When Do Opportunity Costs Count? The Impact of Vagueness, Project Completion Stage, and Management Accounting Experience

2010 ◽  
Vol 22 (1) ◽  
pp. 85-108 ◽  
Author(s):  
Lisa Marie Victoravich
Keyword(s):  
Decision Making ◽  
Management Accounting ◽  
Relevant Information ◽  
Opportunity Costs ◽  
Decision Making Process ◽  
Business Partner ◽  
Project Completion ◽  
Management Accountants ◽  
Two Factors ◽  
The Impact

ABSTRACT: Management accountants have recently migrated toward a business partner role, and as a result they often assist management with the decision-making process. Thus, it is imperative that they excel at identification of relevant information such as opportunity costs. This study experimentally tests the prediction that management accounting experience mitigates the tendency to ignore opportunity costs with respect to two factors: opportunity cost vagueness and project completion stage. This study also investigates whether attending to opportunity costs has an impact on project continuance decisions. Results indicate that management accounting experience mitigates the effect of vague opportunity costs and project completion stage. It was also found that attention to opportunity costs acts as mediator and this in turn reduces the tendency to continue an existing project. This suggests that attending to opportunity costs influences decision-making and that it is likely to have an economic consequence.

Strategic Management Accounting

2021 ◽  
pp. 1-29
Author(s):  
Sorinel Căpușneanu ◽  
Dan Ioan Topor ◽  
Dana Maria (Oprea) Constantin ◽  
Cristian Marian Barbu ◽  
Mihaela Stefan Hint
Keyword(s):  
Decision Making ◽  
Strategic Management ◽  
Management Accounting ◽  
Decision Making Process ◽  
Managerial Decisions ◽  
Strategic Management Accounting ◽  
Management Accountants ◽  
The World ◽  
Methodological Approaches ◽  
Managerial Level

This chapter deals with some dimensions of strategic management accounting, including the instruments with which they operate and interconnect in order to make managerial decisions. The main objectives of this chapter are to present the general approaches of the concept of strategic management accounting, the dimensions of the application of strategic management accounting, and the strategic tools used by companies in establishing strategies and making decisions. Based on the specialized literature, the authors present the most significant theoretical-methodological approaches to strategic management accounting, the participation of management accountants in the decision-making process, the tools used by strategic management accounting. All aspects presented by the authors are based on existing literature, university studies, and specialized literature from around the world. The chapter concludes with the conclusions of the authors regarding the dimensions and implications of using the specific tools of strategic management accounting for decision making at managerial level.

scholarly journals Ethical Decision Making Process of Albanian Accountants: the Impact of Organizational Factors

2015 ◽  
Vol 2 (1) ◽  
pp. 33
Author(s):  
Loreta Bebi ◽  
Brunilda Llaftiu
Keyword(s):  
Decision Making ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Organizational Factors ◽  
Developed Countries ◽  
Decision Making Process ◽  
Process Data ◽  
Organizational Variables ◽  
Management Accountants ◽  
The Impact

Taking into consideration the fact that nowadays ethics regarding the accounting profession constitutes one of the most discussed issues all over the world this paper aims to study the impact of organizational variables in the ethical decision-making process of Albanian accountants. Based on the previous researches made mainly in developed countries and as in Albania researches regarding this discipline are extremely rare in this study four organizational variables will be considered:Code of Ethics, industry type, organization size and ethical climate.A sample of about one hundred management accountants who work in Albanian organizations was chosed and they were asked to fill a questionarie regarding these variables and their impact in the ethical decision-making process. Data were entered and processed in SPSS and concluded that these factors have no significant in the ethical decision-making process of the accountants. This study represents a simple contribution for our country as we have an emerging economy for which understanding the factors that influence the ethical decision-making process is crucial.

