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T he A lignment O f M anagement A ccounting W ith M anufacturing P riorities : A S trategic P erspective

T he A lignment O f M anagement A ccounting W ith M anufacturing P riorities : A S trategic P... This paper proposes that traditional cost‐based management accounting systems (MAS) are inappropriate for controlling a manufacturing organisation's performance in cases where non‐cost factors are important aspects of the firm's competitive strategy. Manufacturing organisations in Australia are under increasing pressure to increase their competitiveness. This can be achieved by giving the manufacturing function strategic status in the organisation and by designing the MAS to support those strategies directly. The MAS should measure operational performance, control investment and report in terms of the factors which determine the organisation's competitive advantage, whether they be high product quality, manufacturing flexibility, low cost or other influences. The paper provides two applications of the concept of strategy‐driven management systems: capital investment evaluation systems, and operational performance measurement and reporting systems. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Australian Accounting Review Wiley

T he A lignment O f M anagement A ccounting W ith M anufacturing P riorities : A S trategic P erspective

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Publisher
Wiley
Copyright
© 1991 CPA Australia
ISSN
1035-6908
eISSN
1835-2561
DOI
10.1111/j.1835-2561.1991.tb00123.x
Publisher site
See Article on Publisher Site

Abstract

This paper proposes that traditional cost‐based management accounting systems (MAS) are inappropriate for controlling a manufacturing organisation's performance in cases where non‐cost factors are important aspects of the firm's competitive strategy. Manufacturing organisations in Australia are under increasing pressure to increase their competitiveness. This can be achieved by giving the manufacturing function strategic status in the organisation and by designing the MAS to support those strategies directly. The MAS should measure operational performance, control investment and report in terms of the factors which determine the organisation's competitive advantage, whether they be high product quality, manufacturing flexibility, low cost or other influences. The paper provides two applications of the concept of strategy‐driven management systems: capital investment evaluation systems, and operational performance measurement and reporting systems.

Journal

Australian Accounting Review – Wiley

Published: Jun 1, 1991

References

  • “Vital Truths about Managing your Costs”
    Ames, Ames; Hlavacek, Hlavacek
  • “How Hewlett‐Packard Gets Numbers It Can Trust”
    Berlant, Berlant; Browning, Browning; Foster, Foster
  • “Breakthrough Manufacturing”
    Haas, Haas
  • Principles of Quality Costs
    Hagan, Hagan
  • “Another Hidden Edge‐Japanese Management Accounting”
    Hiromoto, Hiromoto
  • “Activity Based Information: A Blueprint for World‐Class Management Accounting”
    Johnson, Johnson
  • “Measuring Manufacturing Performance: A New Challenge for Managerial Accounting Research”
    Kaplan, Kaplan
  • “Yesterday's Accounting Undermines Production”
    Kaplan, Kaplan
  • “Japanese Management Accounting: its contribution to the Japanese economic miracle”
    Morgan, Morgan; Weerakoon, Weerakoon
  • “Strategic Management Accounting”
    Simmonds, Simmonds
  • “The Productivity Paradox”
    Skinner, Skinner