Focus on organisational issues and are financial

This preview shows page 33 - 35 out of 416 pages.

focus on organisational issues and are financial oriented; whereas, advanced MAPs whichfocus on financial and non-financial information tend to be more strategically oriented(Angelakiset al., 2010). Chenhall and Langfield-Smith (1998) indicate that“Traditional MAPs, such as cost variance analysis and profit-based performancemeasures, focus on concerns internal to the organisation and are financially-oriented.In contrast, more contemporary MAPs combine both financial and non-financialinformation and take an explicit strategic focus. This can be seen, for example, in thedesign of activity-based costing, contemporary performance measurement systems andbenchmarking techniques.”MAPs have also been classified by their functions. For instance, Chenhall and Langfield-Smith (1998) and Angelakiset al.(2010) who investigate the adoption of and benefitsreceived from MAPs in Australia and Greece, respectively, have classified MAPs into fivecategories: Long-term Planning (LTP), Budgeting systems (B), Product Costing (PC),Performance Evaluation (PE) and Decision Support Systems (DSS). Abdel-Kader and Luther(2008) divide MAPs into five groups, including costing system, B, PE, information fordecision making and strategic analysis. Williams and Seaman (2001) who studied MAchanges in Canadian manufacturing firms classify the 23 MA control systems into fivecomponents of planning, controlling, costing, directing and decision making.MAPs could be classified and called by several names depending on measurements andfunctions. Example of prior studies which classified MAPs as conventional and advancedMAPs or as groups of functions: LTP, B, PC, PE and DSS are presented in appendix A.2.3 Management Accounting ChangesMA has seen a dramatic change over the last two decades (Scapens and Bromwich, 2010). Agap between MA theory as shown in textbooks and MA in practice has emerged and drivenstudies of MAP variations across the world (McLellan, 2014; Robalo, 2014).
18The following sub-sections address existing literature on MAPs in developed and developingcountries.2.3.1 Management Accounting Practices in Developed CountriesThe tendency of MAPs in existing literature in developed countriesis to carryout applicationsin advanced MAPs such as ABC and BSCs. However, conventional MAPs prevail in some ofdeveloped countries.ABC as an alternative to methods of absorption and variable costing has been reported asrevealing a significant variation in the usage in a number ofdifferenttypes of decision(Brierley et al.,2001). CIMA members predicted on the basis of an empirical study by(Burns and Yazdifar,2001), ABC is thought as not an importantMAtechnique, but predictedto be given greater emphasis in the future. However, existing studies were doubtful about theABC diffusion. In the UK,Bright et al. (1992) revealed that the most widely planned andactual use ofadvancedMAPs was ABC at 60% of 677forlarge UK manufacturingcompanies.Innes and Mitchell (1995) andInnes et al. (2000) conducted a survey of ABC in1994 and replicated the studyagain

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 416 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
Prof. Fernandez
Tags

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture