Tag Archives: Management Accounting

Analytical Review of the Current and Future Directions of Management Accounting and Control Systems (Published)

Management accounting and control system practices have changed dramatically throughout the last 200 years. All these changes were in response to rapid technological developments, environmental complexity, changes in organizational structures, managerial style, and many different changes that have emerged throughout the years. The main purpose of this paper is to synthesize the relevant literature to identify the current and future directions of management accounting and control systems practices. This was carried out by following an analytical approach, with the intention of reviewing the literature by emphasizing the developments of management accounting and control system practices throughout the twentieth and twenty- first centuries.  Consequently, a conceptual framework that portray the current practices of management accounting was developed. As a result, insights for the future directions of this discipline were indicated. The findings of this study showed that the role and scope of management accounting has changed from cost determination, to creation of value to customers.  Thus, the different modern techniques that have emerged in response to the needs of contemporary organizations are described.  Furthermore, it articulated that today managerial accountants no longer use a historical view of strategy and operations, but look to predict what the market will do in the future.  Consequently, it is anticipated that even the role, education, and practices of management accountants will continue to change in the future.  Moving from scorekeeping, determining and allocating costs, to developing their predictive, prescriptive analytical skills.  Therefore, it is recommended that more emphasis needs to be placed in developing their personal and technical skills, to obtain a better understanding of contemporary management accounting methods for better support of managerial decision- making.

Keywords: 20th century, 21st Century., Management Accounting, analytical techniques, future developments

Pseudo-Activity-Based Costing Information for Decision-Making in Palestine (Published)

This work aims at making a theoretical contribution about viability of accounting information to enhance resilience in challenging operational conditions. Activity-Based Costing (-ABC) is a newer system that enables managers to cost more accurately, and cost accounting is needed more in Palestinian where Israeli army had erected 648 check points, causing economic recession. This empirical study draws upon a survey of 32 ISO 9000 certified manufacturing enterprises that aspire to modernity. The research question was how do enterprises produce effective costing practices under challenging operational environment in Palestine?  The findings of this study have showed that enterprises were able to improvise and to produce their own version of bespoke ABC, termed “pseudo-ABC”. The system tended to display less complexity than the typical ABC systems in UK. “Pseudo-ABC” is utilized by prosperous manufacturers in Palestine. The system could be applied to analogous dire business environment.

Keywords: Activity-Based Costing (ABC), Financial Information, Management Accounting, Non-Financial Information, Palestine, Pseudo-ABC., Traditional Cost Accounting (TCA)