Role of Accounting Practices in Managing Contemporary Organizations Essay

Role of Accounting Practices in Managing Contemporary Organizations - Essay Example Management accounting is one such emerging function of accounting where accounting is geared towards management function. Management accounting is having a major role in the overall success of the business environment away from bookkeeping activities. The new changing role of accounting, practice in organizations includes management accounting function in supply chain management and management support for the adoption of new technology in firms. Accounting initially had no role to play in these activities as their role was confined to the bookkeeping activities; the changes in management accounting have turned around the role of management accounting making it an important factor in every organization. Both the private and public sector are becoming reliant on the new role of management accounting in business. However, change has never been easily adopted in organizations. Resistance to change is common thus the changing role of management accounting is not being received with open arms. Several barriers to change are cropping up delaying the implementation of management accounting practice in organizations. This research paper is aimed at looking at the various changes in the functional unit of management accounting based on case studies by various scholars. The role of management accounting practice in various organizations will be looked into. The barriers to change in an organization preventing implementation of management accounting practice are also of interest in this research. Traditionally, buy or make decisions were made based on the cost of production.