The paper "Management Accounting Innovation in Modern Organizations " is a good example of management coursework. The process of preparing management accounts that are aimed at providing timely and accurate statistical information which is desired by accounting management agents in a company that can be department managers or the chief executive officer for deciding on the important matter can be defined as the management accounting. These reports indicate the cash available, the money to be received, any outstanding debts, and the amount of raw material as well as in-process inventory.
Management accounting can vary from one organization to the other in term of structure and policy (Seal, Garrison & Noreen 2009, p. 675-680). As per Chadwick (2000, p. 676) management accounting is able to use accounting, management and finance combined with the technology that is required for driving success in the business. It can be said to be a useful tool for advising managers on the financial implications of the projects that may have been initiated in the past; it can also be used to explain the consequence in terms of financing for taking decisions which could be made in the business.
Being an instrumental tool for formulating strategies in the business, it has been aimed for providing desirable performance; Management accounting is able to offer a platform for conducting audits internally and also checks that can be used as a tool for making an impact for the competitive landscape that surrounds the business enterprise. Management accounting innovation in modern organizations As per Emsley (2005, pp. 14– 16) most of the innovation in management accounting happened in the last fifteen years were developed by organizations, one of them being Activity-Based Costing (ABC) as well as Balanced Scorecard (BSC).
Most of the research done in the field attested the fact about adopting ABC or BSC or together has been very helpful. On the other hand, the lack of evidence and support may have caused scepticism in the innovation made and thus rendered it to be non-systematic. Globally, most of the organizations have been able to adopt innovations; most of the firms are also in the process of adopting these innovations or maybe determining the net benefits for adopting these innovations.
One of the common characteristics in the cases is that it has been adopted by organizations which are higher revenue generator. The Activity-based costing is able to recognize that in a modern-day factory for avoiding or disrupting production is the core of the business than being able to reduce the cost of the raw materials. These concepts that are based on activity-based costing is able to deemphasize direct labor being the cost driver than dwelling on activities which drive the cost up, that can be service providers or even producing product component.
Management accounting is also called as a mechanism for managing and controlling cost that provides surveillance in an organization (Emsley, 2006). Role of Management Accountants in driving innovation In managing accounting innovations is also considered to be practices, ideas or even objects which are recognized as being new by the organization which adopts innovations. One of the fundamental perception which denotes that innovations also involve change but all the changes may not involve innovation at all. Thus, management accounting can be defined as the practice for reporting and measuring nonfinancial and financial information which is needed by the managers for making decisions that can be geared towards achieving organizations’ objectives and goals.
Although, the role of these Management accountants cannot be termed adequately for driving innovation in the organizations as per the results of a number of that is conducted in the field research.