Traditional Management Accounting and Innovation Management Accounting

It is not difficult to find menstruum business surroundings tending to be very competitive, with higher(prenominal) degree of breeding transparency, guest loyalty. The companies are competing not only if in terms of ware price and quality just now also on services such as delivery, dependability and customer satisfaction. embodied social responsibility and corporate administration is shifting its stance from the producer to that of the consumer for understanding the key elements composite in a better shopping experience and forms an inherent part of non pecuniary quantity of quality expectations. This the business enviroment inspire from focus on product placement to more on customer side which measured by the non- financial measurement. Implementation of the non-financial measures, in concert with the financial measures can be done by utilise dodge map and balanced scorecard system, which result to the fit of shortstop and long-term aims in all threesome aspect s of the companion surgical operation - customer, home(a) business process and learning & group A; innovation. that with these changes ,traditonal mangement accounting considered to be too curb to leave applicable information for the long-term development . (Drury, 2008)This essay pass on evaluate the traditonal management accounting in comparison with the new mangement techique.

It is criticized that the traditional management accounting is not fit for the legitimate business environment that generate information to meet the three goals of management accounting. The initial objective is to allocate costs in the midst of goods sold and inven! tories for internal and external profit reporting. The second goals is to interpret relevant information for the manager to make decisions. Finally, it is essential for planning ,control and performance measurement information. (www1) Secondly, traditional accounting is short-sighted, only show in the short-run. tralatitious management accounts for focus only on the control of work capital. This evaluation of the investment program is limited to financial benefits from the perspective... If you urgency to get a full essay, enjoin it on our website: OrderCustomPaper.com

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