Contents

• The Beginning of Management Accounting: 3
• Criticisms by Kaplan and Johnson 4
• Developments in Management Accounting 5
• Major Developments in the Last 50 Years: 6
• Management Practices over Time: 7
• Cost accounting 7
• Just-in-time (JIT) 7
• Theory of constraints 8
• Lean production 9
• Conclusion: 9
• References: 10

Description

Initially Management Accounting appeared as an important action throughout the early hours of industrial insurrection, in the most important businesses and ventures of the period. Management accounting came into existence subsequent to financial accounting, because initially the need for financial accounting was never felt. It was in due course with the advent of globalization and liberalization that financial accounting came into existence. With less cumbersome work schedules and not much work load double-entry bookkeeping system was in use for more than 300 years by the moment management accounting originally came out as a identifiable pasture.
The most important industries in the beginning of the industrial era were textiles and railroads, these were the main occupation of the people, and these industries only took part in the important positions pertaining to the history of management accounting.
Raw resources and manual labor were employed on large scale to make clothes and to link products, and the mills devised techniques to pathway the competence with which they used these inputs. Both these industries, more importantly railroads required important reserves of capital more than extended periods of duration for the building of roadbeds and pathway. Once ready, railroads managed to grip big quantities of cash proceeds from many consumers, and together devised financial and operational events of competence for moving travelers and cargo.
By the conclusion of the 19th century, novel industries and kinds of trades were becoming significant to the economies of the United States, Great Britain, and other industrializing homelands. These ventures included steel manufacturers, group manufacturers of consumer harvests such as foodstuffs and tobacco, and throng merchandisers such as Sears. Foremost companies in these industries urbanized accounting systems to convene their needs for equipped run.
Management accounting concepts and techniques sustained to develop quickly all the way through the rest of the first half of the 20th century, and by 1950 the majority of the key rudiments of management accounting as experienced today were well recognized.