...forces of innovation, change and continuity underlying the diffusion of management accounting systems Ran Tao Introduction Accounting is the process of identifying, measuring and communicating financial information about an entity to permit informed judgments and decisions by users of the information. (Weetman, 2010) Management accounting is a specialist branch of accounting which has developed to serve the particular needs of management. It helps companies to formulate business strategies and make right business decisions. Many different kinds of management accounting systems are available, some include cost-accounting system, job-costing system and inventory management system. In order to make a smart business decision, it is important to select an appropriate management accounting system that integrates with the company’ financial accounting system. Management accounting innovations and origins An innovation is the successful introduction of an idea perceived as new into a given social system, management accounting innovations involve a set of design characteristics. (Hopper, 2007) The innovation aspects consist of for example types of cost objects, financial or non-financial data and allocation bases. If a proposed system leads to better decisions than the existing system, and the expected benefits from the proposed system exceed the cost of implementation, the new system is adopted. (Feltham, 1972; Demski, 1980) In this case, innovative management accounting system...
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...Accounting, Organizations and Society 29 (2004) 709–737 www.elsevier.com/locate/aos The effects of the interactive use of management control systems on product innovation Josep Bisbe a a,* , David Otley b ESADE Business School, Universitat Ramon Llull. Avda, Pedralbes 60-62, 08034 Barcelona Spain b Department of Accounting and Finance, Lancaster University, Lancaster LA1 4YX, UK Abstract SimonsÕ Ôlevers of controlÕ framework indicates that an interactive use of management control systems (MCS) contributes to fostering successful product innovation. However, his work is ambiguous in not specifying whether the relationship between interactive controls and innovation is a mediating or a moderating relationship. This paper examines the relationships among variables embedded in SimonsÕ framework of levers of control, explicitly distinguishing the different types of effects involved and testing their significance. The results of the survey-based research do not support the postulate that an interactive use of MCS favours innovation. They suggest this may be the case only in low-innovating firms, while the effect is in the opposite direction in high-innovating firms. No evidence is found either in favour of an indirect effect of the interactive use of MCS on performance acting through innovation. In contrast, the proposition that the impact of innovation on performance is moderated by the style of use of MCS is supported, with results indicating that the explanatory power...
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...International Journal of Trade, Economics and Finance, Vol. 1, No. 2, August, 2010 2010-023X Factors Influencing Activity-Based Costing Success: A Research Framework Zhang Yi Fei and Che Ruhana Isa becoming more and more popular [3-7] ABC aims to provide accurate costing information to managers to allocate activity costs to products and services by applying cost drivers [8]. Academics who advocate ABC, such as, Cooper and Kaplan [9], and Swenson [10] argue that it provides more accurate cost data needed to make appropriate strategic decisions about product mix, sourcing, pricing, process improvement, and evaluation of business process performance. These claims have led many firms to adopt ABC systems [8]. The benefits of ABC and its positive impact on firm’s performance motivated a numerous studies which examined various aspects of ABC. Among such studies are McGowan [11] who assessed the integrity of ABC success, Innes and Mitchell [4, 12] and Yanren [13] who conducted research on factors affecting ABC adoption, and Shield [3], Shields and McEwen [14], Gosselin [15] and Baired et al.[16, 17]who concentrated on factors influencing ABC success especially at the implementation stage. However, there is mounting evidence that suggests most of firms are experiencing problems in implementing ABC and, in some extreme cases, ABC implementation is not successful [3], which later resulted in abandoning the ABC systems altogether [15]. Questions arise as to why ABC implementation is...
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...article of a traditional cost management VS lean cost management by Mahanim Hanid, Lauri Koskela and Mohan Sinwardena, the term of cost management is not a well defined term. It’s built on both cost accounting and management accounting, but goes beyond these two terms (P. Agrawal and Mehra 1998). For Brinker (1996) defines it as a set of techniques and methods for controlling and improving a company’s activities and processes, its products and services. In addition, Maskel (2009) also described that the cost and management accounting is used internally to help the company’s manager control and improve the business. Although there is an accounting standards associated with these tasks, there is no legal requirement to perform these tasks in any particular way or to perform them at all. A company can do as much or as little cost and management accounting as it wishes and it can be done in any way it wants. Furthermore, cost accounting practices are seldom exactly similar in different companies (P. Agrawaland and Mehra 1998). According to text referred, cost management is equally important to all companies, regardless of size. Small companies generally have tighter monetary controls, mainly because of the risk with the failure of as little as one project, but with less sophisticated control techniques. Large companies may have the luxury to spread project losses over several project whereas the small company may have few projects. Cost management is not only “monitoring” of...
