                                  ACC 411


     The role of Management Accounting in the future looks good.  Based on the articles I
read, Management Accounting is going to be the wave of future for accounting.  Because of
new management techniques, accounting has become more vital to the company as a whole.  Some
of the new ways of management include total quality management (TQM), just-in-time (JIT)
production and purchasing methods and activity-based costing.  These various types of
management styles pull accounting into the company process  more easily.  Accounting has
become an actual part of the management process; therefore, the need of Management
Accounting has grown in proportion to the new management styles.  Accountants are now
becoming a larger part of cross functional teams and are being used more in the decision
making process.

     Customer satisfaction comes first when dealing with total quality management.  The
quality of the company, the product and the company's service is determined by the customer.
This new management technique affects accountants who have to report and measure the
employees' performance as a whole.  Product cost, service delivery and product reliability
are all measured under total quality management.  Management Accounting's need is increased
due to the frequent follow up reports required by managers. This need affects the accountant
because his or her job is to provide the vital performance statistics. This is one reson why
Management accountings future look bright.

     Another new management technique is the just-in-time production and purchasing method.
The just-in-time method deals with the cut back of warehouse inventory.  When a product is
needed, it is then produced.  Keeping inventories to a minimum reduces the need for large
warehouses which can be beneficial to both small and large companies.  The accountant's time
is now more able to be spent on managerial activities and less consumed with inventory.  The
just- in-time method leads to an increase in Management Account reports which can quickly
generate cost estimates.

     Finally, activity-based costing continues with the new wave of management techniques.
This form of costing is much more detailed and difficult to master but the cost numbers are
more accurate.  This product costing method is becoming more widely used, especially in the
computer industry where direct labor costs are low and competition is high.  Accountants are
required to give more specialized reports that deal with the company and its production and
management.

     By the end of this decade, management accountancy and auditing will be seen as full and
equal partners within the wider accountancy profession.  Management Accounting is becoming
as vital as financial Accounting and will become more and more vital in the near future. 
Membership and student registrations have grown by 35 and 40 per cent respectively in the
seven years since January 1986.  Membership in the Institute of Management Accountants has
grown from 97 charter members in 1919 to 90,000 members today.  The chapter number has now
grown from 4 to 300.  Management Accounting is the wave of the future because of the new
management techniques of total quality management, just-in-time manufacturing and
activity-based costing. There is no doubt that the public now has a much better
understanding of the profession of management accountancy and the capabilities of Institute
members.              


































                               Bibliography


 Signs of the End of the Recession for Accountancy ?  Management Accounting. Vol. 72 Iss. 7
          July/Aug. 1994 P4.


 New Frame for Financial Management. Management Accounting. Vol. 72 Iss. 4 April 1994
          P20-22.

 A Vision for the Future. Management Accounting. Vol. 71 Iss. 10 Nov. 1993 P20-21.

