Top 7 Trends in Management Accounting
Author: Gary Cokins
||2 hours for CPAs
Top Trends in Management Accounting Ultimately costing principles, such as the causality principle, must be converted into practical practices with supporting tools. This presentation examines how cost modeling has evolved over the last century. It will describe the trends and obstacles that have helped or delayed developments. These evolving areas and trends include:
• The expansion from product costing to include channel and customer profitability reporting and analysis.
• The integration of managerial accounting with other enterprise and corporate performance management (EPM/CPM) methods (e.g., the balanced scorecard, incentive compensation, risk management, supply chain management)
• The shift from historical reporting to predictive accounting (e.g., marginal / incremental costing; rolling financial forecasts, performance-based and driverbased budgeting, customer lifetime value [CLV] )
Publication Date: July 2015
Any Practitioners looking expand their knowledge in accounting and its trends
- The expansion from product to channel and customer profitability analysis
- Integration of MA with EPM / CPM
- The shift from historic to predictive accounting
- Imbedding analytics into MA and EPM
- Debates over costing methods (e.g., lean, TDABC)
- Managing IT as a business (chargebacks, SLAs)
- Recognition that "change management" is critica
- Recognize how trends in management accounting practices have expanded
accountants from "bean counters" to "bean growers."
- Identify and differentiate strategic KPIs in a balanced scorecard, and operational
performance indicators (PIs) in dashboards.
- Apply "predictive accounting" for driver-based budgets / rolling financial
forecasts, what-if analysis, and outsourcing decisions.
- Imbed statistics and analytics into product, channel, and customer profitability
- Overcome implementation barriers.
NASBA Field of Study
Accounting (2 hours)