Management Accounting in Support of Strategy

CHAPTER 1

Management Accounting and the Strategic Management Framework

What Is Management Accounting?

Traditionally management accounting has been distinguished from financial accounting by its focus on providing information for management activities. Definitions of management accounting in the 1970s encompassed activities such as providing support for managerial decision making, allocating resources, monitoring, and evaluating performance. Techniques such as budgeting and variance analysis to aid planning and control were commonplace, as were techniques such as investment appraisal and cost volume profit analysis. These techniques are still utilized today yet many of the traditional management accounting techniques and management information ...