The Role of Changes in Modern Industry Environment in the Development of New Techniques in the Field of Management Accounting - A Literature Review

Abstract

Problem: The traditional management accounting methods are not capable any more to provide the requirements emerged from the subsequent changes in the modern industry environment, or to meet its needs of accounting information. So, it becomes necessary that management accounting copes with changes in the modern industry environment through developing the traditional methods or inventing new techniques that is in line with the changes in the environment of modern industry, and meets its requirements especially with regard to accounting information.

Purpose: This study aims to identify the role of changes in modern industry environment in developing new techniques in the field of costs accounting then to describe the extent of the contribution of the invented techniques to meet the requirements produced by the changes in the modern industry environment.

Approach/Method: the study focused on reviewing the available articles in academic journals and resources represented in university dissertations.

Findings: it was found that the traditional cost accounting systems with its methods and tools are no longer respond to changes in the modern industry environment, and no longer be able to fulfill the requirements created by modern industry environment. The changes have contributed greatly to the development of the methods in the field of cost accounting that has the ability to fulfill the requirements created by these changes

Conclusion: Management accounting has the foundations on which it could be developed naturally so as to keep up with the changes that occur in the surrounding systems, and has the ability to keep pace with developments posed by these changes and to deal with them efficiently. Changes in modern industry environment have contributed to the creation and development of techniques in a way that enables these techniques to respond to the requirements created by the changing environment.