New Trends and Concepts in Managerial Accounting

New Trends and Concepts in Managerial Accounting

The following innovations in the field of strategy and operations management have influenced managerial accounting system recently. The analytical tools and techniques of managerial accounting have always been useful, and their relevance and importance continue to increase. This is so because of changes in the business environment. 

Customer Orientation

Customers always expect that suppliers will offer them the right service or product at the right time and the right price. This implies that companies accept the notion of customer orientation, which means that employees understand the changing needs and wants of their customers and align their management and operating practices accordingly.

Global Economy

Our global economy expands competitive boundaries and provides customers more choices. The global economy also produces changes in business activities.

E-Commerce

People have become increasingly interconnected via smart phones, text messaging, and other electronic applications. Consumers thus expect and demand to be able to buy item electronically, whenever and wherever they want. Many businesses have enhanced their Websites to allow for online transactions.

Service Economy

Businesses that provide services, such as telecommunications and health care, constitute an ever-growing part of our economy. Many companies in United States have responded by adopting the lean business model, whose goal is to eliminate waste while “satisfying the customer” and “providing a positive return” to the company (Kerby & Romine, 2012).

Lean Thinking

Lean thinking methods are inclusive of all employees and involve a major change in the embedded attitudes of the individuals that make up the organizations. The principle is about simple and cost-effective to create a little work has been carried out to determine its applicability to high-value, low-volume complex products. This has led companies to adopt practices such as total quality management (TQM) and just-in-time (JIT) manufacturing. The philosophy underlying both practices is continuous improvement; the difference is in the focus. TQM focuses on quality improvement and applies this standard to all aspects of business activities whether JIT is a system that acquires inventory and produces only when needed (Harmon, 2011).

Value Chain

The value chain refers to the series of activities that add value to a company’s products or services. Companies can use lean practices to increase efficiency and profits

In conclusion, managerial accounting techniques and practices have changed in response to the challenges of global competition, international markets, technological advances, and complexity of business. Considering new trends and concepts suggest  a changing role for the managerial accounting. The future managerial accounting will need to be knowledgeable of production, quality control, marketing, and management strategy.

References :

Harmon C. 2011. Managerial Accounting : Tools for business decision making 5^thedition. Univeristy of California, Santa Barbara.

Kerby D, Romine J. What’s ahead for Management Accountants?.New accountant. Retrived from : http://www.newaccountantusa.com/newsfeat/ip/ip_whatsahead.html