Management Accounting Innovation 3IntroductionManagement accounting can be defined as the process of preparing managementaccounts which are aimed at providing accurate and timely financial as well as statisticalinformation needed by accounting management agents within a company such as;department managers and the chief executive officer for important decision making. Thefinancial reports indicate the amount of cash available, accounts receivable, outstandingdebts, raw material and in-process inventory. Management accounting however mayvary from firm to firm as provided for by policy and structure in the company (Seal,Garrison & Noreen 2009, p. 675-680).Chadwick (2000, p. 676) highlights that management accounting uses accounting,finance and management together with the leading edge techniques required to drivesuccessful businesses. It is a useful tool in advising managers about the financialimplications of various projects initiated; it can be used to explain the financialconsequences of business decisions made within a company. As an instrumental tool informulating business strategies aimed at enhancing desirable performance,management accounting offers a platform for conducting internal audits and checksbesides being a parameter used to explain the impact of the competitive landscapesurrounding a business enterprise.Management accounting innovation in modern organizationsAccording to Emsley (2005, pp. 14–16) several management accounting innovationshave in the last fifteen years been developed for use by most organizations, top on thelist being Activity-Based Costing (ABC) and the Balanced Scorecard (BSC).