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1 – 10 of 23Lino Cinquini and Falconer Mitchell
This paper addresses an important but neglected issue – the nature of and evidence for success in management accounting. The case of activity‐based costing/management (ABC/M) is…
Abstract
This paper addresses an important but neglected issue – the nature of and evidence for success in management accounting. The case of activity‐based costing/management (ABC/M) is used to explore how researchers have gathered evidence of this technique’s success. A variety of approaches have been adopted and all have shortcomings. The problems of obtaining reliable evidence of success suggest that a profile of evidence is likely to be the most appropriate basis on which to make success judgements about management accounting. Further research on this evidential profile is called for.
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This chapter applies the Consortium for Advanced Management, International (CAM-I) Activity-Based Cost Management (ABC/M) tool to paratransit. The intent is to enable agencies…
Abstract
Purpose
This chapter applies the Consortium for Advanced Management, International (CAM-I) Activity-Based Cost Management (ABC/M) tool to paratransit. The intent is to enable agencies sponsoring rides to save money through sharing rides and vehicle-time.
Design/methodology/approach
Several paratransit cost-allocation models from Transit Cooperative Research Program (TCRP) and other sources are reviewed and one is adapted to the ABC/M methodology, based upon the author’s previous work proportionately allocating ride time among sponsoring agencies at a consolidated human service transportation agency and the price sheets used in contracted operations to minimize financial risk.
Findings
Through application of the principles of ABC/M, paratransit providers can properly allocate costs, determine the costs of providing proposed new services, plan for future vehicle acquisitions, and motivate their customers to tailor their transportation needs in a manner that will save them money and boost efficiency.
Research limitations/implications
University-based transportation studies programs may be motivated to apply these strategies to urban and rural paratransit providers that serve several customer agencies.
Practical implications
If agencies sponsoring paratransit rides understand that funds can purchase more rides during off-peak hours or if rides are shared with clients of other agencies, then paratransit resources can be used more efficiently and to the benefit of more individuals.
Social implications
By enabling the provision of more rides, a greater number of riders will be enabled to reach necessary services and participate in community life.
Originality/value
This is the first application of the ABC/M methodology to paratransit (and transit) and possibly to social services.
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Md Mamunur Rashid, Md Mohobbot Ali and Dewan Mahboob Hossain
The purpose of this study is to present a review of the literature on strategic management accounting (SMA). Specifically, it focuses on the trend of SMA research since the…
Abstract
Purpose
The purpose of this study is to present a review of the literature on strategic management accounting (SMA). Specifically, it focuses on the trend of SMA research since the publication of Langfield-Smith’s (2008) influential paper “Strategic management accounting: how far have we come in 25 years?” which raised the question of relevance of further SMA research.
Design/methodology/approach
The study reviewed articles published on SMA as a whole (comprising a set of advanced management accounting techniques) and its specific techniques for the period of 2008 to 2019 in 23 leading accounting journals.
Findings
The review finds that research on SMA has focused on the contingencies influencing the adoption and implementation of SMA techniques and the effects of such adoption on various aspects of firm and employee performance. The renovation and modification of existing practices in attempt to match with the organizational context has also attracted the attention of several SMA scholars. In addition, a noticeable shift to the strategic management theory and case study method was observed during the study period.
Originality/value
The study focuses on the trend of SMA research in an attempt to revisit the relevance of further research in this arena, particularly as a response to the criticism raised by Langfield-Smith (2008).
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Sophia Su, Kevin Baird and Nuraddeen Abubakar Nuhu
This study examines the association between the use of strategic management accounting (SMA) practices and competitive advantage and the moderating role of four aspects of…
Abstract
This study examines the association between the use of strategic management accounting (SMA) practices and competitive advantage and the moderating role of four aspects of organisational culture – teamwork orientation, outcome orientation, innovation orientation and attention to detail orientation – on this association. Online survey data were collected from 408 accountants in Australian business organisations, and structural equation modelling (SEM) was used to analyse the data. The results indicate a positive association between the use of SMA practices and competitive advantage with such an association positively moderated by one cultural dimension, teamwork orientation. Specifically, the findings indicate that the positive effect of SMA practices on competitive advantage is dependent upon the fit between the use of SMA practices and teamwork orientation with more (less) teamwork-oriented organisations exhibiting a stronger (weaker) association between the use of SMA practices and competitive advantage.
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Bernard Pierce and Richard Brown
The study was designed to examine specific issues relating to the usage and perceived success of activity‐based and traditional costing systems. Data were collected from management…
Abstract
The study was designed to examine specific issues relating to the usage and perceived success of activity‐based and traditional costing systems. Data were collected from management accountants operating at senior management level in large companies in manufacturing, financial services and other non‐manufacturing sectors.
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Supplier involvement in cost reduction efforts has been concentrated mainly in the product development phase of the life cycle of the product. Often this concentration on the…
Abstract
Purpose
Supplier involvement in cost reduction efforts has been concentrated mainly in the product development phase of the life cycle of the product. Often this concentration on the early phases of the product life cycle is defended with referral to the 80/20 rule that says that 80 per cent of the manufacturing costs are determined or committed during product design and development. The purpose of this paper is to look for empirical evidence that supports this rule and discuss the limited literature on joint buyer/supplier cost reduction programmes beyond the product development stage of the product life cycle.
