ent
accounting is experiencing a
punctuated shift toward more
progressive methods and practices.
The cause is reaction
to (1) business marketing and
sales techniques that are increasingly
customer centric and
require predictive planning and
(2) operational manager needs to
improve productivity by removing
waste, shortening cycle times,
and increasing efficiency and
effectiveness. What are the major
trends involved? I covered the
first three trends in Part 1 and
will cover the other four in this
article.
Last month in Part 1 of this article, I enjoyed listing some of the
management fads that didn’t last, took you on a journey through the
six eras of management accounting, and introduced three of the
seven major trends in management accounting. Before we plunge
into the last four, let’s take a quick look again at all seven:
1. Expansion from product to channel and customer profitability
analysis,
2. Management accounting’s expanding role with enterprise performance
management (EPM),
3. The shift to predictive accounting,
4. Business analytics embedded in EPM methods,
5. Coexisting and improved management accounting methods,
6. Managing information technology and shared services as a
business, and
7. The need for better skills and competency with behavioral cost
management.
Now on with the next group.
By Gary Cokins, CPIM