Strategic Management Accounting - 3162 Words

Introduction Firms are now should face a lot of competition because a lot of changes in contemporary business, such as globalization of world trade, changing product life cycle, changing customers tastes that demand to improve levels of service in cost, quality, reliability, delivery and the choice of new products; and the emergence of e-business and so on. As a result of the defects of traditional accounting have been unable to meet these changes new management themes have evolved which in turn has resulted in the development of strategic management accounting. Strategic management accounting aims to provide relevant information to an organization’s management to enable them to make strategic plans and strategic decisions. The†¦show more content†¦Attention directing involves helping managers properly focus their attention. Attention directing should focus on all opportunities to add value to an organization, not just cost-reduction opportunities. The roles asked pay attention to which opportunities and problems should be emphasized first. In the company, management accountants also need to face decisions that affect the welfare of people internal and external. The process of determining standards and procedures for dealing with judgmental decisions affecting other people is known as ethics. In a global market, and with a trend to delegate decision making to lower levels of the organization, organizations often implement ethics programs to ensure that employees understand how ethics relates to the organization’s core strategies. Management accountants often provide ethical policy and strategy implementation, especially as they role in decision-making and control, advice and support. In a word, the accountants in Jessup undertake a role to help managers make intelligent economic planning and decisions, and help managers and other employees to aim and strive for goals of the organization. Relevant and irrelevant costs and revenues for decisionShow MoreRelatedStrategic Management Accounting13457 Words   |  54 Pagesof this journal is available at www.emeraldinsight.com/0951-3574.htm AAAJ 21,2 Strategic management accounting: how far have we come in 25 years? Kim Langï ¬ eld-Smith Monash University, Melbourne, Australia Abstract Purpose – The purpose of this paper is to provide a review of the origins of strategic management accounting and to assess the extent of adoption and â€Å"success† of strategic management accounting (SMA). Design/methodology/approach – Empirical papers which have directly researchedRead MoreStrategic Management Accounting1773 Words   |  8 PagesSTRATEGIC MANAGEMENT ACCOUNTING This report will attempt to explain what Strategic Management Accounting (SMA) is, how it developed, why Traditional Management Accounting (TMA) is not sufficient to provide information for strategic decisions and the difference between SMA and TMA. It will further outline some of the essential analytical tools or techniques in SMA such as Activity Based Costing (ABC) and the Balanced Scorecard (BSC). SMA is an extremely broad concept, so in order to give a bird’sRead MoreStrategic Management Accounting2093 Words   |  9 PagesWhat is Strategic Management Accounting? And why, Strategic Management Accounting? Simple definition: Management Accounting in the context of business strategies being planned and implemented by an organisation. Strategy is the way that a firm positions and distinguishes itself from its competitors. These business strategies must be developed in the context of the internal and external environments so that they are practical, or else they will remain a theoretical wish-list. It is alsoRead MoreStrategic Management Accounting2595 Words   |  11 Pagesmeeting target budgeted profit. This is a critical situation where management of Manac plc should understand and evaluate the key strategic management accounting models and concepts which may affect to decisions made with regard to products’ cost and price. Manac plc presently uses traditional management accounting concepts such as standard costing and absorption costing methods as a part of its approach to strategic management accounting. The reasons for the company not to achieve target budgeted profitRead MoreRole Of A Strategic Management Accounting Essay1317 Words   |  6 Pagesand Goddard 2008) investigating the role of strategic management accounting in an organizational setting? The role of strategic management accounting (SMA) is a relatively new concept especially within organizational settings (Juras, 2014). In addition to being new, it posits as an interesting field of study since existing literature evidences that conducting management accounting in relationship with strategy is problematic (Endraria, 2015). Accounting managers endure challenge of aligning functionalRead MoreStrategic Management Accounting : The Beginning Essay1797 Words   |  8 PagesIntroduction Discussion 1. Strategic Management Accounting: The Beginning To survive and succeed in the ever-evolving global business climate requires an understanding on how to formulate business strategies that are future proof (Daud, 2012). In reaction to this growing pressure firms are looking for innovative ways to remain competitive and apply a strategic perspective in every aspect of their business. This led to a close up on conventional management and cost accounting practices and sparked criticismRead MoreQuestions On Strategic Management Accounting2396 Words   |  10 PagesOver the past recent years a new term namely â€Å"Strategic Management Accounting† has been introduced in management accounting discussion. In the following years and still today, a debate about what SMA comprises has been oriented. It is considered widely by organizations while drafting and implementing strategic planning and control system in an organization. This essay will elaborate the understanding and analyzing of work done by CIMA and some other surveyors in r elation to this field. SecondaryRead MoreManagment Accounting, Financial Control, Management Control, Strategic Management Accounting (Sma)3965 Words   |  16 PagesIntroduction: To better understand differences between many similar types of terms in accounting such as management accounting and financial accounting, management control and financial control and strategic management accounting we will explore the case study of TNT and how the company has been able to implement these important concepts practically in this case. Firstly, we will see how the management and financial controls were used in order to achieve what Taylor say’s is Critical Mass. We willRead MoreStrategic Management Accounting and Balanced Score Card11170 Words   |  45 PagesCHAPTER 17: ACCOUNTING FOR STRATEGIC MANAGEMENT CHAPTER OUTLINE ï  ± ï  ± ï  ± Learning outcomes Introduction Organisational strategy o Definition o Cumulative strategy (strategising) ï  ± Strategic management accounting (SMA) o Definition o Components of SMA o Does SMA still exist; or, what is it becoming? ï  ± The balanced scorecard o Its origins and its purpose o Elements and characteristics of a balanced scorecard o Designing a balanced scorecard o Features of a balanced scorecard o Why hasRead MoreStrategic Management Accounting : Cost Advantage And Differentiation Advantage996 Words   |  4 PagesTraditional management accounting is cost driven with short-term pricing and profit motive. It is fragmented and has internal and financial focus. Strategic management accounting is market driven with long-term pricing and profit motive. It is integrated and has value and external focus. Strategic management accounting raises the issues and addresses the weaknesses of traditional management accounting in the modern market place. Strategic management accounting requires the application of strategic management