Occupational identities of management accountants: the role of the IT system

2018 ◽  
Vol 19 (4) ◽  
pp. 465-482 ◽  
Author(s):  
Rafael Heinzelmann
Keyword(s):  
Reference Point ◽  
Management Accounting ◽  
Resource Planning ◽  
Identity Work ◽  
Business Partner ◽  
Content Type ◽  
It Systems ◽  
Management Accountants ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of IT systems on occupational identities of management accountants. The author highlights the pivotal role of the IT system as a central reference point for organisational identity regulation and identity work. Design/methodology/approach The paper is based on a qualitative case study approach. Findings The IT system presents the central means of establishing appropriate behaviour in case organisation (“identity regulation”). At the same time, the IT system acts as a sense-giving device (“identity work”) – the central reference point for management accountants to make sense of their work. In addition, the system creates more dirty and unclean work (Morales and Lambert, 2013), producing dissonance between the business partner role and the organisational reality, which is resolved by relating dirty and unclean work through use of the SAP Enterprise Resource Planning (ERP) system. Research limitations/implications The paper suggests to understand IT systems as an important driver of the management accounting work shaping the occupational identity of management accountants. Practical implications The author aims to sensitise practitioners and organisations to the potential risks of relying too strongly on IT systems – a behaviour which can limit the professional judgement and business insight of management accountants. Originality/value The author contributes to the discussion on how technological disruptions, e.g. ERP implementation, Big Data, business analytics, digitalisation, change management accountants’ identity and management accounting work. The author shows how organisations establish appropriate behaviour and how management accountants make sense upon dissonances between the professional ideals exemplified by business partner role and the organisational realities.

scholarly journals The Effect of Managerial Accounting on the Quality of Decision-Making

2020 ◽  
pp. 544-552
Author(s):  
Dr. Omar Mohammad Al-Hawatmeh
Keyword(s):  
Decision Making ◽  
Management Accounting ◽  
Practical Experience ◽  
Decision Making Process ◽  
Managerial Accounting ◽  
Factors Affecting ◽  
Industrial Companies ◽  
Internal And External Factors ◽  
The Impact

This study aimed to know the impact of managerial accounting on the quality of decision-making, including the actual impact on the strength of competition with companies, The study also aimed to clarify the importance of the decision-making process and clarify the factors affecting it, whether internal or external, and to indicate the existence of information that helps in decision-making processes in circumstances of uncertainty and clarify the effect of using the management accounting information necessary to analyze the data and conditions accompanying the decision-making process and explain the importance of the information Accounting that helps the organization and consistent with its circumstances and capabilities so that it reflects on the facility profits and its financial position positively, It also aims to identify the extent to which industrial companies use management accounting methods, and to achieve these descriptive goals analysis and inductive analysis approach that followed for specialized industrial companies. The study sample included (40) companies, and the study concluded a number of results, most notably: that the decision-making process is the fundamental essence of the success of management operations in industrial companies, where the decision is based on practical experience and on scientific knowledge and essential studied within an organized framework, and that the decision-making process in industrial companies is affected by internal and external factors.

scholarly journals The Impact of Social Media Use on Consumers’ Restaurant Consumption Experiences: A Qualitative Study

2021 ◽  
Vol 13 (12) ◽  
pp. 6581
Author(s):  
Jooyoung Hwang ◽  
Anita Eves ◽  
Jason L. Stienmetz
Keyword(s):  
Decision Making ◽  
Social Media ◽  
Selection Process ◽  
Decision Making Process ◽  
Structured Interviews ◽  
High Standards ◽  
Tourism And Hospitality Industry ◽  
Tourism And Hospitality ◽  
Search For Information ◽  
The Impact

Travellers have high standards and regard restaurants as important travel attributes. In the tourism and hospitality industry, the use of developed tools (e.g., smartphones and location-based tablets) has been popularised as a way for travellers to easily search for information and to book venues. Qualitative research using semi-structured interviews based on the face-to-face approach was adopted for this study to examine how consumers’ restaurant selection processes are performed with the utilisation of social media on smartphones. Then, thematic analysis was adopted. The findings of this research show that the adoption of social media on smartphones is positively related with consumers’ gratification. More specifically, when consumers regard that process, content and social gratification are satisfied, their intention to adopt social media is fulfilled. It is suggested by this study that consumers’ restaurant decision-making process needs to be understood, as each stage of the decision-making process is not independent; all the stages of the restaurant selection process are organically connected and influence one another.

scholarly journals Management Accounting Information in Vietnamese Small and Medium Sized Enterprises

2017 ◽  
Vol 7 (1) ◽  
pp. 130
Author(s):  
Thi Tu Oanh Le ◽  
Thi Ngoc Bui ◽  
Manh Dung Tran
Keyword(s):  
Decision Making ◽  
Human Resources ◽  
Management Accounting ◽  
Accounting Information ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Employment Opportunities ◽  
Management Accountants ◽  
Personal Experiences ◽  
Planning Decision

