In this chapter we will look at a few modern ideas in management accounting. Some of them you will have seen before in your studies for Paper F5, but others are here for the first time.
The changing role of the management accountant
The traditional role of the management accountant has been to exercise control, and for this reason they have been largely independent of the operational managers.
More recently management accounting has focussed more on business support. According to Burns and Scapens, there are three main reasons for the change in the management accountants role:
- Changes in technology
- Changes in management structure
- Changes in the level of competition
In addition, the following will have influenced the role of the management accountant:
- Increasing internationalisation and globalisation
- Deregulation and privatisation of industries
- New business processes eg just in time
- A need for more rapid responses
- The increasing importance of non-financial indicators
I love how honest you always are. It certainly helps when studying to know that it’s okay to not know everything 100%.
Isnt Just In Time a relevant topic?
It is in Chapter 16 of the notes. Notes and lectures should both be covered.
flow cost accounting is the best part 馃檪
Indeed.