Role Of Management Accounting Research Articles

Performance management system components and the role of the management accountant

Purpose While extant research does mention performance management systems as antecedent to a management accountant’s role, and that there is tension between both, there is little detailed research. Thus, this paper aims to investigate the extent to which a performance management system interacts with the role of a management accountant. Design/methodology/approach The study is a cross-sectional field study, using interviews with paired management accountants and operative managers in 16 multinational organisations in Germany. The perspectives of both management accountants and operative managers are analysed separately. The role episode model theoretically informs the study. Findings The findings reveal management accountants distinguish between three roles of scorekeeping, controlling and business support, similar to prior literature. By contrast, operating managers are concerned with the value-adding and non-value-adding character of activities and thus support a dichotomy of management accountants’ roles. Drawing upon the role episode model, this study elucidates the interplay between performance management systems and the roles of management accountants, which encompass both role-taking and role-making dynamics. Additionally, this study contributes to management control literature by operationalising the components of a performance management system framework and linking them to the role of management accountants, as proposed by role antecedents in previous literature. The study also uncovers factors influencing role-taking and role-making, alongside examining the repercussions of role consensus or conflict based on the interaction with the operating manager. Research limitations/implications This paper is subject to the normal limitations of case study research and generalisation. The findings may also be influenced by the cultural context of the study. Originality/value An updated role episode model is presented, highlighting further performance management systems’ components. The study also reveals factors enabling and/or inhibiting the management accountants’ business support role and the impact of role consensus/conflict.

Роль управленческого учета в процессе управления рисками в организации

В статье рассматривается важность управленческого учета в предотвращении и управлении рисками, а также методы его использования для улучшения финансовой устойчивости и конкурентоспособности организации. Управленческий учет играет ключевую роль в процессе управления рисками в организации. Он помогает определить потенциальные угрозы и возможности, разработать стратегии по их минимизации или использованию в свою пользу, а также оценить эффективность принимаемых решений. Management accounting plays a key role in the risk management process in an organization. It helps to identify potential threats and opportunities, develop strategies to minimize them or use them to your advantage, as well as evaluate the effectiveness of decisions made. The article discusses the importance of management accounting in risk prevention and management, as well as methods of its use to improve the financial stability and competitiveness of an organization.

The role of management accounting in human capital management: Lessons from the services sector

Purpose: The article examines the role of management accounting in managing human capital, a key intangible asset for services sectors. Considering new expectations regarding the role of management accountants and human resource professionals, the article explores the ability of the disciplines to collaborate in becoming more strategic.Design/methodology/approach: The article considers literature on the evolution of the two disciplines, including archetype views on the role of management accountants, and presents case study analysis of a German information technology firm and a Dutch bank. Semi-structured interviews were conducted with senior managers from both the companies.Findings/results: From the interviews, it appeared that management accountants play the role of business partner but stop short of acting as comprehensive integrator of human capital information. While both companies have innovated in measuring and valuing human capital, human resources and finance analytics teams tend to work on their own and accountants remain ad hoc advisors.Practical implications: Efforts to refine the business case and value human capital fail to fully mainstream, as collaboration across departments remain loose. Innovations in soft management controls leave an impression of loose coupling between subsystems rather than comprehensively planned and integrated soft management control systems.Originality/value: The study defines complementarity between two disciplines, both seeking to account for and manage intangible assets more effectively. It concludes with lessons for researchers and practitioners on the development action-to-value pathways, improving non-financial metrics and purposefully shaping soft control systems.

Discourse analysis on sustaining the maieutic role “when management accounting goes digital”

PurposeThis paper aims to explore how the maieutic role of management accounting (MA) can be sustained in the context of MA digitalization.Design/methodology/approachThe paper begins with practitioners’ descriptions of the context that makes the MA support of non-routine decisions maieutic. To understand how the maieutic characteristics can be sustained in future MA digitalization, the authors then analyze the discourses these practitioners have about artificial intelligence (AI) in providing MA support.FindingsAs a basis, the authors’ data show various maieutic characteristics within the use of MA answers in decision-making as well as within the MA process of generating such answers. The paper then identifies three MA digitalization discourses, namely, “computation,” “judgment” and human-AI “interaction” discourse, each with their unique agendas on how AI should be used.Originality/valueThe paper is based on the premises that AI and digitalization are often discussed without sufficient understanding about the context being digitalized. The authors’ data suggest that MA support in non-routine decision-making is fundamentally maieutic, and AI – as it currently stands – is not expected to change this by providing perfect answers. The authors provide novel insights about maieutic MA support and the current discourses on using AI in MA support, and how digitalization does not necessarily compromise maieutic MA support but instead has the potential to sustain or even enhance it.

