The Review of Management Accounting: Niu Shuo, Du Jian
The Review of Management Accounting: Niu Shuo, Du Jian
The Review of Management Accounting: Niu Shuo, Du Jian
Abstract. Recently management accounting has become a popular topic in the field of accounting,
this article traces back to the origin of management accounting and illustrates the history of
management accounting. Four stages of managerial accounting’s evolution defined by The
International Federation of Accountants (IFAC) are also explained. After describing the history of
management accounting, various definitions are given by different authoritative organization such
as American Accounting Association (AAA), the Institute of Management Accountants (IMA) and
so on. Exploring the scope of management accounting can deepen the comprehension about the
definition. Consequently, the large scope emphasizes the important status of management
accounting. However, there is more area about management accounting can be researched and
discussed. In the near future, management accounting will develop rapidly and prosperously with
no doubt.
Introduction
It is widely known that accounting is a kind of subject, which can record the corporate’s
economic activity and reflect the financial condition. However, with the scientific and technological
ongoing progress and globalization, companies grow bigger and face greater competition. Managers
who steer in a large organization cannot make important decisions without accounting information
[1]. Therefore, using accounting information to make managerial decision in an organization, which
is called management accounting, can add competitiveness and make full use of sources. Getting
well known of one discipline begins with its history.
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