AC 303 Lecture 4 Theories of Management Accounting and Control Systems

AC 303 Lecture 4 Theories of Management Accounting and Control Systems

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Dr. Owolabi Bakre AC 303 ADVANCED MANAGEMENT  ACCOUNTING Theories of Management Accounting  and Control Systems
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Dr. Owolabi Bakre Introduction Management Accounting researchers use both  traditional and emergent theories to study management  accounting and control in organisations.  Traditional and emergent theories offer differing insights  into organisational phenomena and suffer from different  shortcomings. Nevertheless, these two approaches to management  accounting and control research lead to increase in  knowledge and understanding about a phenomenon or  phenomena.
Background image of page 2
3 Dr. Owolabi Bakre Introduction (Continued) A major problem confronting a new researcher is the  choice of appropriate theory that could act as the ‘Map’  and ‘Lens’ for their investigations. Theory is seen as the interrelations of substantive  problems, sources of evidence and of larger  assumptions about society, history and the purposes of  scholarship (Skocpol, 1984, p. x). As a result, three theoretical perspectives have emerged.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Dr. Owolabi Bakre Theoretical Perspectives of Management Accounting  and Control Systems Positivism Perspectives Interpretive Perspectives Critical Perspectives
Background image of page 4
5 Dr. Owolabi Bakre Positivism - Normative Perspective Normative models mainly describe what ought to be done by  practitioners. These were based on neo-classical economic assumptions: Decision makers are profit maximizers All the information required is available at no cost and no  uncertainty                                                  Arrive at a profit maximizing solution using the principles  of marginal Analysis The decision maker is either the owner or shares the  owner’s goals Individual decision maker can be isolated from other  decision-makers within the organisation                                                         
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Dr. Owolabi Bakre Normative Perspective (Continued) To relax some of the above assumptions, researchers  developed more sophisticated analytical models of  management accounting and control within the framework of  neo-classical economics The gap between theory and practice has widened. The recognition of this gap affected management accounting  research in two ways: Firstly, there was increasing interest in studies that  explored the nature of management accounting  practices. More research towards positive accounting  research i.e. looking for explanation to observe practice  and; Secondly, changes that took place in the theory of  management accounting and control research 
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 28

AC 303 Lecture 4 Theories of Management Accounting and Control Systems

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online