The role of management accounting in the development of a manufacturing strategy

In: International journal of operations & production management, Volume 15, Issue 12, p. 21-31

Abstract

A well developed manufacturing strategy is becoming increasingly
important to many manufacturing organizations. A major feature of such a
strategy is the definition of a manufacturing infrastructure that is
consistent with how products and services compete in the selected
market. The managerial accounting system is a key component of this
infrastructure. Reports the results of a survey of 85 manufacturing
companies. Finds that many companies use an accounting system that
appears to be inappropriate. The systems are often ill suited to their
marketplace and inconsistent with an appropriate manufacturing strategy.
Discusses recommendations for change for companies currently developing
a manufacturing strategy.