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...International Journal of Trade, Economics and Finance, Vol. 1, No. 2, August, 2010 2010-023X Factors Influencing Activity-Based Costing Success: A Research Framework Zhang Yi Fei and Che Ruhana Isa becoming more and more popular [3-7] ABC aims to provide accurate costing information to managers to allocate activity costs to products and services by applying cost drivers [8]. Academics who advocate ABC, such as, Cooper and Kaplan [9], and Swenson [10] argue that it provides more accurate cost data needed to make appropriate strategic decisions about product mix, sourcing, pricing, process improvement, and evaluation of business process performance. These claims have led many firms to adopt ABC systems [8]. The benefits of ABC and its positive impact on firm’s performance motivated a numerous studies which examined various aspects of ABC. Among such studies are McGowan [11] who assessed the integrity of ABC success, Innes and Mitchell [4, 12] and Yanren [13] who conducted research on factors affecting ABC adoption, and Shield [3], Shields and McEwen [14], Gosselin [15] and Baired et al.[16, 17]who concentrated on factors influencing ABC success especially at the implementation stage. However, there is mounting evidence that suggests most of firms are experiencing problems in implementing ABC and, in some extreme cases, ABC implementation is not successful [3], which later resulted in abandoning the ABC systems altogether [15]. Questions arise as to why ABC implementation is...
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...CFOs role in the diffusion of management control systems 29 May 2015 CFOs role in the diffusion of management control systems Abstract Purpose – this paper aims to review the literature on CFOs and their role in diffusing management control systems. Design/methodology/approach – this paper identifies 41 studies from leading academic journals and evaluates 7 of these studies, which deal with CFOs role in diffusing management control systems. The author analyze both research design and actual findings in the field. Findings – The analysis finds that even though characteristics such as education and tenure is shown to have an effect on the innovation of management control systems, there are also contradictions on which characteristics have a significant effect which opens for further research on the subject. Originality/value – the author synthesize the findings and derive a future research agenda. Keywords – CFO, management control systems, upper echelons, literature review Paper type – literature review 1. Motivation Recent papers (Burkert and Lueg, 2013; Hiebl, 2014) suggests that CFOs have become more powerful in recent years and that they are responsible for the diffusion of management control systems across organizations. To examine the role of the CFO in diffusing management control systems, I review literature with a focus on upper echelon characteristics of CFOs and management control systems, which will allow me to clarify the influence CFO characteristics...
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...Contingency theory is perceived by some scholars as a fragmentation of various ideals patched together into a theory of management accounting, nevertheless, it should be recognised that it provides a wealth of knowledge into contemporary management accounting practices. Contingency theory provides enhanced information to the individual which ultimately improves decision making and assists in achieving organisational objectives (Hamas and Lääts, 2002, p. 379). This theory has invaluably provided research evidence that are attributable to contemporary management accounting knowledge and designs. It has provided a profound method to adjust to ever changing external environments and the need for changes in internal factors (Otley, 1980, p. 413). Strengths of contingency theory style research Challenging the criticisms of contingency theory for being fragmentary and contradictory due to its methodological limitations, it is the failure of critiques in realising the many different forms of management accounting designs under the contingency approach and the relationships between those design which have perpetuated this idea (Gerdin and Greves, 2004, p.303). Attention should be shifted to the concepts under which contingency theory has been applied. Contingency theory in its simplest form highlights that an organisation’s structure is conditional upon contextual factors such as environment, strategy and size. One of its key strengths is a congruence approach that it represents...
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...Accounting, Auditing & Accountability Journal Emerald Article: Sustainability accounting and reporting: fad or trend? Roger L. Burritt, Stefan Schaltegger Article information: To cite this document: Roger L. Burritt, Stefan Schaltegger, (2010),"Sustainability accounting and reporting: fad or trend?", Accounting, Auditing & Accountability Journal, Vol. 23 Iss: 7 pp. 829 - 846 Permanent link to this document: http://dx.doi.org/10.1108/09513571011080144 Downloaded on: 04-11-2012 References: This document contains references to 57 other documents Citations: This document has been cited by 12 other documents To copy this document: permissions@emeraldinsight.com This document has been downloaded 5947 times since 2010. * Access to this document was granted through an Emerald subscription provided by UNIVERSITI MALAYSIA TERENGGANU For Authors: If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service. Information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com With over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as well as an extensive range of online products and services...
