The Contingency Theory Of Management Accounting

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name of its journal from Cost Accounting to Management Accounting in 1965 and its own name to the Institute of Cost and Management Accounting in 1972. In 1986 it received its royal charter and became The Chartered Institute of Management Accountants (CIMA) (Allot, 2000). In the United States the National Association of Cost Accountants changed its name to the National Association of Accountants in 1958 (Scapens, 1991, p. 9). This organization became the Institute of Management Accountants (IMA) in 1991.
Overall it can be seen that after nineteenth century the focus changed from cost accounting to an emphasis on the provision of information that was appropriate to the needs of managers.
2.3 Definition of management accounting
Scapens (1991)
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Though management accountant is not taking any decision but provides data which is helpful to management in decision making. Unlike financial accounting, management accounting deals with the future. It helps in planning the future – because decisions are always taken for the future course of action. Many theories have been developed to management accounting, among them which this study seeks to address is the contingency …show more content…
Donald (2001, p.7) defined “Contingency” as “any variable that moderates the effect of organizational characteristics of organizational performance.”
According to (Sine & Krisch, 2006) management accounting practices differ in organizations as a result of the uniqueness in their operations and environment. Technology has a very significant influence in the choice of a management accounting practice in a firm for instance (Szchta, 2002) found that technology had a significant influence in the adoption of modern management accounting techniques in Polish firms, whereas (AL-Omiri & Drury, 2007) found that more sophisticated cost systems were positively associated with the importance of cost information, size, the intensity of competition and the financial sector. Since firms compete on different fronts like, quality, price, reliability on delivery, and customer service there comes a challenge to management accountants to innovate and adapt new methods of management accounting in order to be more relevant on optimal competition fronts. Failure by management accountants to be more adaptive to new effective techniques shall result in other

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