Evolution of Management Accounting discipline and it's relationship Essay

Evolution of direction Accounting discipline and its relationship with other functions in organisations - Essay ExampleFor example, business organisations are now more concerned with maximising the stakeholders value alternatively of profit maximisation. Besides, they have recognized their responsibilities towards society, community, corporate and environment. Now, they aim to develop their organisational structure and strategies that strive to piece these responsibilities. In this respect, different aspects of focus accounting play very crucial role. It is one of the primary areas that help to meet objectives of corporate governance and strategic formulation process. This paper volition attempt to posit critical epitome of management accounting by pointing out its important aspects. At first, the evolution of management accounting go out be analysed by figuring out its influencing factors. It will also discuss the historical background of the present management accounting s ystem. ... This section will try to develop certain recommendations for bringing further breeding in modern management accounting. In order to support the critical analysis and discussions, proper evidences will be provided. Finally, the entire discussion, analysis and major outcomes will be summed up in conclusion. Evolution of solicitude Accounting Before presenting the evolution and historical development of managerial accounting, it is necessary to understand the term management accounting because this term includes two major concepts of business organisational activities. Robert S, Kaplan identified two major areas of management accounting and these are cost accounting and management control (Kaplan, 1984). These two areas are very vital for organisational success. Management accounting process is helpful in executing cost accounting and management controlling activities. R. N. Anthony delimitate that management accounting is concerned with accounting information that is use ful to management (Banjerjee, 2005, p.2). T. G. Rose elaborated that management accounting is meant to adopt and analyse the accounting information for better diagnosis and explanation for assisting managements in termination making process (Palanivelu, 2007, p.289). Many critics and scholar observes the cost accounting, financial accounting and management accounting as different areas of finance. However, this can be interpreted as the traditional concept of management accounting. This concept was in trend prior to 1980s before the modernisation of cost accounting and management control. Thomas Johnson traced that US corporations started to focus of management accounting during 1850-1925 as this field was very important for the growth and development