Management Accounting Research 21 (2010) 83–94
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Management Accounting Research
journal homepage: elsevier.com/locate/mar
Knowledge creation for practice in public sector management accounting by consultants and academics: Preliminary ﬁndings and directions for future research G. Jan van Helden a,∗, Harrie Aardema b, Henk J. ter Bogt c, Tom L.C.M. Groot d a b c d
University of Groningen, the Netherlands, PO Box 800, 9700 AV Groningen, The Netherlands Open University, Heerlen and consultancy ﬁrm BMC, the Netherlands, Valkenburgerweg 177, 6419 AT Heerlen, The Netherlands University of Groningen, the Netherlands, PO Box 800, 9700 AV Groningen, The Netherlands VU University Amsterdam, the Netherlands, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands
Keywords: Academics Consultants Public sector management accounting
1. Introduction The public sector has been criticized during the last two decades for being insufﬁciently effective and efﬁcient. New management and accounting techniques have been developed as a response to this criticism. Because marketorientedness is, for instance, considered to be important for improving the functioning of public sector organizations (Walsh, 1995, pp. 251–257; Guthrie et al., 1999, p. 20; Pollitt and Bouckaert, 2000, chapter 4; Groot and Budding, 2004), accurate information about the full costs of services
is needed and this requires new techniques for output measurement and full costing. This implies that management accounting – together with other disciplines like ﬁnancial reporting, auditing and management – may be expected to contribute to a better functioning of the public sector. Management accounting is a practice-oriented discipline, dealing with methods that assist managers in planning and controlling their organization (Malmi and Granlund, 2009). What methods work, and what do not work, is a question with a high relevance to practice, because it relates to what is perceived as beneﬁcial to and by the users of management accounting methods. This also holds for questions regarding conditions for the successful implementation of those methods. Developing new techniques or approaches in the ﬁeld of management accounting, or the adaptation of existing ones, are knowledge creation activities. Organizations
G.J. van Helden et al. / Management Accounting Research 21 (2010) 83–94
...School of Management and Economics Bachelor thesis, 10 p Examiner: Jerzy Kociatkiewicz Tutor: Anders Jerreling
The impact of accounting information on management’s decision-making process
A Case Study
Vera Lengauer Adelheid Mayr Sandie Parasote
(A) (I) (F)
[email protected][email protected][email protected] 1
Wexiödisk AB is a producer of dishwashing machines for professional use. Its headquarter is located in Växjö and its products are present on the European, as well as the Japanese and Australian market. Currently the company is Scandinavian’s leading supplier in its business field. Since 2004, Wexiödisk belongs to an Italian group, called the Ali Group.
For being a successful organisation, it is not only necessary to make decisions, but to implement the right ones. Wexiödisk’s present success, as shown in its leading position, can be led back among other things to a number of beneficial decisions. A decision is concerned with the selection of an action often out of a number of alternatives. In order to choose the right one, decision-makers need some guidance, which is partially provided by information gathered by managementaccounting. Tools used in the managementaccounting area are consequently considered as a helpful support.
Also Wexiödisk focuses on some of these tools, including the...
...Financial Accounting Theory & the Reporting Environment
GHTHH Chapter 2
5. Researchers who develop positive theories and researchers who develop normative theories often do not share the same views about the roles of their respective approaches to theory construction. (a) How do positive and normative theories differ? (b) Can positive theories assist normative theories, or vice versa? If yes, give an example. If not, why not? Normative accountingresearch makes policy recommendations and is concerned with what should be done in contrast to explaining why current practice is carried out in the manner that it is (positive theory). Normative theorists usually attempt to derive either the ‘true income’ or adopt the ‘decision — usefulness’ approach whereby accounting reports are an input into users’ decisions (e.g., to buy or sell shares, management decisions on the financial wealth of firms, etc.). The major issues are the impact of the changing price environment (prices) and the impact on income, assets, liabilities and equity. As a consequence many normative theorists are measurement theorists who attempt to incorporate the effects of inflation into accounting reports. In this sense they take a semantic viewpoint — relating the figures in the accounting reports to actual objects (assets, liabilities) or events (changes in inflation). To some extent the approach of the IASB...
