Analyzing Various Authors on Accounting Management Techniques

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INTRODUCTION

Management accounting can be defined as the use of finance, accounting and management, which drive the success of an organisation and help in providing appropriate information for planning, control and decision making in order to improve the efficiency and effectiveness of operation (Colin Drury 2008).
Cost accounting can be defined as the cost accumulation for inventory valuation to meet the requirements of external reporting and internal profit measurement (Colin Drury 2008).
Traditional accounting involves the intensive and detailed use budgeting for every department and cost centre and for every cost account and sub-account (Hopper et al 2008).
The following could be referred to as the functions of management accounting according to Colin Drury (2008):
• Allocate costs between cost of goods sold and inventories for reporting profit.
• Provide relevant information to help managers make better decisions.
• Provide information for planning, control and continuous improvement.

This essay focuses on the critics and remedies raised by Johnson and Kaplan on the traditional management accounting as well as opinions of other researchers.

This section explores criticisms raised by Johnson and Kaplan on traditional management accounting as published in “Relevant Lost”(1987)

The following are the criticisms by Johnson and Kaplan (1987) on traditional management accounting systems as published in their book “Relevant Lost” that addresses the process by which cost accounting and management accounting had developed:
Johnson and Kaplan were of the opinion that management accounting system failed to attend the information needs of modern production technologies and global competition.
They further highlighted that too much at...

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...bility unlike activity based costing which emphasised more on accurate product cost.

Lastly Ezzamel (1994) highlighted that in order to be able to transform accounting practices into socializing forms of accountability which promotes more means of interaction between organisational members.

CONCLUSION
In conclusion despite all the critics of Johnson and Kaplan books in order to regain the relevance of management accounting their literatures are very much used in addition to the works of other researchers. Furthermore traditional management techniques are equally been used with advanced management techniques such as rolling forecasts, activity based costing and the balanced scorecard. In my own view I strongly support Ezzamel (1994) view, which states that accounting, can be used to reflect a sense while confirming individual attributes of interdependence of self.
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