Management accounting_relevance lost critique Free Essay, Term Paper and Book Report
Management Accounting: Relevance Lost A Critique
Critical Appraisal Of The Main Arguments Of Relevance Lost
“Today’s management accountant information, driven by the procedures and cycle of the organisation’s financial reporting system, is too late, too aggregated, and too distorted to be relevant for managers’ planning and control decisions.” (Relevance Lost 1987. Johnson & Kaplan)
The above quote is the opening paragraph in Johnson & Kaplan’s book, summarizing what they felt was wrong with management accounting, below is a set of bullet points which develop the key arguments made in the book.
Main Arguments
• Management accounting systems and techniques in the Western World were as they had been since 1920.
• Information systems were geared towards financial reporting, as was the decision making process, causing a general drift from cost management to cost accounting.
• Existing management accounting could not adapt to new competitive environments, management styles, production techniques and organizational structure.
• Management accounting facilitated t......
Word Count: 2477
Page Count: 9.9 (250 words a page / double spaced)
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