Course coordinator: Dan Nordin
2010, 09, 29
MANAGEMENT ACCOUNTING THEORY AND USE
In this paper we have tried to focus as a base for our argument on the points explained mainly on the three articles “the role of accounting in organizations & society” (stuart, B. et al), “Ambiguity & Accounting: the elusive link between information & decision making” by James G. March and “Who needs budgets?” (Jermy Hope & Robin Fraser). On the first part of our paper we focus on theory and use of management accounting. On the second part we try to put our arguments and conclusions on the three articles we base.
1.THE ROLES OF ACCOUNTING IN ORGANIZATIONS AND SOCIETY
When we talk about the theory of Management we found the article of Stuart et al and in their article they give emphasis on two important points:
1. The increasing industrialization of accounting craft
2. The growing abstraction or objectification of accounting knowledge
The state has been an active agent both for continued development of accounting system in industrial and commercial business. Such extension of the accounting domain has had major implication for the development of both accounting thought and practice. Similarly the increasing domain for financial information made by the capital market, agencies of the state and organization with in the accounting profession itself has resulted in more extensive and rigorous approach to financial reporting and disclosure. The institutionalization of accounting has occurred at both the organizational and societal levels. Within both business and governmental organizations bookkeeping come to take on a new significance and influence as accounting became a more all embracing form of organizational practice.
Implicated in budgeting and standard... [continues]
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