CRISIS IN MANAGEMENT ACCOUNTING Essay Example
4CRISIS IN MANAGEMENT ACCOUNTING
Crisis in Management Accounting
In the last decade Management accounting have witnessed an increasing change which to according to claims expressed in most accounting literature reveals this to be a professional crisis. Clinton (2007, p. 25) the professional crisis is expressed through paradigmatic shift in expectation in the management accountant, high education programs plays an immense role in omitting management accounting contrary to the expected contribution in the accountancy training programs. For instance, the junior levels have for long continued to weaken delivery of required guidance in preparing students involved on the right and effective ways of running business. On the other hand the public accounting bodies in particular National Association of State Boards of Accountancy (NASBA) among other certified accounting boards have work hard in undeserving and building a reliable source of management accountants.
Use of Old Traditional Tools in Management Accounting
There have been extensive debates on the recent years on issues of management accounting. Claims by Brinker (1994. 22) reveal that management accounting has had little or no changes for over twenty years. This according to them has lost its relevance for the purpose of informing managers on issues of decision making. The response to this critics dwells on certain concerns revealing changes in the way business is done and further there a current innovative management accounting techniques which have been developed across the a versed range of industries all over the world.
Presently, there are prominent management techniques such as activity based costing, in strategically designing and boost modern technology while effectively improving the management process (Clinton, 2007, p. 27). On the contrary, with all this system put in place the management accounting has continued performing poorly. There are changing needs in the academic providers are required to submit themselves as learners rather than teacher in adopting and embracing new ideas. As the institution providers have failed to learn what is needed in management accounting which focuses on effective enterprise management rather than laying more emphasis on accounting profession.
Brinker, B. J. ( 1994). Activity-based management: emerging practices in cost management. London: Warren, Gorham & Lamont.
Clinton, D. (2007). When will the accountancy professionfinally recognize the value of management accountants? STRATEGIC FINANCE , p.24-30.
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