Does Ma Relevant?
Has The Management Accounting Information in Malaysia Losing Its Relevancy?
Rosniza Binti Ramli
Universiti Teknologi Mara, Malaysia.
Abstract
Malaysia is one of the developing countries that affected by the globalization process and emerging economic environment throughout the world. To be sustain in future, Malaysia organization especially should cope and response effectively with the changes in economic sector. But, has the management accounting information can help the manager in making good decision for their organization? Does management accounting in Malaysia also evolve or changes due to an emerging economic environment? Research papers on Relevance Lost: The rise and Falls of Management Accounting and Evolution of Management Accounting (IFAC, 1998) will be discussed further in this research in order to have better understanding about changes and evolution of management accounting in Malaysia. This research done by reviewing the prior research, articles, thesis and journals. The changes and evolution has been found based on the reviewed of prior research.
Introduction
Research papers on Relevance Lost by Johnson and Kaplan found and gave us the picture of the rise and fall of management accounting throughout the centuries. The authors explored about nineteenth-century cost management system, efficiency, profit and scientific management on 1880 to 1910 until management lost its relevance on 1980s. Furthermore they analysed and explored the new global competition and new systems for process control and product costing and also performance measurement system for the future. In nineteeth- century, companies having a transformation process from two or more process into a single economic activity. In all cases, the information focus on how to improve the process of managing the resources effectively and also do determine the sources of companies profit. In late nineteenth-century, conversion cost system was emerged to systematic management where focused on
Rosniza Binti Ramli
Universiti Teknologi Mara, Malaysia.
Abstract
Malaysia is one of the developing countries that affected by the globalization process and emerging economic environment throughout the world. To be sustain in future, Malaysia organization especially should cope and response effectively with the changes in economic sector. But, has the management accounting information can help the manager in making good decision for their organization? Does management accounting in Malaysia also evolve or changes due to an emerging economic environment? Research papers on Relevance Lost: The rise and Falls of Management Accounting and Evolution of Management Accounting (IFAC, 1998) will be discussed further in this research in order to have better understanding about changes and evolution of management accounting in Malaysia. This research done by reviewing the prior research, articles, thesis and journals. The changes and evolution has been found based on the reviewed of prior research.
Introduction
Research papers on Relevance Lost by Johnson and Kaplan found and gave us the picture of the rise and fall of management accounting throughout the centuries. The authors explored about nineteenth-century cost management system, efficiency, profit and scientific management on 1880 to 1910 until management lost its relevance on 1980s. Furthermore they analysed and explored the new global competition and new systems for process control and product costing and also performance measurement system for the future. In nineteeth- century, companies having a transformation process from two or more process into a single economic activity. In all cases, the information focus on how to improve the process of managing the resources effectively and also do determine the sources of companies profit. In late nineteenth-century, conversion cost system was emerged to systematic management where focused on
References: H. Thomas Johnson, Robert S. Kaplan. (1987), “Relevance Lost: The Rise and Fall of Management Accounting, Harvard Business School Press, Boston, Massachusetts. Rosmawati Mahfar, Normah Omar. (2004), “The current state of Management Accounting practice in selected Malaysian Companies: An empirical evidence”, Universiti Tenaga Nasional, International Business Management Conference 2004. Mahmoud Ezzamel, Keith Hoskin and Richard Macve. (1990), Managing It All By numbers: A review of Johnson & Kaplan’s ‘Relevance Lost’”, Accounting and Business Research, Vol. 20, No. 78, pp. 153-166, 1990. Maliah Sulaiman, Nik Nazli Nik Ahmad and Norhayati Alwi. (2004), “Management Accounting Practices in selected Asian countries: A review of the literature”, International Islamic University Malaysia, Kuala Lumpur. Tuan Zainun Tuanmat, Malom Smith. (2011), “Changes in management accounting practices in Malaysia”, Asian Review of Accounting, Vol. 19 Iss: 3 ppp. 221 – 242. Nitza Geri, Boaz Ronen. (2005), “Relevance lost: the rise and fall of activity- based costing”, Human System Management 24 (2005) 133-144 IOS Press. Martijin van der Steen. (2011), “The emergence and change of management accounting routines”, Accounting, Auditing & Accountability Journal Vol. 24 No. 4, 2011 pp. 502-547.