The paper "Issues in Management Accounting" is a great example of business coursework. Over time, strategic management accounting has been used as a tool in literature constituting to the management accounting procedures. The circumstance form part of the studies done for the past 20 years challenging its existence with some terming it as an “ academic imagination figment” . According to the model, it affirmed that SMA during accounting literature was taken over by the middle managing range with the activities involved being conducted without the input of detailed accounting at the same time failing to include SMA information quantification.
Management accountants further failed to collect and use the quantified accounting figures. A further survey conducted by Langfield-Smith in the year 2008 suggested that strategic management has never been accepted to be the accounting practice with its language being applied to other professions apart from business. The authors have tried to hypothesize the reason behind failures experience during the application of SMA due to various factors like lack of compelling evidence suggesting its use during empirical studies, the benefits through evidence basis and lack of SMA adoption that would make it more successful soon after it is implemented.
Theories have shown that SMA fails to have an agreed definition, set of practices and a conceptual framework form part of its limitations towards implementation. SMA interest has grown since the introduction of strategic management accounting, but the authors' theories that host evidence from recent researches are based on the particular strategic concept. This proposed concept aligning the management accounting ideas is instrumental and deterministic towards organizational strategizing. This results in questioning the benefits of creating a rationalistic and scientific tradition, viewing the concept as an important top-down action where strategic policies govern practice. The management accounting scholars alignment with world’ s materialists and normative results to various SMA data preoccupied with highly “ shoehorning” setting towards account management.
The authors focused on advocating for cost approach and formulating a strategy using cost driver and value chain analysis at the same time involving the investment appraisal as a strategic management tool. Other methods examined various management accounting practices like benchmarking and performance management, attribute costing, and the life cycle is costing.
These factors are further extended by the authors showing the existing labeling techniques like cost management and strategic pricing. The thinking is reversed because the strategy suggested by the Directorate accountants is based on the plans enriched during SMA practices. The authors try to combine other scholarly works challenging the SMA prevailing viewpoints or what it might become in the future. This challenges the management accountants’ capacity when engaging with complex management accounting having single accounting figures when provided with their preoccupation and training with bean-counting and number crunching. Furthermore, the author tries to theorize the synergistic relationship existing between marketing colleagues and finance experts apart from the comprehensive approach on toolbox seen in the strategic management literature. The authors further focused on the Roslender and Hart work maintaining that strategic management accounting should not be regarded as the management accounting by accountants or resonate with the managerial practices and disclosure.
The authors try to bring in alternative perspective like the “ Strategy as Practice” cohort recognizing strategy as developing in different and new dimensions. The researchers under this cohort, as suggested by the authors maintains that their primary focus is the work that the strategist performs in their field of work recognizing the strategic practices that are not deliberately mechanical during their operation.
Indicating that strategy forms the work process where there exist strategic determinations allowing the strategies practice to be based on social construction shift in the disclosure priorities and strategic positioning. Under ASAP, it creates multiple spaces for the performing actors like the middle managers who are supposed to be seen as orientation strategists apart from operational managers.
Langfield-Smith, K., 2008. Strategic management accounting: how far have we come in 25
years?. Accounting, Auditing & Accountability Journal, 21(2), pp.204-228.
Lapsley, I. and Rekers, J.V., 2017. The relevance of strategic management accounting to popular
culture: The world of West End Musicals. Management Accounting Research.
Roslender, R. and Hart, S.J., 2002. Integrating management accounting and marketing in the
pursuit of competitive advantage: the case for strategic management accounting. Critical
Perspectives on Accounting, 13(2), pp.255-277.