Traditional Management Accounting -- Opposing Essay

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Yet, success would be reached as the system would be better able to account for the intangible assets within a corporation and link them to the final costs of the service. This view argues that despite its recognized reduced applicability in today's business community, traditional management accounting systems enjoy the benefit of vast expertise and advantages which have been consolidated across time. Therefore, their elimination would have a negative impact and the most desirable course of action would be that of a readjustment of the system to meet the new and continually emerging needs (Financial Executive, 2002).

The next proposition that is being then forwarded revolves however around the idea that it would be even more efficient to replace the traditional systems altogether, rather than spend additional time and efforts to repair the old one. The traditional techniques of management accounting, despite their past benefits, are nowadays less applicable.

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And not only that they are less relevant, but they also represent impediments in conducting a proper business operation. "Traditional methods of accounting and measurement quickly can become a hindrance -- they measure the wrong things. Rather than focusing our efforts on measuring those things that our customers care about, we rely on traditional and complex accounting measures that are long on variance reports and short on measures that drive the business" (Niedenthal, 2001)......

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