The fifth edition has been updated throughout. It aims to provide a full understanding of the key aspects of the annual report, concentrating in particular on companies in the private sector but presenting principles of wider application which are relevant also to organisations operating in the public sector.
In the management accounting section, the book aims to establish a firm under- standing of the basic techniques, while recognising that more recent developments in management accounting are becoming widespread. A contingency approach is adopted which emphasises that the selection of management accounting techniques is conditional on management’s purpose. To meet this purpose, the management accountant performs the roles of directing attention, keeping the score and solving problems. Strategic management accounting is emphasised from the outset so that students are aware that management accounting must take an outward-looking approach. These themes are reiterated throughout, concluding with an explanation of the role of management accounting in business strategy, particularly e-business in the new economy. A student who has completed this first-level study of management accounting will be aware of many of the day-to-day practices of management account- ing in business and the relevance of those practices. It also provides a self-contained, broad introduction to management accounting for business students who do not need to develop specialist knowledge.