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Abstract

Management accounting historically fell under the dominance of financial accounting following the emergence of audited financial statements in the early twentieth century, driven by the rise of professional regulatory bodies and the mandatory requirement for companies to prepare financial reports in accordance with Generally Accepted Accounting Principles (GAAP). This shift significantly impacted the value of information provided by management accounting, rendering it less relevant for managerial purposes—a phenomenon recently conceptualized as "Relevance Lost." Consequently, a financial accounting mindset became orienated toward the preparation of audited statements as the primary concern, often sidelining the role of accounting information in supporting strategic decision-making. Simultaneously, the profound technological and economic leaps witnessed since the late twentieth century and the beginning of the twenty-first century led to a massive evolution in both pure and applied sciences, including accounting, which saw the emergence of new characteristics and the obsolescence of once-fundamental functions. In the realm of data processing, the rapid acceleration of information technology transformed the procedural nature of accounting, as sophisticated software now automates the recording, classifying, and summarizing of data without human intervention. Furthermore, the traditional control function of accounting has been reshaped by advanced manufacturing systems and artificial intelligence, which enable machines to exercise self-regulation, thereby diminishing the traditional roles of financial and cost accounting. These environmental shifts have necessitated the evolution of management accounting, leading to the emergence of innovative techniques designed to provide superior information that empowers managers to navigate modern business complexities and achieve qualitative advancements in organizational governance.

DOI

10.33095/jeas.v16i59.1497

Subject Area

Accounting

First Page

258

Last Page

280

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