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... |Updated information on the courses will be sent to successful candidates by Aalto | | |University, School Of Economics. | | | | | |*The same course can be transferred only as 1 course. | |First Level Modules | | |ACC1006 Accounting Information Systems |International Technology Venturing | |BSP1005 Managerial Economics |TU91.2010 Managerial Economics | |MKT1003 Principles of Marketing |23A00210 Introduction to Marketing (6 ECTS)...
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...of Management Accounting Research Edited by Christopher S. Chapman, Anthony G. Hopwood and Michael D. Shields r 2007 Elsevier Ltd. All rights reserved Management Accounting and Operations Management: Understanding the Challenges from Integrated Manufacturing Allan Hansen and Jan Mouritsen Copenhagen Business School, Denmark Abstract: Innovations in operations management, like just-in-time, total quality management, automation, have produced a new manufacturing paradigm that challenges management accounting design and practices. The new manufacturing paradigm, which we conceptualise as integrated manufacturing, focuses upon the lateral flow of products and services, and thereby confronts management accounting ideals of hierarchical flows of information for planning and control. In this chapter, we take a closer look at management accounting research and the responses that have been made to the challenge from the new operational practices. We examine the extent to which changes in management accounting practices are observed, and the way in which design changes are recommended within organisations committed to the new manufacturing paradigm. Furthermore, we reflect upon the role of accounting as a management tool in integrated manufacturing, and on possible future research questions, so as to enrich our knowledge of the management accounting/operations management interface. Introduction Innovations in operations management (OM) have challenged management accounting...
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...ACADEMIC GUIDELINES www.ibs.utm.my ACADEMIC GUIDELINES CONTENTS ITEM PAGE Overview / Background of UTM 4 Philosophy of UTM 4 Vision of UTM 4 Mission of UTM 4 Motto of UTM 4 International Business School (IBS) In Brief 5 Vision of UTM IBS 5 Mission of UTM IBS 5 Core Values 5 Client Charter 6 UTM IBS Organization Chart 7 Postgraduate Administrator 8 Graduate Faculty 9 Enrolment and Duration Of Studies 13 Change of Program Of Study, Type of Registration, And Mode of Study 13 Withdrawal (TD) of a Course 14 Attendance 14 Academic Load 14 Credit Exemption and Transfer 15 Grading System 16 Academic Standing 17 Deferment, Suspension and Termination 18 2 ACADEMIC GUIDELINES ACADEMIC PROGRAMMES MASTER OF BUSINESS ADMINISTRATION (MBA) 20 21 Introduction MBA Course Structure Programme Specifications and Learning Outcomes 23 Course Synopsis 26 21 DOCTOR OF BUSINESS ADMINISTRATION (DBA) Programme Specifications and Learning Outcomes DBA Course Structure 38 41 OTHER INFORMATION REFERENCES UTM IBS Postgraduate Student Society (PGSS) 42 43 3 ACADEMIC GUIDELINES OVERVIEW / BACKGROUND OF UTM The main campus of Universiti Teknologi Malaysia (UTM) is located in a strategic area of 1,177 hectares in the Iskandar Development Region, Johor.UTM has another campus known as the UTM Kuala Lumpur, Jalan Semarak with an area of 18 hectares. The history of UTM began in 1904 as a Treacher Techical School and was later...
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...AN EMPIRICAL INVESTIGATION OF THE EVOLUTION OF MANAGEMENT ACCOUNTING PRACTICES by Magdy Abdel-Kader University of Essex and Robert Luther University of Bristol WP No. 04/06 October 2004 Address for correspondence: Magdy Abdel-Kader Department of Accounting, Finance and Management University of Essex Colchester Essex CO4 3SQ UK E-mail: mabdel@essex.ac.uk 1 An Empirical Investigation of the Evolution of Management Accounting Practices Magdy Abdel-Kadera and Robert Lutherb a: Department of Accounting, Finance and Management, University of Essex, Wivenhoe Park, Colchester, CO4 3SQ (Correspondence address) b: Bristol Business School, U.W.E., Bristol, BS16 1QY The authors are grateful for the constructive comments of participants at the EIASM conference on New Directions in Management Accounting: Innovations in Practice and Research, December 2002, Brussels. Financial support from the Chartered Institute of Management Accountants is acknowledged with gratitude. 2 An Empirical Investigation of the Evolution of Management Accounting Practices Abstract This paper investigates and reports on the status of management accounting practices in UK industry. The analysis operationalises the IFAC statement on Management Accounting Concepts and its description of the evolution of management accounting. The results, based on responses from 123 practising management accountants, suggest that the management accounting employed in many UK industrial companies is not...
