By Greg N. Gregoriou, Nigel Finch
Administration accounting has gone through major evolution relocating clear of inflexible budgeting courses and static output measures to finished techniques of price id and measurement.The e-book presents case experiences, observation and research from foreign specialists in administration accounting around the modern concentration parts.
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Additional info for Best Practices in Management Accounting
This lens is potentially useful in examining dynamic concepts of control that encompass relations of reciprocity between accounting, the inter-organisational relationship and the (external and internal) organisational environments of relationship partners. In particular, there is evidence in favour of a Complex Adaptive System (CAS) perspective (see Schneider and Somers, 2006) reflecting the degree to which Complexity Theory applies to the inter-organisational context. , 2009). It is consistent with Chenhall (2003) as a means of addressing concerns about model under-specification, a common criticism of contingency-based approaches.
The finance department is responsible for coordinating the budgeting process and preparing a complete consolidated budget. Senior managers are responsible for reviewing their SBU managers’ budgets. Lastly, executive management is responsible for approving a Consolidated Corporate Budget that is consistent with APCO’s strategic plan and goals. Clearly, the language in the memos and discussions with managers indicates that the budgeting process at APCO is intended to be bottom-up and participatory in nature.
What elements of APCO’s competitive environment might have influenced top management to act in such a way? Discussions with senior management revealed that they claimed that were not fully aware of the impact of their actions. That is, senior management felt that it did not act in a duplicitous or insincere fashion. Rather, senior management asserted that they were ignorant of the effects of actions on employee perceptions and commitment. 5 Conclusions Regardless of what point along the continuum top management chooses, the results of this chapter suggest that management’s language should reflect the delineation of decision rights.
Best Practices in Management Accounting by Greg N. Gregoriou, Nigel Finch