Management Accounting: Some Comments

Interorganizational cost management in the exchange process

“…For interorganizational purposes, the control function is widely recognized in the literature (e.g., Dekker, 2003Dekker, , 2004Mouritsen et al, 2001;Seal et al, 2004). Another main function is to support decision making (Horngren, 1995(Horngren, , 2004. The role of the supplier's management accounting in supporting interorganizational decision making has been left largely unexplored, though (Nilsson, 2004).…”

Beyond budgeting or budgeting reconsidered? A survey of North-American budgeting practice

“…Some argue that the problems with budgeting stem from the way budgets are used (Horngren et al, 2004) while others argue that budgeting processes are fundamentally flawed (Hope and Fraser, 2003a). Hansen et al (2003), among others, have called for a systematic examination of these issues against empirical evidence.…”

Assessing the Performance of Business Unit Managers

“…Disaggregated and non-financial measures are less subject to exogenous events and therefore contain less noise. In contrast, accounting return measures are expected to be too coarse to provide desirable signals and lack precision when managers have little authority (Horngren 2004). This "signal-to-noise" argument suggests a negative association between authority and the use of disaggregated and non-financial measures.…”