Write a 10 page essay on Topic: DOES FUTURE OF MANAGEMENT ACCOUNTING LIE IN STRATEGIC MANAGEMENT ACCOUNTING.
With change in time, the importance of strategies has increased in the sense that managers have no leeway in case a strategy is wrongly formulated. The primary objective of management accounting system is to help the organisation to achieve its strategic objectives. “Strategy is the way a firm positions itself from its competitors” (Ansari, e
t. al, n.d., p.6). With the rapid and unpredicted changes in the business environment, competition has also been intensified. It is high time for the organisation to align all its efforts to beat the competition and enhance its performance. In such a competitive environment, even the decision making process seems to be very difficult. With the spread of companies across geographical borders, it has become imperative for managers and business leaders to get access to critical business data which, when analysed properly, can lead to a better and clearer picture of the organisation. This is the area where strategic management accounting has been assuming greater importance consistently. Strategic management accounting can be seen as an enhanced tool to reduce the issues with decision making process. This recent arena of the accounting field has emerged as a significant tool to help the companies in achieving competitive advantage in the market.
Management Accounting is a system which collects, classifies, summarises, analyses and reports information assisting the managers in the decision making and control activities. Management accounting demands both the collection, analysis and interpretation of financial or cost data, other data such as sales, price, product demands and measures of physical quantities and capacities (Controller General of Accounts, n.d.). Management accounting also considers preparing financial reports for non management groups like shareholders, regulatory agencies, creditors and tax authorities. In this accounting system, the operational results have been reported using financial and non- financial