Management accounting topic has been the major point of discussion in the past few decades as innumerable researches have been done in this scenario. Over a substantial time span, there has been a major stress on the management accounting topics. Moreover, management accounting topics have undergone immense challenges by various researchers. The Management control system has conducted many studies in the region of Management control system and its features (Bisbe, 2008). Studies indicate the pattern of the design, advantage, and the utility of the management control mechanism gets impacted by the factors such as the task’s ambiguity and environment, structure of the organization and strategies that are competitive in nature. The external scenario that is present in the environment has a direct bearing upon the management accounting topic and hence, studies have been undertaken in this regard (Chapman et. al, 2007).
Established knowledge on management topic has been discussed many a times and various researches have been undertaken in this regard. Going by the definition of established knowledge established can be defined as something that is known on a grand scale and accepted or to accept that without any sort of boundation. The MA topics where established knowledge can be gathered are budgets, products cost, performance measurement and evaluation of the performance (Shield, 2015). Therefore, the areas where the established knowledge has happened is concrete and not to be questioned. The topics mentioned above are exhausted in nature and have a capacity to provide answers that have the power to provide correct decision. Established knowledge means concrete knowledge that has the capacity to mould the decision and therefore, there are several management accounting topics that are studied in the light of established knowledge.
The management control system is not investigated in totality rather examined one or more of the management control that MA information that pertains to practice, control mechanism. Studies have revealed the importance and utilization of the management control by contextual factors like structure of the organization, strategies of competitive nature and the deficiency between the factors that are contextual an impact the performance.
There are two different inquiry of cost accounting based on the MA research. One of it sheds light on the cost estimate accuracy that results from various cost method. Such research gives evidence on the presence of three major assumptions that should be aligned for activity based costing (ABC) so that accurate estimates of cost can be provided. It needs to be noted that activity cost happens not only by volume but even by non volume drivers; a regular linear link exists between cost drivers and the existence of overhead cost (Banker & Johnston, 2007).
On a whole, such replications can become the extension basis that can stretch to recognizing situations contain a particular limit and an application of a theory study. Moreover, this gives rise to the fact that the theory-based ideologies about why the outcomes of a study may not replicate would assist in establishing the knowledge of management accounting. (Lipe & Lambert, 2007) Besides, when the outcomes of the replicated and original studies are not effective in nature, there are various possible causes for the same and evidence on whether such causes can explain ineffective outcomes (Anderson & Dekker, 2014). On a whole, a replication study may not recognize and test every feasible cause for ineffective outcomes but it would be better if the identified replication study can be provided more credibility. This will, in turn offer proper material on the end situation of the theories that can be utilized to predict and explain the effects and causes of management accounting.
Management accounting research produces more established management accounting knowledge of studies that are more comparable are prevalent with effective outcomes (Basu & Park, 2014). However, the number of comparable studies on every issue regarding management accounting is so low that it restricts the evaluation of the consistency of the studies’ outcomes. Hence, it is very important that the effectiveness of the management accounting research outcomes be examined so that it can be ensured that the established management accounting knowledge is dependent on reproducible outcomes that necessitate replications.
The three MA topics that have been researched on a continuous basis are budgets and budgeting, incentives of performance and the measurement of performance. These three forms the crux of the management accounting and hence, be the major topic for the study. The current theme pertains to the three major topics where the budget is involved with compensation involved with the budget, the problem associated with the attainment of the goal, and participative budgeting. The second being the incentives related to performance contingent that is the difference that exists between the goals of the budget and the performance measurement (Bisbe et. al, 2007). The third being the measurement of the performance likes the financial and non-financial that adjusts the role and tracks the impact of the uncontrollable.
The main role of managerial accounting is raise the level of knowledge within an organization and hence, lessen the risk that is linked to the decision making process. The reports are being prepared by the accountants on the production cost of goods, expenses that are associated with the programs of training and the cost related to programs of marketing. Such reports are considered by the managers to evaluate the variance between the planning level and the level of accomplishment that is vouched for or to compare the performance to some other benchmark.
