Evolution Of Management Accounting Essay

999 Words4 Pages
Management Accounting combines accounting, management and finance with the leading edge techniques needed to create a successful business striving for success. The management accountant has traditionally been described as having two distinct roles. One role centres on control, the other on decision-making (CIMA Global, 2015). Developments in the business environment have altered the dynamics of these two roles suggesting that the contemporary managing accountant is responsible for providing an increasingly wide range of information to and around the organisation. From the research I have carried out the management accountants of today’s society have little similarity to those of fifty or sixty years ago in my opinion, despite this there are similarities which haven’t gone unnoticed.

The last two decades or so has seen a complete change up in the system, 1925 to 1975 management accounting was heavily influenced by external considerations. Income
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In some cases you can see massive changes which resemble absolutely nothing from what it once was, but on the other hand the traditional role seems still very much still embedded into the modern day methods. Over the last three decades, the role of the management accountant has experience radical changes. Traditionally viewed as a, ‘bean counter,’ the management accountant is now considered a fully-fledged, “business partner” whom participates in a wider range of activities which would have been unheard of ten years ago. However, as in the article I mentioned above, Byrne and Pierce (2007) have highlighted, such a transition is not as straightforward as anticipated and in order to fulfil this role, the management accountant must overcome considerable challenges and
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