The paper “ Management Accounting Innovation ” is an earnest example of a business assignment. Management accounting innovation is a new idea in an organization that helps the managers to make decisions towards attaining the goals of the organization. This idea is either financial or non-financial information (Horngren, 67). The main purpose of management accounting is to provide managers with information that results in effective decision-making. Therefore management accounting techniques are a vital prerequisite in any organization (Green, 34). Activity-based costing (ABC), Activity-based Management (ABM), Balanced Scorecard (BSC), and Target Costing (TC) are some of the management accounting innovations which have been effective in many organizations when implemented.
Therefore, management accounting innovation is one of the core themes driving any organization. Management accounting systems serve the decision control of the top management as well as the lower level managers. When the accounting systems are used for decision control, innovation brings about the potential for wealth effects to occur. Innovation is considered one of the major determinants of long-term organizational performance (Clark, 90). This means that management accountants are a major body for an organization to meet its goals which is the core aim of any firm; however, this is effective if the managers take and implement the information given to them by the management accountants. The main objective of any organization is to maximize profits and attain its goals.
Management accounting innovations are the main consideration when an organization is aiming at improving its performance. For example, when product innovation is applied it results in improved sales. Product innovation is the development and the launching of products that are unique from the existing ones (Emsley, 157).
Management accounting management is used to improve performance. Performance in any organization is the degree of goal achievement which is financial or non – financial. In this matter, self-rating instruments are developed for evaluating the business effectiveness (Gupta, 45).
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