Question & Answer: The business world is changing rapidly. New business forms can be seen in organisations suc…..

The business world is changing rapidly. New business forms can be seen in organisations such as Airbnb and Uber. Indeed, referring to “uberisation” of business, [Rice and Martin, 2015] in a recent article

(see: http://theconversation.com/what-if-your-managers-work-could-be-replaced-with-an-algorithm-42687) highlights the role of managers in such changing organizational structure. Clearly, if the role of managers is changing, then must be the role of management accounting too.

Please Critically discuss the following question with full explantion, in detail, with more description and examples, with accounting history analysis and connect to the current accounting enviroment.

How management accounting can contribute, both in financial and non-financial aspects, toward the success of modern organizations?

Expert Answer

 

Tradional Accounting only focussed on collecting data, compiling accounts & presenting various financial reports. However under Management Accounting, these reports are used to create various mis, different data sets are being compiled which are then used to analyse/review & provide different decision making sense to all the stakeholders. It enables timely signals for all the users & problem resolutions to minise the damage & enhance benefits. The Mgmt accountants also take some advance account/financial courses/studies.

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