Strategic Management Accounting

Paper Summary:

This paper explains that strategic management accounting is a balancing tool for top management that balances risk with opportunity, changes in the market place with pricing, profitability with expansion, and even diversification with withdrawal of an unsuccessful product line. The paper further explains that strategic management accounting is a tool that no modern corporation, regardless of size or its product, can do without in today's global, competitive economy.

From the Paper:

"During the last few years, the ideas and issues of strategic management accounting have received widespread attention in accounting literature and studies. To some, these theories have seemingly been accepted without rigorous investigation. The fact remains that the burden of management is not merely to control people, products, and the bottom line, but to make use of forecasting, turning assumptions into reality, and to utilize accounting figures into making the proper decisions. Accounting, it turns out, has become far more than a "numbers" arm of management. It has become a means of finding the right and most profitable paths to growth and a strong market position."

More papers on Strategic Management Accounting:

• Analytical Essay # 149890 : "Strategic Management Accounting Procedures and Strategies"
• Article Review # 83911 : "Strategic Management in Accounting "
• Analytical Essay # 135613 : "Management Accounting Information Systems"

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