Managememt Accounting-A Value Proposition

Abstract

No system can be perfect from start, it needs time to mature. Initially lot of resistance might happen, but then when benefits starts coming, there will be appreciation. Since the system is intended as a continuous process, an overall organizational cultural change, sooner or later, is a necessity. Management Accounting has to continually evolve in facilitating the Value Management process. Cost function is important; equally or perhaps more important, is the Value function; where value is involved, effort is involved, reward will follow. In case of a continuous improvement initiative of an entity, the Management Accountant is better placed to have a significant role in actively involving in the process from start, in defining, measuring, analyzing, documenting, training and controlling as well as to act as a facilitator. Even in the absence of a movement in the company the Management Accountant of the company can initiate a process in co-ordination with the process owners and management.