Management Accounting

Another major conflict or difference in the midst of the two models relates to the situation of commission history and management accountants. check to the traditional view, management accounting is an objective and neutral function with no personal bias of the managers or any individual. In other words, the accountant or manager is not creditworthy for the consequences of his actions because he is believed to be just reporting the facts. The modern transcription theories hold a different view in this regard. This view suggests that accountants usually decide the nature and form of accounting reports and they frequently are responsible for the important decisions which determine who receives what information. Therefore, the accounting cover is not that objective and neutral than it appears at first glance.

Consequences of the traditional Behavioural Assumptions

While evaluating the models of demeanor discussed above, two crucial questions select to be answered.
First, which model manifests in it the demeanoural views of the majority of management accountants?
Second, which model describes the human motivation and behaviour as it actually is in the real world?
Without any sort of doubt, it is a known fact now that the modern view of behaviour is more realistic than the traditional view.



But as hostile to the Modern Organisational Theory view, if management accounting systems are establish on the traditional view of behaviour and if this view of behaviour is an inadequate reflection of the real world, management accounting, as it is currently practiced, can be expected to contribute to a hearty range of undesired responses from organization members.

There have been instances where accounting systems have caused individuals to take actions which are against the best interest of their organizations. In the case of budgets, for example, budgeting systems are often put strong cart on managers and employees to achieve a certain level of instruction execution in a given...If you want to get a honest essay, order it on our website: Orderessay



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