Management Accounting Case Study

717 Words3 Pages
Chua & Briers (2001, p267) found that success and failure of a management accounting technique is “a fragile construction that turns on the strength of diverse ties tying together many heterogeneous elements.” In their experiment, they found that the ABC model that ultimately succeeded was a hybrid of human and non-human elements and was made to succeed. Conversely, the predecessor to ABC, the ‘plant integrated standard cost system’ (PISCS), ultimately crumbled, not because it did not fit the company’s goals, but because it was not made to succeed (Chua 2001). The trials conducted by Briers & Chua (2001) illustrate the significance of inscriptions and boundary objects in the success and failure of an accounting technique. Inscriptions are defined as what is found “at the end of a process of sorting out traces and connecting…show more content…
Data repositories for instance, allowed all the systems at Alroll to use such repositories, resulting in the temporary success of each system. That is, data from PISCS was later used in ABC (Briers and Chua, 2001). In addition, the ideal and visionary boundary objects, that is, the drive of management to implement “better” and “world best practice” techniques, also assisted in the success of each technique, as without Harry’s drive improve accounting methods, other boundary objects may have never been connected. Perhaps the most illustrative boundary objects in the Alroll example, were the techniques themselves. ABC for instance, ultimately succeeded because it was made to. Brier and Chua (2001) explain this as ABC’s concrete core consisting of interconnected terms such as “activities consume resources” and “product costs should reflect resource consumption.” The terms such as “activity cost pools” and “cost drivers” were able to moulded into familiar practices, thus facilitating flow across actor-world boundaries (Briers and Chua,
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