Accounting

BAO2204: Management Accounting.
Assignment 1.

Article: Ferrara, W.L, 1995, Cost/Management Accounting- The 21st century, Management Accounting (US), December, pp.30-36.

The purpose of this report is to review the changes that Management accounting has undergone throughout the 20th century and how these changes will have an effect on Management Accounting in the 21st century, according to Ferrara. The article by Ferrara provides a comprehensive view as to how Management Accounting has been beneficial for organizations, which is divided into four separate areas and how it will continue to be as Management Accounting approaches the 21st century. These changes are all outlined below:

The first paradigm that Ferrara outlines is Paradigm A, which consists of the turn of the 20th century until the 1940’s. This was the era of the Industrial revolution plus, and was a representation of the image of an early day industrial engineering type. As a result, the costs that ...