...MANAGEMENTACCOUNTING AND ORGANIZATIONAL CHANGE: IMPACT OF ALIGNMENT OF MANAGEMENTACCOUNTING SYSTEM, STRUCTURE AND STRATEGY ON PERFORMANCE
In the search to understand managementaccounting in competitive environments and advance technologies, change has increasingly become a focus for research. Many firms have experienced significant changes in their organizational design, competitive environments and technologies. Business environments exhibit a variety of structures and processes, including flat and horizontal organizational forms, multidimensional matrix structures, networks of “virtual organizations” and self- directed work teams. When business organizations respond to challenges by embarking on a change management path, they are faced with choices of which one of the management methods, techniques, and systems would be most effective (Waldron, 2005).
Every organization is located within a particular configuration of contingencies. It is dependent on the market and technological environment in which it operates its scale and diversity of operations, the technology applied to its work, and the type of personnel it employs. To achieve congruence, an appropriate design is the one which best suits it’s contextual and operational contingencies. According to Moores and Yuen (2001, p.352), “to be internally consistent,...
An evaluation of the effectiveness of Managementaccounting in aiding decision making.
Statement of the problem
Does managementaccounting contribute positively to the financial performance of the organisation?
Main research problem
The research aims to evaluate the role ofmanagementaccounting in contributing to the decision making process and financial position of the company.
Sub-Problems of the research
Modifications of managementaccounting in the current changing environment in the country (mode of production and business complexity.)
Hypothesis (Alternative and null)
Managementaccounting plays an effective role in contributing to the decision making process and financial performance of the organisation.
Research Questions 223979 224327 228894
1. What is managementaccounting and how does it differ from financial accounting?
2. What is the role of managementaccounting and is the role effectively played played considering the prevailing economy in the country.
3. Does managementaccounting plays a vital role in the company and does it have a...
Management control system (MCS), as a vital part of an organization, which purpose allows organizations to ensure that their activities achieve the objects they desire. The process of designing and improving MCSs requires addressing three basic questions. What is desired? What is likely to occur? And What is the effect of contextual factors ?Then managers must address each of these questions. What controls should be used?
In recent years, contingency-basedresearch has maintained its popularity with studies including these variables but redefining them in contemporary terms. This paper provides a critical review of findings from contingency-based studies over the past 20 years, deriving a series of propositions relating MCS to organizational context. The paper examines issues related to the purpose of MCS, the elements of MCS, the meaning and measurement of contextual variables, and issues concerning theory development (Robert H. Chenhall 2003).
on the effect of contextual variables on the design of Management Control System (MCS). It is tests the effect of each contextual variable on the relationship between MCS design and performance by using survey instruments. It is demonstrates that contextual variables contribute to the design of MCS. The following sections describe how to address each of these questions.
What it is the organization Objectives and, more importantly, strategies that are derived from a good...
The wake of the 21st century brings with it more challenges than the long awaited relief amidst the corporate world. Even with the improvement and introduction of cutting edge technology, management issues still remain a hassle even with the best tools and the best brains in the trade. Problems and issues pertaining to management are very sensitive especially when it comes to managing a company’s finances. The waxing and waning of the world economy makes this process even harder as more and more companies are forced to hire the services of skilled analysts at high cost all the while speculating the outcomes of the economy. However, with the right tools information and skills, a company is guaranteed to stay afloat in a world where businesses keep dropping out of the corporate world. How companies manage their finances and workforce dictates whether the company is bound to open its doors come the next financial year.
One of the major concerns in management is the management of accounts which is usually handled a company’s accountants in conjunction with the management of the company. Managementaccounting specifically deals with generating information pertaining to a given company and basically relates on how to minimize costs while improving sales and boosting profits within the available company’s resources. In short this is...
...1) Managerial accounting has its focus on analyzing and providing cost information within the company internally so that its management can plan, operate and control the company more effectively. In contrast, financial accounting has its focus on the financial statements which are distributed to external stockholders, lenders, financial analysts, and others outside of the company, as mentioned by (K.A. Francis, n.d.)
Knowledge inmanagementaccounting will allow Anne Radhika to have knowledge of basic cost accounting skill, various finance tools and also some tax principles. As Information in managementaccounting is presented internally, it would allow Anne, as an operations manager, to make decisions concerning the daily operations of a business, by keeping track of her production division’s income and expenses. Furthermore, she will learn to analyze the basic data and make forecasts, budgets, etc.
MA has several advantages that coincide with the ability for companies to improve operations and overall profitability. According to (Osmond Vitez, n.d.), it can firstly help to reduce cost: Information from ManagementAccounting assist to review the cost of economic resources and other business operations, allowing Anne to better understand how much money it costs to run her solar power production division. In addition, an analysis can...