forecast Errors: Management Accounting Perspective

The Impairment of Long-Lived Assets and Reversing Revaluation Review under US GAAP VS. IFRS Models in the United States

The impairment valuation of assets plays a central role in the accounting and operating decisions of the multinational companies. Although these techniques based on a similar theory, they may generate different results in application. This study incorporates an empirical approach to compare the outcomes of the two valuations: under US GAAP and IFRS (International Financial Reporting Standards). The aim of this study it to make the observation whether these valuation methods result in different values and to contribute to the understanding of why these two valuations, although similar in theory, may generate different results when applied to real life companies. In addition, this study will respond to readers this article, what kind of the management decision should make CEO before the first-time adoption IFRS in the U.S.A from management accounting perspective. This article will help the audience develop and internalize a model for making business judgments.

Energy System and Thermoeconomic Analysis of Combined Heat and Power High Temperature Proton Exchange Membrane Fuel Cell Systems for Light Commercial Buildings

The United States Department of Energy’s Pacific Northwest National Laboratory is teaming with industry to deploy and independently monitor 5-kilowatt-electric (kWe) combined heat and power (CHP) fuel cell systems (FCSs) in light commercial buildings. Results of an independent evaluation of manufacturer-stated engineering, economic, and environmental performance of these CHP FCSs are presented here. An important contribution of this paper is the precise definition and development of these essential terms for quantifying distributed CHP generator energy use within buildings: (1) electricity and heat utilization, (2) electrical and heat recovery efficiencies, (3) in-use electrical and heat recovery efficiencies, (4) percentage usage of electricity, and (5) percent usage of recoverable heat. Key additional parameters evaluated include the average cost of the CHP FCSs per unit of power and per unit of energy, the change in greenhouse gas (GHG) and air pollution emissions with a switch from conventional power plants and furnaces to CHP FCSs, the change in GHG mitigation costs from the switch, and the change in human health costs from air pollution. CHP FCS heat utilization is expected to be under 100% at several installation sites; for six sites, during periods of minimum heating demand, the in-use CHP FCS heat recovery (HR) efficiency based on the higher heating value of natural gas is expected to be only 24.4%. From the power perspective, the average per-unit cost (PUC) of electrical power is estimated to span $15–19,000/kWe (depending on site-specific installation, fuel, and other costs), while the average PUC of electrical and HR power is $7,000–9,000/kW. Regarding energy, the average PUC of electrical energy is $0.38–$0.46/kilowatt-hour-electric, while the average PUC of electrical and HR energy is $0.18–$0.23/kWh. GHG emissions were estimated to decrease by one-third after replacing a conventional system with a CHP FCS. GHG mitigation costs were also proportional to changes in GHG emissions. Estimated human health costs from air pollution emissions decreased by a factor of 1000 with changing to CHP FCS. Reported for the first time here is the derivation of the PUCs of power and energy for a CHP device from both standard and management accounting (MA) perspectives. Results show that the average PUC of combined electrical and HR power is equal to the average PUC of electric power applying an MA approach, and also equal to the average PUC of HR power applying an MA approach. Similar relations hold for the average PUC of energy. Results presented here demonstrate the value of using the equations herein for economic analyses of CHP systems to represent the average PUC of electrical power, HR power, or both, and for energy.

Cost consciousness: conceptual development from a management accounting perspective

Purpose– This paper aims to take note of the need to better understand cost consciousness from a management accounting perspective and serves as an exploratory study striving to analyze how the notion has been addressed by management accounting scholars.Design/methodology/approach– This paper presents the findings of a thorough literature review identifying the drivers, interpretations, definitions and results which management accounting scholars have associated with cost consciousness.Findings– This paper has synthesized the definitions and interpretations by considering their conceptual broadness and the subjects that cost consciousness characterizes. In addition, various potential drivers of cost consciousness have been identified where management control systems play a major role. Also, this paper summarizes both the positive and negative outcomes which scholars seem to expect from an increase of cost consciousness.Research limitations/implications– Given that no prior work has focused on the conceptual development of cost consciousness, it was necessary to infer most of the interpretations, drivers and results which management accounting scholars have associated to the cost consciousness notion.Originality/value– Cost consciousness is a concept that appears in hundreds of peer-reviewed articles on management accounting. However, only a handful of management accounting scholars have defined or evaluated this concept to a certain degree. As a result, what management accountants believe cost consciousness to be, how it is driven and what result may be expected from it, is nowhere to be found in any synthesized manner. The findings of this paper develop the concept of cost consciousness by illuminating the common use of the construct across various disciplines.

Reporting behavior: a literature review of experimental studies

The literature review focuses on reporting behavior under information (a)symmetry both from the perspective of behavioral management accounting and the behavioral economics. Experimental studies are classified, and the major findings are discussed. The experimental evidence shows that standard economics theories cannot explain the observed reporting behavior neither in experiments from the field of accounting nor those from the field of economics.