INTRODUCTION

According to the book of Basic Accounting by Ballada, the knowledge in managing

business operations historically evolved when Fr. Luca Pacioli’s introduced bookkeeping
system. People realized how the double entry book keeping system are importance to its
life and businesses all over the world.

According to Carter, knowing the management accounting is essential for

managers to do their jobs because the managers of an organization needs the more
essential and general understanding can be gained from literature, textbook and theories.
The financial and non-financial information covers the general and finance/accounting
managers of servicing, merchandising and manufacturing registered entrepreneurs of
Metro Manila, Philippines. Through this information about management accounting, the
readers be able to appreciate and recognized about how the important of management
accounting to the managers. Through this objective, the readers fill up those short of
management areas to meet the needs of practicing managers.

BACKGROUND OF THE STUDY

During 1990’s, there was collected 152 published articles of North Americans from
six leading journals and categorized the documents of the articles topics and the methods
of research based on theories.

During 1997, George Foster of Stanford and Mark Young of Southern California
revealed that the most important as managers are identified customers satisfactions
followed by cost control and product quality of managers responding out of the given
important management areas through the one page questionnaire through conference
and seminars. They discovered that Cost management, Cost control and Cost accounting
topics are the areas of the business that was given an extensive coverage in management
accounting. The researchers asked 300 general managers and finance managers
working from different entities to rank their top three choices as the most important
general management proirities.
REVIEW OF RELATED LITERATURE AND STUDIES.

It shows the definition of management accounting, its importance to business,

sources of management accounting ideas, and discusses the scope and limitation found
in the literature.

SYNTHESIS

Management accounting is renowned to be very useful accounting resources that

extensively help organizations incorporate Cost accounting, financial and non-financial
information. Knowing this information is essential for managers to do their jobs (Carter
2007, p.1). Bredmar (2011) mentioned that most of the foundation areas covered a
common structure and majority of the topics focused only on Cost calculation,
Management control and Budgeting. After several years of developing new perspective
on the management concept this studies keep informed the user of far-reaching
contribution of leading scholars and academic researchers to management accounting
literature. All of the books of management accounting included of what you called “in
Practice” example Corresponding to every topics to make readers aware of the actual
application of theories into practice.

THEORETICAL/CONCEPTUAL FRAMEWORK

The researcher used the theory-consistent empirical management accounting

research by Luft and Shield as a basis of this research. This theory is all about the cause
and effects of management accounting practices, as presented in 275 articles published
in six leading journals. The maps highlight connections and disconnects in the diverse
streams of management accounting literature, in terms of what has been researched,
what are the direction and shape of the explanatory links proposed and what is the level
of analysis.
STATEMENT OF THE PROBLEM

1. How will this information help managers do their jobs better?

2. Do benefits of producing this information exceed the cost?

3. What management areas emphasized and important in today’s organization?

4. What are the similarities topics in management accounting between the researchers
made in 1997 and in the present day?

HYPOTHESIS

The author aims to discover whether management priorities in today’s society

changed in terms of level of importance placed as compared to previous studies and to
measure up against the latest management researchers contribution particularly within
the important management areas considered by the company.

SIGNIFICANCE OF STUDY

This study will help the students, specially the practicing manager to have a full
knowledge about the importance of management accounting. This study will seek
awareness for them to come up new studies that will improve their perspective about
management accounting.

SCOPE AND DELIMITATION

This study focuses on the determination of the level of importance of management

accounting for managers and finance/accounting managers as to what management
areas are prioritized in today’s organization through George Foster and Mark Young’s
work. The researcher of this study wants to evaluate the previous studies about
management accounting in order to find out if the subject areas prioritized by manager
and finance/accounting managers has distinction. In order to determine it, the researcher
used 152 published articles by Shields (1997), some research articles of Luft Shields
(2003) and 275 management accounting articles.
DEFINITION OF TERMS

Management Accounting – Is a process that deals with the measuring, analysing, and
reporting financial and non-financial information provided for the employees and
managers which is used in decision-making process, evaluation of the performance of
the organization, and for the attainment of the goals and objectives of the organization.

Double Bookkeeping System - refers mainly to the record-keeping aspects of

accounting. Bookkeeping involves preparing source documents for all transactions,
operations, and other events of the business.