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Contemporary Issues in Management Accounting - Assignment Example

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Management accounting has been transforming, and while this is happening, studies were being conducted to reveal the essence of such changes to organizations. The first portion of this paper includes an introduction of the aim of the report which is to provide basic information…
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Contemporary Issues in Management Accounting
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Contemporary Issues in Management Accounting

Download file to see previous pages... The Balanced Scorecard was referred to as a means to illustrate the "cause and effect relationship of strategic objectives" (Creelman & Makhijani, 2011). Next is the behavioral aspect of budgeting, which has been considered a relevant component to the study of organizational behavior. In conclusion, it has been claimed that the ABC, the balanced scorecard, and the behavioral aspects of budgeting are useful in todays modern business environment. As a recommendation, it has been proposed that a broader and continuous research be conducted to allow the evolution of management accounting.
The report intends to present a brief view of the changes brought by the evolution of management accounting research to modern industrial management. Furthermore, it also aims to examine the impact of these significant changes to the administration of modern business or modern industrial management. To provide an idea of the areas focused by researchers in the field of management accounting, it will tackle three relevant topics covered by management accounting research such as the ABC (Activity Based Costing), the Balanced Scorecard, and the Behavioral Aspects of Budgeting. These topics will then be explored in relation to modern industrial management or modern business. The present methods applied in management accounting are being rooted from those applied by people in the past. Understanding the distant origins of these techniques is necessary in order for one to appreciate the use of such methods in todays modern world.
The study of accounting has always been considered difficult and arduous. It is one challenging aspect of business that requires research for its continuous improvement (Argenti, 2002, p.172). Hence, a conscious effort also has to be made to understand the beginnings of management accounting (Porter & Ross, 2003, p.566). For over twenty years, management accounting research has evolved ...Download file to see next pagesRead More
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