Strategic management accounting

Name

University

Course

Tutor

Date

With the epoch in the changing requirements of the business familiarities , the need for strategic management has readily been applied by business in their pursuit for a place in the market full of competition . It can be defined as the tool which provides and chooses to analyze the various data on management accounting that could however be related to a certain strategy . The definition however compounds three important aspects which are the provision of data , the analysis of this data and a relationship

towards a certain strategy . However , the history of strategic management accounting is rooted in the former aspect of management accounting . This was basically a coordinated approach in formulating various standards for application in the business . With the changing image of commercial activities , the need for various business therapies that would provide a better orientation into approaches saw the emergence of strategic management accounting

Since early 1980s , several approaches have been used in the discipline of strategic management accounting . In most of the organizations , an analysis of the tools of SMA has been enabled through the study in the factor analysis of the organizations . Factor analysis is the implement in which business operations are dictated by various factors which are operational results of the business structure and performance in relations to the states of competition at the market place . The approach to SMA is compounded by a three-literature technique in which organizations use in a bid to formulate various therapies for an adequate monitoring in the competitive position of the organization with costing system . Organizations formulate the best ways for its optimal costing structure . Optimal costing is a tool for efficiency in an organizations activity . Optimal costing can also be termed as economical costing where organizations use various tools to provide the most adequate cost factor at the greatest level of revenue . Either , customers pricing is an important technique which is applied in SMA . With the varying competitive structure at the market place , organization 's products must be priced adequately to attract a high customers number Different products pricing can be used depending on the market conditions of the demand structure and the supply . Different pricing levels result to different customers levels . Depending on the nature of the market place , there are several forces that define the demand factor and supply schedule . Due to the increasing number of firms producing competitive goods , the market place is highly competitive . The organization will therefore formulate various structures which help to produce a high competition adaptation at the market place (MacWilliams Wright , 2001

With the diversity in commercial activities , the development in the strategic management accounting (SMA ) has thus been accompanied by a package of four features which emphasize the nature of this concept These are , the competitor , customer orientation , the long run orientation and the process orientation

With a cycle of various accounting tools , the analysis of these four SMA features makes it vulnerable for adequacy in their application by the organization

Competitor analysis is...