The role of management accountant in developing incentive programs in auto-machine shops in San Jose, Occidental Mindoro

The role of management accountant in developing incentive programs in auto-machine shops in San Jose, Occidental Mindoro

The role of management accounting on the relationship between corporate social responsibility and performance in SMEs

PurposeThis study aims to explore corporate social responsibility (CSR) implementation in small and medium-sized enterprises (SMEs) and examines the role of management accounting practices (MAPs) in the relationship between CSR and performance in SMEs.Design/methodology/approachA questionnaire survey was conducted among 1,000 SMEs in the southern region of Malaysia, and 203 valid replies were received.FindingsThe results indicate that most SMEs are informed about their social responsibilities across several CSR dimensions. There is evidence that supports the significant direct relationship between CSR and firm performance, and MAPs significantly and indirectly contribute to the effect of CSR on firm performance.Originality/valueThe findings contribute to an understanding of how the integration of CSR and MAPs can amplify the effect of CSR implementation on performance in SMEs. The finding may be useful for the relevant policymakers to increase socially responsible activities among SMEs to spur further growth for SMEs and society. SMEs may acknowledge MAPs as a significant intermediary in making CSR activities financially and operationally feasible.

The usefulness of management accounting tools in reducing waste

Purpose: The aim of the article is to present the usefulness of the tools available in management accounting in the area of cost accounting by monitoring the resource management process, including waste management by the idea of sustainable development. The authors present the importance of the concept of a circular economy in waste management, indicating its positive impact on the environment and the company's financial results.  Methodology: an analysis and criticism of literature.  Hypotheses:  H1. The implementation of the circular economy concept should be supported using management accounting tools.  H2. Cost accounting (target costing, Product Life Cycle Costing, and Activity-Based Costing) helps isolate environmental costs.  Value: The indication of the potential benefits of effective waste management and the role of management accounting (in the form of cost accounting) in this process.

Management Accounting of Payment Risks of Online Trade during Military Operations

The rapid development of technologies and intensifying military operations have caused several challenges for online trade, in particular, in terms of payment risks. In this context, management accounting as a key means of monitoring and controlling these risks is assigned a special role. The aim of the article is to identify the key peculiarities of the influence of management accounting on the payment risks of online trade in the area of fraudulent operations during active military operations. The study employed a number of economic and statistical method: an in-depth semi-structured interview using the author’s questionnaire, as well as an economic analysis of losses from fraud according to the methodical approaches of auditing KPMG and Crowe. The practice of identifying fast recurring transactions (78% of respondents) when working with payment risks was distinguished as a result of the research by interviewing respondents from a sample of management accounting specialists. The importance of estimating losses from fraudulent transactions (78% of respondents) in the management accounting system of payment risks is emphasized. Analysis of the results of interviewing respondents showed a positive effect of the systematic application of management accounting tools on reducing the risks of fraud in online trade. Thanks to adequate management accounting, the fraud losses is reduced by an average of 12% compared to the 2022 average industry loss rate. The obtained results revealed the key role of management accounting in overcoming the negative consequences of payment risks, namely in reducing losses from fraudulent transactions. These results can be applied to improve the financial and operational management of online trade in wartime and other crisis situations. Prospects for further research are in-depth analysis of artificial intelligence tools and machine learning in identifying payment risks of online trade.
  

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.

Predictive Analytics and the Enhanced Strategic Role of Management Accountants

Predictive Analytics and the Enhanced Strategic Role of Management Accountants

The relationship between the role of management accountants, advanced manufacturing technologies, cost system sophistication and performance: a path model