Design/methodology/approach
An extensive literature survey on both the cost commitment rule and collaborative cost reduction programmes beyond the product development stage was conducted.
Findings
It was found that empirical evidence in the literature for the 80/20 rule on cost commitment in product design is only anecdotal. Even more surprisingly, compared to the literature on cost reduction in design phases, the literature on cost reduction efforts in later stages of the product life cycle is rather limited and usually ignores possibilities for supplier/buyer collaboration.
Research limitations/implications
Further empirical research (suggestions provided) should assess whether the identified lack of evidence is due to a gap in the empirical literature or to lower degrees of cost commitment and attention to cost efforts beyond product design indeed existing in practice.
Practical implications
This paper calls practitioners to revisit the cost commitment rule and check its existence in their specific contexts. As a result of this exercise, practitioners may want to consider implementing some of the techniques reviewed in the paper that can assist in collaborative cost reduction beyond the product development stage.
Originality/value
Given the amount of money involved, the general applicability of the cost reduction techniques to various industries and relationships with suppliers, the opportunities for huge savings and the fact that most firms usually have many products and/or technologies at maturity stage, my research makes an important contribution by identifying both a lack of empirical evidence in the literature on the notion that 80 per cent of the costs are committed in the design phase and the limited attention given in the literature to supplier/buyer cost reduction programmes in further stages of the product life cycle.
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Kevin Baird, Sophia Xia Su and Amy Tung
This study uses the survey method to examine the associations between the three levels of environmental activity management (EAM) (environmental activity analysis, environmental…
Abstract
Purpose
This study uses the survey method to examine the associations between the three levels of environmental activity management (EAM) (environmental activity analysis, environmental activity cost analysis and environmental activity based costing) with environmental management systems (EMSs), and assesses the effectiveness of these EAM practices and EMSs by examining their associations with both environmental and financial performance. While this study is unable to assert causality, the findings provide an important insight into the need to integrate EMSs and EMA practices, specifically EAM. In addition, the findings provide an initial insight into the relationship between the extent of use of these practices and organisational performance (environmental and financial).
Design/methodology/approach
Data was collected using a mail survey of 659 manufacturing organisations identified from the Onesource on-line database. A total of 140 completed questionnaires were returned (21.2%), 72 (10.9%) following the initial mail-out, and a further 68 (10.3%) from the follow-up mail-out.
Findings
In respect to the association between EAM and EMSs, this study provides empirical evidence to support the integration of EAM practices with the use of EMSs, suggesting the relationships between the two is bi-directional. In respect to the association between EMSs with environmental and financial performance, while the extent of use of EMSs is not associated with financial performance, there is strong evidence supporting the positive association between EMSs with environmental performance. Further, while there are minimal results regarding the direct association between the three EAM practices and environmental performance, a cyclical relationship between EAM and financial performance is identified.
Originality/value
This study contributes to the literature by providing an empirical insight into the relationship between the extent of adoption of EMSs and the use of EMA. The focus on the relationship between EMSs and EMA is pertinent owing to the sparse research on EMA practices and the “importance of using such [EAM] practices and integrating them within the organisation rather than using them on an ad hoc basis” (Phan et al., 2018, p. 657). This study also contributes to the literature by examining the effectiveness of both practices in respect to their association with environmental and financial performance.
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This paper is focused on studying homogenous structure for tangible and intangible measurement systems. The aim is (1) to develop a conceptual homegenous structure for the…
Abstract
This paper is focused on studying homogenous structure for tangible and intangible measurement systems. The aim is (1) to develop a conceptual homegenous structure for the combined tangible and intangible measurement and management system, (2) to present the connection between tangible and intangible measurement and management systems (3) to discuss the benefit of a developed system. The literature on intellectual capital (IC) advocates the use of an IC measurement system and stresses the importance of strategic planning and development. This paper describes how the structure of BSC can beutilized for both tangible and intangible measurement systems. The paper also illustrates the link between tangible and intangible systems. From the prior research a conceptual framework for the BSC‐based IC with causalities between perspectives is presented in the paper and used in the developed system. The paper is a conceptual analysis and provides a new innovative model for empirical testing.
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Timo Hyvönen, Janne Järvinen and Jukka Pellinen
This paper aims to analyse how cost accounting knowledge is mediated in a large multinational organisation employing a company‐wide enterprise resource planning system and…
Abstract
Purpose
This paper aims to analyse how cost accounting knowledge is mediated in a large multinational organisation employing a company‐wide enterprise resource planning system and off‐the‐shelf activity based costing software to create a uniform profitability management system within the organisation.
Design/methodology/approach
The case analysis is informed by the theoretical notions of dis‐and re‐embedding of expert knowledge, expert systems and standards.
Findings
The results indicate that standardised cost accounting software packages may be useful not only because of their superior data processing properties and technical efficiency, but also because of their usability in overcoming resistance to change. It is suggested that software packages and some degrees of freedom in the implementation process may actually enhance actors' “blind” commitment to the system and reduce resistance to the new system.
Originality/value
It is of interest to researchers and practitioners alike how ready‐made software packages may be successfully used in implementing the changes needed in the management accounting systems of large organisations. It is also particularly interesting to find reasons why software packages seem to be so useful in driving these changes.
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