Strategies in Accounting

Sukov William^*
*Correspondence: Sukov William, Department of Commerce, Chris Institute of Advanced Studies, UK, Email:

Description

Strategic Management Accounting is described as the provision and analysis of management accounting data about a company and its rivals for the purposes of formulating and monitoring a company's strategy. Specifically, multiple earlier studies using the contingency approach can be found in Strategic Management Accounting research, and the contingent variables utilized in these studies are summarized in the 'Selection and operationalization of contingent variables' section. Because simpler methods (e.g., multiple comparisons of means) are not viable instruments for the exploration of causal linkages, consideration was limited to research using advanced statistical methods such as regression analysis or structural modelling. Strategic Management Accounting is described as the provision and analysis of management accounting data about a company and its rivals for the purposes of formulating and monitoring a company's strategy. Specifically, multiple earlier studies using the contingency approach can be found in Strategic Management Accounting research, and the contingent variables utilized in these studies are summarized in the 'Selection and operationalization of contingent variables' section. Because simpler methods (e.g., multiple comparisons of means) are not viable instruments for the exploration of causal linkages, consideration was limited to research using advanced statistical methods such as regression analysis or structural modelling.

Given the relevance of strategic management accounting to effective management decision-making and company performance, there is continued interest in learning more about the subject. It's no surprise, then, that the call for further research into what strategic management accounting methods organizations use and what drives their preference for one technique over another is still a hot topic. While embracing strategic management accounting is a vital avenue for enabling efficient managerial decision-making and improving organizational performance, it is also a time-consuming process. The "production, communication, and use of financial and non-financial information for managerial decision-making and control operations" is defined as "management accounting." One of the most common criticisms about accounting in the 1980s was that accountants did not play a proactive part in the strategic management process.

Management accounting's goal is to help people make better decisions, and it usually entails acquiring and analyzing data, identifying choices, implementing, monitoring, and evaluating them. As a result, the goal of strategic management accounting, also known as strategic positioning accounting, is to embrace a larger strategy that incorporates a strategic management focus into its dynamics to successfully enable management decision-making and organizational performance. There have been numerous attempts to improve that definition and identify core techniques of strategic management accounting. Strategic management accounting is also defined as "the provision and analysis of management accounting data about a business and its competitors, for use in developing and monitoring business strategy." [1-3].

Strategic management accounting, for example, is defined by CIMA as "a management accounting form that emphasizes focused on information relating to the entity's external factors, as well as non-financial information and information generated internally." Organizations can use cost data based on strategic and marketing information to assure effective strategies for obtaining long-term competitive advantage. As a result, businesses must understand the value of integrating cost strategies and conducting several strategic cost studies. Attribute costing, life-cycle costing, quality costing, goal costing, and value chain costing are five main costing approaches identified in the literature. Strategic decision-making is a vital skill for enabling strategic choice as a strategic management accounting tool. Strategic costing, strategic pricing, and brand valuation are all important strategic decision-making alternatives.

Brand value is the third part of the strategic decision-making technique in the strategic management accounting literature. "The brand valuation component involves combining projected brand earnings (an accountingoriented measure) with a multiple derived from the brand's strength on strategic factors such as the nature of the brand's market, its position in that market, and its level of marketing support," according to the brand valuation component. The development of relevant tools that enable a company to analyze and identify its position in a competitive market is part of strategy. As a result, a company chooses appropriate methods to help it compete more effectively against its competitors. To do so efficiently, a company must collect competitive accounting.

The extent to which management accounting is used in organizations to aid strategic decision-making and the strategic management process. The most typical forms of strategic decision-making in which management accounting is thought to play a substantial role. In a strategic framework, the management accounting tools are used. The extent to which the concept of strategic management accounting may be defined within a broader framework of management accounting. Organizations that properly embrace appropriate strategic management accounting methods, according to management accounting discourse, will assure successful managerial decisions, which will ultimately lead to optimizing organizational performance [4,5].

Conflict of Interest

None.

References

1. Boonmak, Supattra. "Accounting information systems." (2001).

Google Scholar, Crossref, Indexed at

2. May, Robert G., and Gary L. Sundem. "Research for accounting policy: an overview." Acc Rev 51 (1976): 747-763.

Google Scholar, Crossref, Indexed at

3. Bonk, Curtis Jay, and G. Stevenson Smith. "Alternative instructional strategies for creative and critical thinking in the accounting curriculum." J Acc Educ 16(1998): 261-293.

Google Scholar, Crossref, Indexed at

4. Giroux, Gary, and David Shields. "Accounting controls and bureaucratic strategies in municipal government." J Acc Public Policy 12 (1993): 239-262.

Google Scholar, Crossref, Indexed at

5. Pritchard, Robert E., George C. Romeo, and Shirley AB Muller. "Integrating reading strategies into the accounting curriculum." Coll J  33 (1999): 77-77.

Google Scholar, Crossref, Indexed at