Purpose This paper aims to test a contingency-based path model that concurrently links the role of management accountants (MA) and advanced manufacturing technologies (AMTs) to cost system sophistication (CSS), as well as linking the latter to improvements in organisational performance through improving cost management and product planning decisions. Design/methodology/approach This paper used the questionnaire survey strategy to collect data from 373 medium and large manufacturing business units based in the UK, then subjected the data to structural equation modelling analysis to test a contingency-based path model. Findings The results show that the role of MAs and AMTs positively influence CSS. Moreover, it was found that the latter is positively associated with improvements in cost management decisions which, in turn, lead to improvements in organisational performance. However, no support was found for the association between the level of CSS and improvements in product planning decisions, although the latter was found to be positively associated with organisational performance. These results confirm the theory and empirical findings regarding the role that MAs and AMTs play in designing the cost accounting system, and support the argument that adopting sophisticated cost systems does not lead directly to improvements in organisational performance, unless the benefits of such systems, in terms of improved decision-making and cost applications, are used. Originality/value This research contributes to the literature by testing a contingency-based path model that incorporates hitherto underexamined contextual factors, namely, the role of MAs and AMTs; examining the effect of CSS on a critical output, organisational performance and the mechanisms of this effect; and considering the complexity of the business environments through the concurrent testing of the relationships involved in the research model.

Study on The Role of Management Accounting in The Implementation of A Two-Cycle Strategy

This paper will give full play to the role of management accounting innovation in the internal circulation of investment, services, finance and science and technology under the double-cycle development pattern, so as to promote the internal circulation of China's economy and finally realize the domestic and international double-cycle. Management accounting under the double-loop strategy needs to be continuously practiced and theoretically summarized and improved before a new management accounting theoretical system can be truly formed to adapt to the new development pattern, to the digital economy and to the actual development of Chinese enterprises.

The current role of management accounting: paradigm shift and future challenges

PurposeThis paper aims to map the research on management accounting (MA), clarifying its current role and identifying gaps and opportunities for future research.Design/methodology/approachIn this paper, 784 papers were reviewed for the 1958–2019 period, published in 220 scientific journals indexed on Clarivate Analytics’ Web of Science (Science Citation Index Expanded [SCI-EXPANDED] and Social Sciences Citation Index [SSCI]). In the process, content analysis, regression analysis and bibliometric analysis were used.FindingsThe most relevant journals, authors and topics in MA, along with trends and patterns in the literature, were identified. Seven clusters that represent the overall thematic research structure of the MA field were also identified. This study shows that MA is becoming a multidimensional management decision-support instrument covering all organizational dimensions. As such, the research on MA is following the recent concerns with the sustainable development and digitalization of business processes.Research limitations/implicationsBased on the findings of this research study, theoretical and practical implications for MA researchers were provided. These findings could also be useful to industry practitioners to improve their knowledge of emerging trends in MA practices, strategies and concepts.Originality/valueBased on bibliometric and content analysis, a framework that shows an organizational, market and social context for the evolution of MA over the past 60 years was provided. It highlights the dynamics of MA alignment with organizational and external environment changes. Future research opportunities and implications for researchers and practitioners were also identified.

Five Selected Big Corporates in India about SDG Implementation and Role of Management Accountant to Improve the Same

Five Selected Big Corporates in India about SDG Implementation and Role of Management Accountant to Improve the Same

The Role of Management Accounting in Enabling Sustainability in Business: A Comprehensive Review

The Role of Management Accounting in Enabling Sustainability in Business: A Comprehensive Review

Переосмислення суті управлінського обліку в контексті досягнення Цілей сталого розвитку

Introduction. Achieving the Sustainable Development Goals (SDGs) within the framework defined by 2030 is possible only if the socially responsible behavior of citizens, businesses, and public administration bodies is activated in tandem. And business has the most significant role here. The role of management accounting in achieving SDGs has practical dimensions and a strategic task arises to form such accounting and analytical information that can help in achieving the 17 SDGs. Such information should be public, i.e. presented not only to internal stakeholders, but also to external ones, and also show both positive and negative impacts of business on the community and the country within which it operates. Problem Statement. Since there is an objective need to consume accounting and analytical information of a strategic nature in the context of SDGs to meet information needs of various groups of stakeholders, it is worth talking about expanding the traditional understanding of the essence of management accounting (that is, in its legislative definition). Purpose. Rethinking the essence of management accounting in the context of its role in achieving SDGs and making proposals for improving the legally established definition of the term “management accounting” in Ukraine. Methods. General scientific and special methods are used, such as logical analysis, synthesis, comparison, theoretical generalization, and abstract-logical. Results. The conducted analysis of the role of management accounting in achieving SDGs casts doubt on the generally accepted statement that management accounting forms information only for internal users. The article presents arguments that prove the need to amend the Law of Ukraine “On Accounting and Financial Reporting in Ukraine”. The definition of management accounting is proposed, which, taking into account the potential of accounting tools in achieving SDGs, can provide modern information needs of stakeholders motivated by socially responsible behavior. Namely, management accounting should be interpreted as a system of collecting, processing, preparing, and analyzing financial and non-financial information about company's activities for various groups of stakeholders in the process of making management decisions. Conclusions. The clarity in the theoretical aspect regarding the interpretation of the essence of management accounting and confirmation of this in normative legal acts will be an impetus for expanding the practical implementation of management accounting in solving the problems of sustainable development.