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...Digital Accounting Research Vol. 11, 2011 pp. 25 - 43 ISSN: 1577-8517 The impact of Accounting Information Systems (AIS) on performance measures: empirical evidence in Spanish SMEs1 Elena Urquía Grande. Complutense University of Madrid. Spain. eurquiag@ccee.ucm.es Raquel Pérez Estébanez. Complutense University of Madrid. Spain. raquel.perez@ccee.ucm.es Clara Muñoz Colomina. Complutense University of Madrid. Spain. cimunnoz@ccee.ucm.es Abstract. This research study is aimed, based on empirical evidence, at measuring the relationship between the use of the Accounting Information Systems (AIS) by the Small and Medium Sized Enterprises (SMEs) in Spain, and firms’ improved performance indicators and productivity. This empirical study is based on a survey carried out among small and medium-sized firms to ascertain the extent to which development and implementation of accounting information systems had taken place, and subsequently an analysis was made as to how much this introduction may impact on improvement in outcome indicators and productivity. As interesting results we have found that there is a positive relationship among the SMEs that use AIS for fiscal and bank management and better performance measures. This research provides value added in accounting literature given the scarcity of works dealing with the relationship between the application and use of AIS and performance and productivity indicators in SMEs in Spain. Keywords: Accounting Information...
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... Robert Samuel Kaplan was born in 1940. He is an American accounting academic, and a Professor of Accounting at Carnegie-Mellon University and Arthur Lowes Dickinson Professor of Accounting at the Harvard Business School. He had wrote a journal entitled “The Evolution of Management Accounting” in 1983. The purpose of this article is to summarize the development of management accounting, including the new demands for management information, and to develop a research strategy to meet these demands i) THE EVOLUTION OF MANAGEMENT ACCOUNTING (From Robert S. Kaplan point of view) In his paperwork, he divided it into five sections. • Section 1 - Development of cost accounting practices from the early textile mills and railroads (circa 1850) through the formation of the great industrial enterprises in the U.S. and the emergence of the scientific management approach. • Section 2 - Management control innovations of the DuPont Corporation and the General Motors Corporation after its reorganization by Pierre du Pont and Alfred Sloan in 1920. • Section 3 - Development in cost accounting and managerial control form 1925 to the present. • Section 4 - Challenges from the contemporary environment that may not be met by the accounting practices developed more than 60 years ago for a substantially different competitive situation. • Section 5 - Agenda for field based research to document or develop innovative management control practices appropriate for the changing industrial environment...
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...JOURNAL OF MANAGEMENT ACCOUNTING RESEARCH Volume Fifteen 2003 pp. 95–116 Practice Developments in Budgeting: An Overview and Research Perspective Stephen C. Hansen The George Washington University David T. Otley Lancaster University Wim A. Van der Stede University of Southern California Abstract: Practitioners in Europe and the U.S. recently have proposed two distinct approaches to address what they believe are shortcomings of traditional budgeting practices. One approach advocates improving the budgeting process and primarily focuses on the planning problems with budgeting. The other advocates abandoning the budget and primarily focuses on the performance evaluation problems with budgeting. This paper provides an overview and research perspective on these two recent developments. We discuss why practitioners have become dissatisfied with budgets, describe the two distinct approaches, place them in a research context, suggest insights that may aid the practitioners, and use the practitioner perspectives to identify fruitful areas for research. INTRODUCTION udgeting is the cornerstone of the management control process in nearly all organizations, but despite its widespread use, it is far from perfect.1 Practitioners express concerns about using budgets for planning and performance evaluation. The practitioners argue that budgets impede the allocation of organizational resources to their best uses and encourage myopic decision making and other dysfunctional budget games....
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