Open Journal Systems

The Role of Management Accounting in Adding Value to Organisations

Tonglei Zhang(Zhonghuan Information Collage, Tianjin University of Technology)


The rapid development of digital world has provided modern organisations with challenges and opportunities at the same time. Especially, the use of advanced technology such as internet well improves transparency of many organisations. However, this also brings volatility and uncertainty to an organisation’s business environment, thereby leading to a more complex and time-consuming decision-making process. To solve this problem, two management accounting techniques, ABC System and BSC, have accordingly been adopted by many managers. In this article, the purpose is to briefly discuss some of the challenges faced by organisations; and then, the two initiative management methods are well explained individually with reference to appropriate examples.


Activity based cost system; Balanced scorecard; Management accounting

Full Text:



BBC News, 2020. Machines to “Do Half of All Work Tasks by 2025”. (Online) Available at: (Accessed 24 February 2021).

CGMA, 2019. Re-Inventing Finance for a Digital World. (Online) Available at: (Accessed 24 February 2021).

Dwivedi, Y.K., Ismagilova, E., Hughes, D.L., et al., 2020. Setting the Future of Digital and Social Media Marketing Research: Perspectives and Research Propositions. International Journal of Information Management. pp.102168.

Mori, N., 2010. Roles of Stakeholders in Strategic Decision-Making of Microfinance Organizations. International Business and Economics Research Journal. 9(7), 51-64.

Chenhall, R.H., Langfield-Smith, K., 1998. The Relationship between Strategic Priorities, Management Techniques and Management Accounting: An Empirical Investigation Using a Systems Approach. Accounting, Organizations and Society. 23(3), 243-264.

Cagwin, D., Bouwman, M.J., 2002. The Association between Activity-Based Costing and Improvement in Financial Performance. Management Accounting Research. 13(1), 1-39.

Akyol, D.E., Tuncel, G., Bayhan, G.M., 2005. A Comparative Analysis of Activity-Based Costing and Traditional Costing. World Academy of Science, Engineering and Technology. 3(12), 44-47.

Mishra, B., Vaysman, I., 2001. Cost-System Choice and Incentives - Traditional vs. Activity-Based Costing. Journal of Accounting Research. 39(3), 619-641.

Boonkhun, C., Chandra, M.J., Enscore, E.E., 2005. Application of Activity Based Costing in Investment Analysis. International Journal of Industrial Engineering: Theory Applications and Practice. 12(1), 68-78.

Kaplan, R., Norton, D., 1992. The Balanced Scorecard - Measures That Drive Performance. Harvard Business Review. 79.

De Geuser, F., Mooraj, S., Oyon, D., 2009. Does the Balanced Scorecard Add Value? Empirical Evidence on its Effect on Performance. European Accounting Review. 18(1), 93-122.

Bain, 2018. Balanced Scorecard. (Online) Available at: (Accessed 1 February 2021).

Wiersma, E., 2009. For Which Purposes Do Managers Use Balanced Scorecards: An Empirical Study. Management Accounting Research. 20(4), 239-251.

Nørreklit, H.S.O., 2000. The Balance on the Balanced Scorecard - A Critical Analysis of Some of Its Assumptions. Management Accounting Research. 11(1), 65-88.

Ittner, C.D., Larcker, D.F., 2003. Coming up Short on Nonfinancial Performance Measurement. Harvard Business Review. 81, 88-95.



  • There are currently no refbacks.
Copyright © 2022 lei Tong Zhang Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
  • :+65-98550280 QQ:2249355960