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Management Accounting Name Institution Introduction Management accounting is a profession that involves collaborating in decision-making, devising planning management, and management system performance, as well as providing expertise in financial reporting and control (Lucey, 2003)…
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Download file to see previous pages On the other hand, management accounting innovation is the adoption of new ideas or modern forms of management accounting systems. Management accounting innovations are among the central themes driving modern organisations. These modern organisations manage to prosper and retain its success in the aggressive market environments through stable innovations towards organisational prosperity. This paper will outline the contribution of management accounting innovations towards organisational success. 1. Why Management Accounting Innovation is one of the core themes driving modern organisations Innovations are of many types, and research suggests that distinguishing the difference between them is very essential because innovations have different attributes (Schmeisser, 2010). More so, the adoption processes of innovations are not the same and factors affecting them differ. There are different types of innovation that mainly are technical innovation, administrative innovation, process innovation, product innovation, radical innovation and incremental innovation. To start with, technical innovation relates to the major work activities that are carried out in an organisation, while administrative innovation relates to the organisational structure and administrative processes inclusive of the management. Thirdly, process innovation contains an organisation’s process in new elements. ...
Innovations vary differently in different organisations due to the sise and activities of an organisation. However, in management accounting only two innovations are commonly used. These two innovations are administrative and radical innovations. 2. Management accounting is the core theme in driving innovation in modern organisations In the past decades, management accounting strategies included both decision-making and analysis (Emsley, 2005). These past management strategies are claimed to be the predecessor for the emerging innovation and the latest technologies. The modern accounting represents both the operational and the financial planning and control. Managerial accounting is a very essential tool in an organisation because it provides essential data with which the organisation operates. In other words, managerial accounting can be simply referred to as cost accounting. The management accountants have the role of preparing reports that focus on how well or bad managers and the business unit have performed (Lucey, 2003). The management accountants go ahead to measure these performance measures and the results are compared to plans and benchmarks. Most of these reports provide frequent updates on essential indicators and any arising problem is addressed. The main problems that arise in the reporting field are declining in profitability, global market crisis and other emerging problems. These problems are then solved strategically. Therefore, management accounting analyses the past, present and the future of an organisation’s performance through financial transactions. These summarised outputs are essential in planning the current and future stability of an organisation through ...Download file to see next pagesRead More
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