writeup how it gains its relevancy
TRANSCRIPT
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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#