History Of Management Accounting And Its Roles Essay

History Of Management Accounting And Its Roles Essay

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Introduction
Management accounting is a branch of accounting, it is apply accounting and financial management principles to establish, protect, save and raise value in order to deliver this value to stakeholders of private and public enterprises (Bhimani, 2012). The aim of management accounting is to improve enterprise economic revenue, using a series of methods and processing, sorting and reporting the information of financial accounting to make the enterprise management personnel at all levels can planning and control the daily economic activities and to help decision makers to make decisions(Weetman, 2011).
According to Carmona and Donoso (2004), they use a case to explain from 1525 to 1692, there is no management accounting. Also, Ezzamel, Hoskin and Macve (1990) review Johnson & Kaplan 's 'Relevance Lost ' is clearly shows the history of management accounting is very short, but its appearance can defined as improving techniques. This essay will show the history of management accounting and through the history to discuss it can defined as improving techniques.




The origin of management accounting

According to Johnson and Kaplan (1987), Edwards and Newell (1991), the origin of management accounting can traced back to the early 19th century, the use of internal measurement by enterprise management, such as military enterprise and the textile enterprise. The common features of these enterprises are finish multi-step produces product in an economic organization, in this mode of production in order to manage the efficiency in the process of production, they need to get more information about the internal production to reflect the production efficiency of the parts in the process of production.

In the 1850 s,a textile factory...


... middle of paper ...


... management accounting -- behavior accounting. After entering the 1970s, scholars in the research of management accounting theory system have reached the peak. This period of management accounting is focus on ‘efficiency’, it emphasized first doing right things and then doing things right.

In summary, from 1950 to 1980, management accounting formed in ‘decision and plan of accounting’ and ‘Performance Accounting’ as the main body of the structure system of management accounting. This means that the management accounting system has been basically mature. Compare with 1900-1950 and 1950-1980, it is obviously found that management accounting technology improved. From the fuzzy theory to clearly theory, from unable to adapt practice to adapt practice and improve new techniques. These all shows the history of management accounting is a trajectory of improving techniques.

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