The above mentioned MA has played a vital role in planning, as well as controlling. Firstly, a continuing theme will evaluate the decision-making process of management accounting as stated by Sprinkle and Williamson (2007). The research evaluates how the action of the employees is affected by their action the manner in which the performance is evaluated, measured, as well as rewarded. The main aim of the research is how budgets, performance measures, incentives on performance contingent and responsibility can keep the problem at bay that arises from the selection of adverse nature and danger. Bias in subjective performance can be tagged as a new entry to the research. And it happens through favoritism, rating of performance, risk adjustment and anchoring on objective measurement or performance in priority. The second theme is that of the study of MA is the inter-organizational context as compared to the context that is the main context of intra-organizational of an established MA knowledge (Brown, 2013). This research evaluates how MA will be utilized to select partners, design the contracts, control activities and behavior, thereby valid decisions are taken in this regard. Thirdly, management accounting research by usage of behavioral economics resulted in a theme. Such a theme provides an overall explanation of the causes, as well as effects of MA by associating it with neoclassical economic and physiological theory instead of having a reliance on any of the two theoretical outlooks. This theory has the power to provide evidence that is theoretical based and sheds light on how MA influence the trade off of the individuals that exist between the monetary payoff utility and the non monetary payoff. Such a non monetary payoff can be a direct influence of the preferences of the social psychological disadvantage that arises from the bounded rationality and influence the emotion, as well as mood (Chapman et. al, 2007). The fourth theme stresses on the competitive strategies that affect the MCSs and mainly the balanced scorecard and another level of control. The MA level on balance scorecard mainly evaluates the impact of common and performances that are unique in terms of managerial performance assessment and the manner in which increment can be done on the measurement concept that are unique in nature.
There are various things that can be learned from management accounting research going forward. The replications of studies of management accounting research that pursues a high level of reliability and validity are extremely valuable for the accountants because their outcomes cannot match the outcomes derived in the original or other studies that are replicated. The main reason behind this can be cited due to the fact that they select research method or design that are more familiar to them and suits the hypothesis and reporting of all the factors are not done.
For instance, there are various studies where linear impacts are hypothesized even though various theories of social science anticipate nonlinearities, and then examine their hypothesis on the information wherein the appearance of linearity is more likely to happen. Therefore, a reproduction of the original study might not be possible as the replication might lurk in the attempt when all the factors that are reported are considered leaving apart the conditions that are favouring and are not reported. However, the process of replication proves to be of little advantage as the studies fails to have the features of reliability, validity, and do not provide evidence of consistent theory that resides on the concept of the causes of variables in the management accounting. Furthermore, in order to decide what studies are effective to be replicated, researchers must decide how to replicate them as well. In relation to this, it must be noted that there are two purposes of replications. Firstly, it assists in distinguishing betwixt the bad and good studies and secondly, it can assist in improving and refining the research. This clearly concludes the fact that good studies are the only studies wherein the process of replication must be done.
Conclusion:
The management accounting research needs immense replication studies as it will enhance the production of the established knowledge. Over the time there have been fewer replication as the researchers have a notion that the replications are not rewarded, linked to low status and replications are rejected by the process of journal review. Hence, it needs to be noted that there is a strong resistance when it comes to the publishing of the replications they are vital because the results can be identified that do not replicate (Lambert, 2007). If the replications are common then the researchers are influenced to enhance the validity as well as the reliability of the research that will aid in the establishment of MA knowledge.
References:
Anderson, S, & Dekker, H. (2014). The role of management controls in transforming ?rm boundaries and sustaining hybrid organizational forms. Foundations and Trends in Accounting. 8(2), 75–141.
Banker, R & Johnston, H. (2007). Cost and profit driver research. Oxford, U.K.: Elsevier.
Basu, S & Park, H.U. (2014). Publication Bias in Recent Empirical Accounting Research. Working paper, Temple University
Bisbe, J, Foguet, B & Chenhall, R. (2007). De?ning management accounting constructs: A methodological note on the risks of conceptual misspeci?cation. Accounting, Organizations and Society 32(8), 789–820
Bol, J. (2008). Subjectivity in compensation contracting. Journal of Accounting Literature. 27, 1–24.
Brown, P. (2013). How can we do better?. Accounting Horizons. 27(4), 855–859
Chapman, C, Hopwood, A & Shields, M. (2007). Handbook of Management Accounting Research. Oxford, U.K.: Elsevier
Chenhall, R. (2007). Theorizing contingencies in management control systems research. In Handbook of Management Accounting Research
Lambert, R. (2007). Agency theory and management accounting, In Handbook of Management Accounting. Oxford, U.K.: Elsevie
Lipe, M & Salterio, S. (2000). The balanced scorecard: The judgmental effects of common and unique performance measures. The Accounting Review 75(3), 283–298
Shield, M.D. (2015). Established Management Accounting Knowledge. Journal of Management Accounting research. 27(1), 123-132
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