Behavioral Implications Of Management Accounting Practices

Download or read book Behavioral Implications of Management Accounting Practices written by Kalu Nwonyuku and published by . This book was released on 2015 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: The wide range of implications of the effect of behavioral and organizational theories in management accounting has expanded dramatically, and consistent with the growth in the complexity of organizations, and the need to manage cross-national operations. Following this, behavioral research in management accounting has made meaningful progress over the years. It has demonstrated the need to pay careful and close attention to behavioral issues to promote effective organizational functioning. It is as against this backdrop that this study delves into examining the behavioral and organizational perspectives of management accounting system; reviewing how management accounting practices influence individuals behavior. It highlights the development and use of the right kinds of performance measure characteristics; and pinpoints the need for empowering employees for decision-making. It provides a discussion of the important underlying management accounting philosophies related to human behavior. While x-rays the dimensions of motivation and the use of appropriate incentive plan to reward performance. It does that using descriptive approach of research and secondary data collection method in arriving at the conclusion that behavioral management accounting if thoroughly explored will not only bridge the existing lacuna in the ways and manners management accounting information is generated and reported; it will also restore great confidence to its various users. Hence, a proposal for behavioral welfare maximization model as a preferred objective function of firm is made. Also, the work suggests that management accountants should develop attitudes and strategies that activate and maintain supportive and cooperative relationships with managers and other subordinates that will result to value-synergy effect. Keenly noted is that management accounting as at date does not have its own universal objective function. Hence, the need to have a conceptual framework as a reference upon which universal objective function of management accounting should be developed. The study recommended for more research in this direction.