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The growing importance of cost management is significantly changing the practice of management accounting and that the challenge for management accountants lies in choosing their future role. Those who do not develop the right skill set will either have to develop expertise to allow them to transfer to functional areas of the firm or risk finding themselves at a career dead-end.
As competition becomes more intense, firms are forced to learn to be more proactive in the way they manage costs. With the emergence of the lean enterprise and global competition, firms face ever-increasing levels of competition. For many of these firms, survival is dependent upon their abilities to develop sophisticated cost management systems that create intense pressures across the entire value chain to reduce costs.
The main purpose of this assignment is to encourage and facilitate students to explore and gain a better understanding on the weaknesses of the Traditional Management Accounting Practice and the needs to change to Modern Management Accounting Practice. Students are required to write a report on “The Importance of Modern Management Accounting Practice.”
You are required to:
A. Form a group
1. Group size: between 5 to 6 students.
2. This is a group assignment. You are required to work together as a group to complete the assignment.
3. Each group is expected to submit ONE completed assignment as a group, NOT on an individual basis.
B. Your assignment should discuss on the following issues.
1. Highlight the criticism of Traditional Management Accounting Practice.
2. Introduce and evaluate the mechanism of Modern Management Accounting Practice (Choose any 4) :-
• ERP system
• Activity-based costing and budgeting (ABC & ABB)
• Just-in-time (JIT)
• Total Quality Management (TQM)
• Balanced Scorecard
• Transfer Pricing
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3. Explain why there is a need to change from Traditional Management Accounting Practice to Modern Management Accounting Practice.
4. Give an example of an organization that has successfully implemented the Modern Management Accounting Practice and how it helps to maintain the company’s competitive advantages.
1. Your discussion must be specific and precise. General write-up is NOT acceptable.
2. You can be creative and use your imagination where necessary. Good marks will be rewarded for a good discussion and justification.
3. You are allowed to present the report in any structure by making an attempt to relate all the contents systematically and logically.
4. The project can be completely based on diligent observation, some form of research, reading, and being creative and logical imagination.
5. You are allowed to present in diagrams, charts, or other forms as you deemed fit. Appendices are also allowed where necessary.
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