Management Accounting Organizational Life Cycle Stage

Question: Discuss about theManagement Accountingfor Organizational Life Cycle Stage. Answer: Introduction This study deals with critical analysis on the article named as The Effect of Organizational Life Cycle Stage on the use of activity-based costing (Kallunki and Silvola 2008). In this particular assignment, focus has been given on investigating on usage of an activity-based price accounting systems in and amongst accounting companies in various organization in life cycle stages. The main overview of the article is explaining the successful as well as unsuccessful in phases of corporate life cycle (Kaplan and Atkinson 2015). This article background and purpose lies in dedicating longitudinal study especially for corporate life cycle. The main aim of the study investigates on organizational life cycle theories at each of the growth phases. The present segment explains the usage of activity-based costing for accounting firms at maturity as well as revival phases in support hypothesis (Ward 2012). In this study, emphasis has been given for conducting robustness check on results using var ious control variables on non-response bias in the near future. . Analysis The key points behind this journal articles explain in the development stage by accounting companies as considered by fast sales development as well as expansion of activities in related products. As rightly put forward by Soin and Collier (2013), sales of firm renders formal as well as bureaucratic organization in structuring the establishment of innovation deckling stage in given way. On the contrary, revival stages reveal the firms adopting divisionalized for coping up with complex as well as heterogeneous markets. In other hand, life cycle stages of the firm describes as organizational life cycle theories in accordance with internal characteristics in external contexts (Horngren et al. 2013). This particular firm operates in various firms as dependent under stages of development in the most appropriate way. The main idea behind the article reveals understanding of firm life cycle because of contingency whereby organization responses for matching purpose. According to Parker (2012), usage of management accounting varies from various stages in case of organizational life cycle for future analysis purpose. In addition, firms require formal management accounting as well as controller organizations in later life cycle stages in comparison with early stages. Therefore, organizational life cycle considers as variable in the empirical management in an effective way (Kaplan and Atkinson 2015). As opined by Chenhall and Moers (2015), main objective behind the article lies behind investigating usage of activity-based cost accounting system differing in and across life cycle stages. In this particular case, life cycle literature reports various increased competition as well as diversification of products (Kaplan and Atkinson 2015). These markets actually affects firms for attaining maturity as well as revival phases for keeping emphasis on formal cost controls. This particular paper contributes towards management accounting literature in exploring life cycle stages. The major lies in dedicating the size of firm at growth phase at revival stages (Cullen et al. 2013). This firm appears in maturity as well as revival stages of operations for possessing managerial need for an advanced cost accounting system. According to Parker (2012), main findings from this article reveal the significant inferences for actual practice of management accounting research. This particularly shedding graceful on real fundamental organizational need as designated for life cycle stages for business organization. On the contrary, small business firms make use of activity-based costing at various life cycle stages. Therefore, it expands the earlier studies for understanding the effect of size using activity-based costing in comparison with other life cycle stages of accounting firms (Kallunki and Silvola 2008). The main strength of the article conducts empirical analysis based from cross-sectional survey data comprising of 105 firms. As rightly indicated by Chenhall and Moers (2015), industries conducts in various life cycle stages in supporting theory The main consequences indicates the major features of firm as stated by life cycle literature affecting usage of advanced cost accounting at life cycle phases. On the contrary, companies ranges from gaining stock marketplace listing as opposite to firms especially in the development phases. In other words, life cycle stages based upon size or ages for remaining decisive for explaining usage of activity-based accounting activities for future analysis purpose (Kallunki and Silvola 2008). This article undergoes certain weakness in developing the hypothesis section. This article lacks essential analysis on organizational life cycle stages in depth form. Research methods used in this journal article conducts on empirical analysis using questionnaire completion of 105 Finnish firms (Kallunki and Silvola 2008). It operates using information from industries as well as life cycle stages in supporting hypothesis as derived by using life cycle theories. On the contrary, result indicates usage of advanced cost accounting system differing from life cycle phases. This study reports for lower profitability activities in more diversified products as well as services for control purpose. As rightly put forward by Chenhall and Moers (2015), it involves investigating on use of activity-based costing varying from accounting firms. On the contrary, it uses self-categorization variables in measuring the life stages of accounting firms for future analysis purpose. In addition, earlier studies reports for usage of activity-based costing rise with size for companies (Kallunki and Silvola 2008). Conclusion At the end of the study, it is concluded that Life Cycle Research make use of management accounting systems as it varies in and across stages of organizational life cycle. By comparing with growth firms, it has been noticed that administrative firm takes task of mature as well as revival firms dedicating huge complexity at the same time. In other words, it is needed for products and services attaining cost effectiveness for earning adequate profit margins especially on highly competitive markets. Addition to that, experiences is necessary for viewing at the increased diversification of products as well as markets in gaining higher organizational size. Therefore, it is sometime making use of advanced cost accounting systems like activity based costing for most of the revival firms. In other words, this above analysis finds out the usage of activity-based costing as rises depending upon the scope of accounting businesses in desired form. . Reference List Chenhall, R.H. and Moers, F., 2015. The role of innovation in the evolution of management accounting and its integration into management control.Accounting, Organizations and Society,47, pp.1-13. Cullen, J., Tsamenyi, M., Bernon, M. and Gorst, J., 2013. Reverse logistics in the UK retail sector: A case study of the role of management accounting in driving organisational change.Management Accounting Research,24(3), pp.212-227. Horngren, C.T., Sundem, G.L., Schatzberg, J.O. and Burgstahler, D., 2013.Introduction to management accounting. Pearson Higher Ed. Kallunki, J.P. and Silvola, H., 2008. The effect of organizational life cycle stage on the use of activity-based costing.Management Accounting Research,19(1), pp.62-79. Kaplan, R.S. and Atkinson, A.A., 2015.Advanced management accounting. PHI Learning. Parker, L.D., 2012. Qualitative management accounting research: Assessing deliverables and relevance.Critical Perspectives on Accounting,23(1), pp.54-70. Soin, K. and Collier, P., 2013. Risk and risk management in management accounting and control.Management Accounting Research,24(2), pp.82-87. Ward, K., 2012.Strategic management accounting. Routledge.