Organisational competitiveness and the role of management accounting techniques in decision making

Abstract

Decisions about costs in organizations often arise from a detailed knowledge of both the firm’s cost structure and management’s competitive strategy. Management accounting helps identify the costs and benefits of different planning decisions, thus allowing managers to make choices that increase organizational value. There have been many developments in both management accounting research and practice on the use of management accounting tools and models by managers to achieve organizational competitiveness. Hence, the paper seeks to review the current state of knowledge on management accounting tools and models (i.e emergent techniques) relevant in the decision making process. In summary, the paper highlights management accounting information as a resource for decision making. Consequently, it advocates that managers adopt management accounting tools to enhance organizational competitiveness.