INFORMATION LITERACY IN THE DIGITAL ENVIRONMENT, SELF EFFICACY, SERVANT LEADERSHIP ON MANAGERIAL PERFORMANCE: STRATEGIC ROLE OF MANAGEMENT ACCOUNTANTS AS MODERATED MODEL

This empirical research attempts to evaluate the hypothesized relationship between information literacy in the digital environment, self-efficacy, servant leadership, and managerial performance, as well as the moderating role of management accountants.
 This research was conducted by taking a sample of 116 senior managers / staff who have in accounting, finance, marketing and HRD / HCM in Jabodetabek, Indonesia, by distributing questionnaires using Google Form and randomly some managers are visited to fill out statements in the questionnaire sheet. Data analysis techniques using SEM PLS version 3.
 Results from the tests indicate that there is a positive correlation between managerial performance and information literacy in the digital environment, between self-efficacy and managerial performance, between servant leadership and managerial performance and a negative correlation, between self-efficacy and the moderating effect of management accountants, and between servant leadership and managerial performance and a lack of moderating effect of management accountants.
  
 Keywords: Information Literacy, Digital Environment, Self Efficacy, Servant Leadership, Managerial Performance, Role of Management Accountants

The influence of institutional pressure on target setting

We examine whether the desire to maintain sociopolitical legitimacy with critical stakeholders affects sales targets set by Chinese firms. Drawing from institutional theory, we argue that enterprises owned by local government (local-SOEs) feel greater pressure to maintain their legitimacy with the local government relative to private firms (non-SOEs), leading to a stronger association between the provincial GDP target (a legitimate benchmark) and firm-level targets. Results from manually collected data support this conjecture and are robust to alternate measures and samples. Increases in the demand for legitimacy -- measured using exogenous shocks and sample characteristics -- strengthen the association. Finally, changes in the coverage in the official press and changes in target achievement rates document the real effects of this strategy. Our findings demonstrate the effects of institutional pressures on corporate decisions and enrich our understanding on the socially constructed as well as instrumental rationality role of management accounting.

Các yếu tố ảnh hưởng đến áp dụng kế toán quản trị trong các doanh nghiệp vừa và nhỏ Việt Nam

The fact that, the application of management accounting in small and medium enterprises (SMEs) in Vietnam is still quite low, while the role of management accounting is considered to be important in the operation of small and medium enterprises (SMEs). enterprise. This study was conducted to find out the factors affecting the application of management accounting in SMEs in Vietnam. The research results show that five factors have a positive influence on the application of management accounting, including the application of management accounting. competitiveness, degree of decentralization, level of application of information technology, level of concern of managers about the application of management accounting and quality of human resources, in which the level of information technology application Information and competitive pressure are the factors that have the strongest influence on the application of management accounting in SMEs in Vietnam.

MODERN INTERPRETATION OF THE FUNDAMENTALS OF MANAGEMENT ACCOUNTING

The article reveals the basics of management accounting, its purpose and relationship with production and financial accounting. The authors note that the need for the formation of management accounting at a firm or organization arose due to the shortcomings of traditional financial accounting in the form of accounting statements, which does not provide complete information for forecasting economic activity and making operational management decisions, especially for management by field of activity (each process) because they are chronically outdated and lack efficiency. The polemic of foreign and domestic scientists on the purpose and subject of management accounting is carried out. The role of management accounting in the preparation of operational information to management in making managerial decisions is noted. The necessity of planning, budgeting, control and analysis in management accounting is revealed. The existing shortcomings are indicated and the methodology of accounting for cost responsibility centers is proposed. It describes the preparation of information in the context of the company's field of activity, the processes of supply, production, sales and sale of products, the importance of managing these processes in order to generate and increase income.