Strategic Management Accounting

Author(s):  
Sorinel Căpușneanu ◽  
Dan Ioan Topor ◽  
Dana Maria (Oprea) Constantin ◽  
Cristian Marian Barbu ◽  
Mihaela Stefan Hint

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.

2018 ◽  
Vol 5 (3-4) ◽  
pp. 50-56 ◽  
Author(s):  
Nadiya Pylypiv ◽  
Iryna Pіatnychuk

Slow current modernization reforms in the economic sector have significantly weakened the competitiveness of enterprises in EU; therefore, there is a great need for new tools in the managerial decision-making process. Information provision of the decision-making process on expediency of investment activity in the form of capital investments is formed within thelimits of strategic management accounting. In the research except for various analytical methods (analysis, synthesis, comparison, grouping, etc.) a “decisions tree” method is used for choosinga reasonable solution. In the study, strategic management accounting has been defined as a separate kind of management accounting, which involves generation of high-quality information. Certain tools may be applied within it for the decisions made by managers, based on established business partnership with successful implementation of business strategy. Five most widespread groups of tools of strategic management accounting are cost accounting; planning, monitoringand evaluation of effectiveness; strategic decisions; competitor accounting; customer accounting.It is recommended to complete the list of instruments integrated within the five groupsby a separate group – a specific category of supplier accounting that would contribute to the generation of more complete and qualitative information provision for the process of making managerial decisions on the appropriateness of capital investments in the investment activityof the enterprise in EU. The research made it possible to reach the following conclusions. Important components should be taken into account in order to fulfil strategic management accountingof the company in a proper way. Those are data sources choice, collecting and processing of information, choice of instruments of strategic management accounting, formation of internal regulation of strategic management accounting, development and supply of accountingand analytical information; process of solutions development, and the choice, which canprovide generation of necessary information for competitive managerial decisions made by managers. Application of advanced tools for strategic management accounting, which give information to meet issues related to the characteristics of consumers, competitors, suppliers, project costs, assessment of investment feasibility in the project, is caused by the necessity of competitive decision-making with the help of the above-offered decisions tree tool usage


2010 ◽  
Vol 22 (1) ◽  
pp. 85-108 ◽  
Author(s):  
Lisa Marie Victoravich

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.


2020 ◽  
Vol 21 ◽  
pp. 5
Author(s):  
Kamilė Medeckytė ◽  
Daiva Tamulevičienė

he application of strategic management accounting instruments in corporate governance is a significant tool for gaining a competitive advantage, increasing the existing market share, and improving the company’s performance. The article examines the development, concept, and significance of strategic management accounting. There are five areas of strategic management accounting: 1) costing; 2) planning, control, and performance measurement; 3) strategic decision-making; 4) competitor accounting; 5) customer accounting. The main instruments of each area, their advantages, challenges of implementation in enterprise management, and benefits for the efficiency of the organization have been identified.


Author(s):  
Viktoriia Gryn

The expediency of developing strategic management accounting based on the use of a balanced scorecard has been substantiated. The purpose of the article is to identify areas of development of the strategic management accounting system based on the use of a balanced scorecard, as well as obstacles to its effective functioning. The necessity of introducing the position of a strategic management accountant in the conditions of using a balanced scorecard at enterprises has been substantiated. The main differences between a strategic management accountant and a traditional management accountant have been identified. In order to overcome the crisis in the management accounting system, it has been proposed to expand the subject area of the classical management accounting system in order to meet the needs of strategic management of the enterprise. The possibilities of the balanced scorecard to provide comprehensive control and interactive management of the strategic development of the enterprise have been analyzed. The directions for the development of strategic management accounting based on the use of a balanced scorecard have been developed (development of organizational structure for building strategic management accounting system; distinguishing between the functions of strategic management accountants and strategic managers; empirical analysis of the effectiveness of the implementation of a balanced scorecard as an accounting tool). Organizational and methodological obstacles that prevent the introduction of a balanced scorecard as a method of strategic management accounting are identified and systematized into three groups. The job functions and strategic tasks of a strategic management accountant have been formed, which will combine traditional accounting functions for the collection and processing of strategic accounting information with analytical, control and communication functions. Organizational and methodological barriers to the smooth implementation of a balanced scorecard as a method of strategic management accounting in the practice of Ukrainian enterprises have been identified and analyzed (associated with improper performance of strategic management functions; associated with improper performance of their functions by strategic accountants; related to the economic and communication problems of the functioning of a balanced scorecard as an accounting tool).


Author(s):  
N. Iershova ◽  
O. Kryvytska ◽  
Yu. Kharchuk

Abstract. According to the results of studies of scientists researches publications and  empirical studies on accounting and analytical information, the relevance of its formation in the conditions of the concept of sustainable development increases. Attention is focused on the importance of factors influencing the generation of relevant accounting and analytical information for decision-making on sustainable development of the enterprise. The factors influencing the generation of up-to-date accounting and analytical information by focus groups are highlighted. The experience of Ukraine shows that the development of automated information systems in the field of accounting and analysis increases the role of the accountant in the analytical management of the enterprise. The focus is on changing the management style, which affects the formation of relevant accounting and analytical information for decision making. The ability to manage critical situations is a professional competence of the subject of management. This requires in-depth reflection and understanding of each critical situation, the definition of clear positions, the formation of new strategies and management methods. The information value and usefulness of tools and methods of management accounting (system of balanced indicators, budgeting, management reporting, management analysis) for making management decisions by the management of companies are studied. The author’s model of formation of the accounting and analytical information at the enterprise in the conditions of action of the concept of sustainable development is  proposed. Structure of strategic management accounting, which determines the configuration of techniques and methods of forming relevant information is substantiated. The principles of formation of the accounting and analytical information at the enterprise in the conditions of action of the concept of sustainable development are defined. The grounds have been formed for identifying modules of strategic management accounting as effective technology of formation of the accounting and analytical information for needs of management are formed. The proposals on the content and tasks of accounting, analytical, reporting modules in the system of strategic management accounting are determined. Keywords: accounting and analytical information, strategic management accounting, management, sustainable development, decision making. JEL Classification С81, D83, M41 Formulas: 0; fig.: 3; tabl.: 1; bibl.: 13.


Author(s):  
Mykhailo PRODANCHUK

The article investigates the history of stages of emergence and formation of accounting in enterprise management in different countries of the world, taking into account domestic experience, and also determines its development in ensuring strategic decision-making. According to the results of the study, it is found that in the countries of the world there is no single approach of interpretation of "management accounting". It is justified that for English-speaking countries only, the concept of "management accounting" is generally accepted. It is determined that the term "management accounting" is a misinterpretation of the phrase "Management accounting", which literally means "management accounting", not management accounting. This made it possible to clarify the modern understanding of management accounting, which comes down to the disclosure of its first part, that is, the emphasis on the word "managerial", because it is this definition reveals a meaningful content of what is expected of such accounting and what it is intended for. It is determined that the development of management accounting is in an interdisciplinary direction. Systems theory and analysis, law, economic cybernetics, mathematics, probability theory, modeling, models and decision-making methods, information technology and programming. Such synergetics helps to strengthen accounting in business management of enterprises. The study of the historical evolution of management accounting component revealed the patterns of its formation and helped to highlight the six stages of its development in management. Selected stages of accounting form reflect the development of its organization and methodology in management, thereby attesting to the emergence of new ever-growing requirements for both accounting and its data.


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