Strategic Management Accounting and the Contributions that It Can Make to the Success of Organizations

During the late 1980s, criticisms of traditional management accounting practices were widely beam and new get downes, which were more in tune with the current strong-growing and business environment, fall outd (Drury, 2002, p923). A particularly effective approach was strategical management accounting (SMA). However, Tomkins and Carr (quoted in Drury, 2008, p.570) note that there is no comprehensive definition of SMA, even though it has sure a lot of publicity. This essay will seek to agree the definitions strand in literature. It will also focus on most selected modern management accounting techniques encompassed within the field of view of SMA, much(prenominal) as life-cycle costing, target costing, value chain abbreviation and the match scorecard. Furthermore it will analyze how they can make their contributions towards the superior of an organization. SMA is the ?provision of information to support the strategic decisions in organizations? (Innes 1996, cited in Drury, 2008, p.570) and these strategic decisions usually involve the longer-term, have a Copernican effect on the organization and have both liberal and impertinent elements. This definition is supported by Cooper and Kaplan (1988). A variety of writers have suggested that target costing, life-cycle costing and activity-based management ar additionally encompassed within SMA (Drury, 2008, p.570). Other writers have adopted definitions that SMA emphasizes foreign elements (Drury, 2008).

Simmonds (1981, 1982, cited in Drury, 2008, p.570), who first created the term SMA, views it as the provision and depth psychology of information about a business and its competitors which is useful i n the development and monitoring of the stra! tegy of that business. In his view, profits step to the fore not from internal efficiencies but from the firm?s champion position in its foodstuffs. (Drury, 2008, p.570)Although there is a lack of consensus on what SMA is, some basic characteristics are reflected uniformly, that is, involving the external environment and market place and hence... If you want to get a full essay, order it on our website: OrderEssay.net

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