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  • 8/20/2019 Writeup How It Gains Its Relevancy

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    How it gains its relevancy?

     Nelson Maina Waweru (2010) The origin and evolution of management accounting: a review of 

    the theoretical framework.ro!lems and ers"ectives in Management# $olume %# &ssue '# 2010

    The relevance lost movement started in 1982 with a paper presented by Robert Kaplan,

    that stated that the problem with the US manufacturin performance could be traced to

    manaement accountin techni!ues and practices which do not match today"s manufacturin

    environment# $ifferent research mentioned various factors determinin manaement

    accountin chane, but perhaps the most fre!uently !uoted were the competitive economic

    situation of the 199%s and particularly lobal competition# The environment in which

    manaement accountin is practiced has chaned reatly durin that time# The lobali&ation and

    liberali&ation of mar'ets leadin to intensive competition have created the need for firms to

    re!uire !uality and timely information# $ifferent orani&ational structures and new manaement

     practices have emered#

    (n added elementary chane is the advance in information technoloy that has

    ta'en place in recent years# The momentum of technoloical chane over the last )% years

    or so has had a profound effect on orani&ational life# *redominantly sinificant over the

    last +1% years has been the e-tent of the dispersion of computers and computincapacity around the orani&ation# The increased use of the computer has had ma.or effects

    on the nature of wor', especially clerical wor', and on information flows around the

    orani&ation

    The proponents of relevance lost offer strateic cost manaement as a solution# This

    criti!ue has oriinated the latest strateic approach that is bein widely used by practitioners and

    analy&ed by academicians# /onsultants wor'in with practitioners have developed several

    manaement accountin techni!ues durin the last decade# 0or e-ample, the declinin use (/,

    suested by /ooper and Kaplan 19883 has led to the introduction of the Time$riven (ctivity

    ased /ostin Kaplan and (nderson, 2%%43# Kaplan and 5orton have also e-tended the

     balanced scorecard philosophy to include stratey maps Kaplan and 5orton, 2%%%6 (rmitae

    and Scholey, 2%%73 The success of these innovations is a fertile area for future research#