The small and medium-sized enterprises (SMEs) in Vietnam play an increasingly important role in the economy by the amount (representing 97.7% of Vietnam firms), contribute economic development and create more employment opportunities. However, because of economic crisis, financial downturn, unhealthy competitions, free trade agreements and others, the number of SMEs recently is downsizing in firm size, human resources and more and more SMEs go bankruptcy in the context of Vietnam. This situation may be due to the enterprise use ineffective management accounting tools.This article reviews and assesses the creation and use of management accounting information which has an important part to play with respect to planning, decision-making, monitoring and controlling of the activities of SMEs in Vietnam. Data collected from a posted survey of five enterprises with twenty two interviews of directors, chief accountants and management accountants. The results show that management accounting information has not really been interested from managers and accountants. Management accounting information is weak in quantity and poor in quality; administrators are operating firms primarily based on personal experiences. Therefore, management accounting information has not been promoted in the management, monitoring and decision making of SMEs in Vietnam. The addition of management accounting knowledge for managers and accountants is necessary for development of SMEs.

Is Hindsight Really 20/20?: The Impact of Outcome Information on the Decision-Making Process

2018 ◽  
Vol 17 (3) ◽  
pp. 285-296 ◽  
Author(s):  
Amanda Beltrani ◽  
Amanda L. Reed ◽  
Patricia A. Zapf ◽  
Randy K. Otto
Keyword(s):  
Decision Making ◽  
Decision Making Process ◽  
Outcome Information ◽  
The Impact

scholarly journals Nature value: the evolution of this concept

2012 ◽  
Vol 36 (1) ◽  
pp. 9-15
Author(s):  
Sabrina Soares da Silva ◽  
Ricardo Pereira Reis ◽  
Patrícia Aparecida Ferreira
Keyword(s):  
Decision Making ◽  
Natural Resources ◽  
Environmental Degradation ◽  
Economic Valuation ◽  
Human Action ◽  
Decision Making Process ◽  
Environment Management ◽  
Goods And Services ◽  
Current Scenario ◽  
The Impact

More attention has been paid to environmental matters in recent years, mainly due to the current scenario of accentuated environmental degradation. The economic valuation of nature goods can contribute to the decision-making process in environment management, generating a more comprehensive informational base. This paper aims to present, in a historic perspective, the different concepts attributed to nature goods and were related to the current predominant perspectives of nature analyses. For this purpose, this paper presents the different concepts attributed to value since the pre-classical period, when nature were viewed as inert and passive providers of goods and services, this view legitimized nature's exploration without concern over the preservation and conservation of nature. The capacity of nature to absorb the impact of human action appears to be reaching its limit, considering the irreversibility, the irreproducibility and the possibility of collapse. The appropriate method for valuing natural resources is not known, but more important than the method is to respect and incorporate the particular characteristics of the nature goods into this process. These characteristics must be valuated in order to arrive at a more consistence approach to nature value and promote sustainability.

scholarly journals Expert System for Diagnosis of Uterine Myomas using the Certainty Factor Method

2021 ◽  
Vol 1 (4) ◽  
pp. 103-108
Author(s):  
Syahrizal Dwi Putra ◽  
M Bahrul Ulum ◽  
Diah Aryani
Keyword(s):  
Artificial Intelligence ◽  
Decision Making ◽  
Expert System ◽  
Computer System ◽  
Decision Making Process ◽  
Certainty Factor ◽  
Uterine Myomas ◽  
Factor Method ◽  
Two Factors

An expert system which is part of artificial intelligence is a computer system that is able to imitate the reasoning of an expert with certain expertise. An expert system in the form of software can replace the role of an expert (human) in the decision-making process based on the symptoms given to a certain level of certainty. This study raises the problem that many women experience, namely not understanding that they have uterine myomas. Many women do not understand and are not aware that there are already symptoms that are felt and these symptoms are symptoms of the presence of uterine myomas in their bodies. Therefore, it is necessary for women to be able to diagnose independently so that they can take treatment as quickly as possible. In this study, the expert will first provide the expert CF values. Then the user / respondent gives an assessment of his condition with the CF User values. In the end, the values obtained from these two factors will be processed using the certainty factor formula. Users must provide answers to all questions given by the system in accordance with their current conditions. After all the conditions asked are answered, the system will display the results to identify that the user is suffering from uterine myoma disease or not. The Expert System with the certainty factor method was tested with a patient who entered the symptoms experienced and got the percentage of confidence in uterine myomas/fibroids of 98.70%. These results indicate that an expert system with the certainty factor method can be used to assist in diagnosing uterine myomas as early as possible.

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