Management accounting is a field of organizational activity
of a business concern encompassed by different phases of evaluation.
In first stage, to 1950, the focus was on cost determination
and financial control through the use of budgeting and cost accounting
technologies.
In second stage (by 1965), the focus is shifted to the
provision of information and data for management planning and control, through
the use of such technologies as decision analysis and
responsibility
accounting.
In the third stage (by 1985), the focus was diverted to the
reduction of waste in resource used in the business processes, through the use
of process analysis and cost management technologies.
In the fourth stage (by 1995), attention was focused on the
generation or creation of value through the effective use of resources, through
the use of technologies which examine the drivers of customer value,
shareholder value, and organizational innovation.
Like other resources, information (alone or combination with
other resources) may have present strategic significance or may be a core
competency used to create new organizational futures. Strategically management of resources, including
information, took place.
Highlights on Current Evolutionary Stage
- Flattening Organizational hierarchical structures,
- Removing functional specialization,
- Value chains,
- Information technology,
- Non-dependence on remote forms of financial control,
- Continuing investment in information and rationality, and
- Processional specialization
Many people confuse the offices of Controller and
Treasurer. The Financial Executive Institute,
an association of corporate treasurers and Controllers, distinguish their
functions as follows
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Controllership
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Treasurership
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Management Accountants in any concern is concerned with the first
three functions of a controller. We can
conclude that the terms Controller is a broader one than management accountant.
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