Evolution of Management Accounting Term Paper Example | Topics and Well Written Essays - 2750 words

Evolution of Management Accounting - Term Paper Example Since then, there has been gradual development and implementation of changes in managerial approaches to match the new business requirements (Riahi-Belkaoui, 54). However, the business environment has been undergoing tremendous developments both in nature and scope over the last six decades (Bhimani, 76). This is due to emerging innovations and increase in operations as a result of globalization. Therefore, each business should be aware of its goals and develop strategies for accounting to achieve its goals of production more effectively and efficiently. As a result of 1980s innovations, there is an increase in competition for the businesses which requires a change in the way businesses use to make their financial reports and regulate their operations (Kaplan, 399). Due to poor stock market performances of 1920s, business directors started focusing on creating financial report as a financial reporting requirement at that time hence limiting the growth of management accounting strateg ies. As a result of emerging competitions among the world nations, Automobile manufactures of Japan forced Americans and European nations to establish broader view of business performance based on value and service as opposed to assessment based on efficiency of output (Kaplan, 394). The business performance has been undergoing a lot of changes aimed at improving their operations and increasing the managerial efficiency. The ancient strategies are inadequate to match the modern requirement for effective business operations (Riahi-Belkaoui123). This is because in the modern period business are focusing on cost reduction and profit maximization through technology and advancement. There is no room for errors in the current period since a slight defect could make... As a result of 1980s innovations, there is an increase in competition for the businesses which require a change in the way businesses use to make their financial reports and regulate their operations (Kaplan, 399). Due to poor stock market performances of the 1920s, business directors started focusing on creating the financial report as a financial reporting requirement at that time hence limiting the growth of management accounting strategies. As a result of emerging competitions among the world nations, Automobile manufacturers of Japan forced Americans and European nations to establish a broader view of business performance based on value and service as opposed to assessment based on an efficiency of output. The business performance has been undergoing a lot of changes aimed at improving their operations and increasing the managerial efficiency. The ancient strategies are inadequate to match the modern requirement for effective business operations. This is because in the modern pe riod business is focusing on cost reduction and profit maximization through technology and advancement. There is no room for errors in the current period since a slight defect could make the business to lose its entire operations to the competitors. Furthermore, businesses are focusing on minimization of the expenses through reduction of inventory. Therefore, businesses have to develop production strategies to ensure they meet daily client’s needs without surplus or deficit as a result of a deficiency of inputs.