Advancements in Management Accounting: An Essay Sample on Performance Measurement and Evaluation

Introduction

Management accounting refers to the preparation of business ripcord about the overall business operations. The management accounting helps managers in making decisions as the managers use the reports you identify measure, analyze, and interpret as well as communicate information to the other managers. Management accounting normally deals with the topics and the general questions and the management counting practice (Anghelache & Bodo, 2018). In the last three years, the major problems of management accounting are the key issues that were discussed and the innovation of the theory of the management of accounting, method, and the alternative way of developing the management accounting (Baker et al., 2010).

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There is a lot of studies in china about performance measurement and evaluation because it was determined to affect enterprise performances especially the newly implemented enterprise performance evaluation models together with the improvement of the original evaluation system (Chan, 2016). EVA model for instance had a model of risk adjustment and its application to evaluating some of the performances of the central enterprises. The focus has been on the performance measurement system the relationship between performance and the individual for a very long time (Chow et al., 2006). For instance, the expression functions of the performance measurement system on a mental health development project. This was mainly done to find out the relationship between the performance and the individuals and how the time performance feedback affects the performance of an individual (Ezzamel & Xiao, 2015). This in turn affects the performance evaluation and feedback through the incorporation of the concept that the cost of learning fluctuates in each stage of the multi-step task as provided by the system. The findings also call for the development of management accounting with Chinese specific characteristics.

Research Objectives

The research objectives are therefore to:

1. Define management accounting and management control system
2. Determine the characteristics of management accounting specific to china
3. To review the Chinese management accounting environment, and systems
4. To determine the flaws in the Chinese management accounting
5. To propose a new management accounting approaches and systems

Research Questions

1. How do the Chinese address management control system in enterprises
2. What is the significance of management accounting in Chinese enterprises
3. How does the Chinese market differ from the American in terms of management accounting
4. What is the role of technology and innovation on the development of management accounting and control
5. How is the study of the integration of management being conducted
6. What is the impact of the management control system on corporate performance?
7. What is the role of information accuracy in management accounting and how did it affect transparency?

Literature Review

Exploration of the related challenges of the company's executive compensation was the reason as to why research on the compensation system was rolled out. On the other hand, the related research executive compensation is mainly based on the prevailing compensation control (Gong & Cortese, 2017). The development of the modern enterprise system has led to the separation of ownership and management rights on how to reasonably distribute executive compensation. These systems are mainly involved with research on the incentive system and methods of executives and employees (Li et al., 2013). This is mainly done to improve the enterprises’ performance together with the creation of more value.

Poon et al (2001) and Soin & Collier (2013) are some of the scholars who were determined to find the relationship between performance and an individual. They both came to a finding that organizations can greatly cut on costs if they have a fitting management accounting system. Performance-based compensation attracts more participants with higher skill level preferences and high-risk preference (Sponem & Lambert, 2016). That is why management accounting should be specifically developed in line with the region's specific variables in mind.

Some of the key accounting concerns include executive compensation, and competitive strategy as well as corporate performance. In China, the examination of the impact of executive compensation incentives on the overall corporate performance should be given primacy. It is also important to ensure that the regional management accounting should match the executive compensation incentive mechanism as stipulated by various competitive strategies. According to Stout & West (2004), the executive incentive methods should be given primacy in the development of the Chinese management accounting system. Failure to keep these in mind will harm the performance of the company. These results have further widened the scope of the company’s executive compensation and overall corporate performance.

According to Xie (2019), corporate social responsibility is significantly correlated with the manager compensation incentive which means that social responsibility may become a new agent factor used by the managers for campaigning and budgetary increment especially the manager’s incentive in state-owned enterprises especially when the performance the enterprise has been on the decline (Xiong, 2016). Only one journal has been selected for the study of internal control in the last three years. This journal came from the Management World and it mainly studied the advantages and disadvantages of internal control. The budget implementation and slack were used as the background for this data. This means that the budget is mainly used for negotiation, communication, and management. For example, Xue & Zan (2012) negotiated for planning and performance evaluation as a part of his study to the budget. Studies from Chinese local enterprise support budget planning and execution as well as executive credit control. The budget implementation has a lot of implications for the Chinese marker especially in the study of construction mode about budget management (Yigitbasioglu, 2016).

Cost Control as an Issue in Management Accounting

The treatment of cost is also another major issue in management accounting. The cost issue which was discussed in 2015-2017 that include the counting of the cost, and some other issues regarding the cost stickiness, for example, the implementation of the minimum and maximum wage regulations that guide the running of the project (Yin & Xie, 2017).

Externally oriented management accounting research has three major subjects: value chain analysis, strategic management accounting, and supply chain management. When caring for research on strategic management for instance Jia Jianfeng, Tang Guiyao the research on the impact match that occurs between the executive competency and the strategic orientation which is on the corporation performance. It enriches and enhances the research between the two parties (Yin & Xie, 2017).

Significance of the Study

This paper helps in the classification of these research methods of the management account document from the year 2015 to the year 2017. Most of the studies relied on empirical research methods. Most of the literature does not cover the development of management accounting with china specific characteristics. Therefore, this study will specifically focus on filing the literature gap in china specific management accounting information system

Research Methodology

The researcher will adopt a mixed research methodology. The researcher will, therefore, gather analyze and interpret both qualitative and quantitative data related to the development of management accounting with Chinese characteristics and promote the upgrading and transformation of Chinese accounting. The use of the mixed research method is to exploit the synergistic advantages of the mixed research method because each method has limitations that can be addressed by the other. The researcher will mainly collect secondary data because this is desk research and due to time and cost constraints.

The researcher will adopt the PRISMA protocol to identify the most relevant sources of the s systematics study and meta-analysis. The researcher believes that many studies have been conducted on how to develop a management accounting specific to the Chinese market to upgrade and transform the Chinese accounting. The researcher will gather data from peer-reviewed journals, theses, industry journals, and magazines to determine the current trend and prospects of the development of management account with Chinese characteristics. Data will be analyzed through both qualitative and quantitative data analysis techniques. For example, the researcher will use a thematic analysis to analyze the qualitative data. On the other hand, the researcher will use the quantitative techniques to analyze the quantitative data to find the most (maximum) proposed or recommended approach development accounting development.

Ethical considerations in the second study include data confidentiality and security. The researcher will, therefore, ensure that the data are de-identified before they are released. Additionally, data will be protected throughout the period of the study. Finally, the researcher will cite all the borrowed contents to avoid plagiarism.

References

Angelate, C., & Bodo, G. (2018). General Methods of Management the Credit Risk. International Journal of Academic Research in Accounting, Finance and Management Sciences, 8(1). https://doi.org/10.6007/ijarafms/v8-i1/4039

Baker, C., Biondi, Y., & Zhang, Q. (2010). Disharmony in international accounting standards-setting: The Chinese approach to accounting for business combinations. Critical Perspectives on Accounting, 21(2), 107-117. https://doi.org/10.1016/j.cpa.2009.11.004

Chan, J. (2016). Government accounting with Chinese characteristics and challenges. Public Money & Management, 36(3), 201-208. https://doi.org/10.1080/09540962.2016.1133975

Chow, C., Duh, R., & Xiao, J. (2006). Management Accounting Practices in the People's Republic of China. Handbooks of Management Accounting Research, 21(11), 923-967. https://doi.org/10.1016/s1751-3243 (06)02019-0

Ezzamel, M., & Xiao, J. (2015). The development of accounting regulations for foreign-invested firms in China: The role of Chinese characteristics. Accounting, Organizations and Society, 44, 60-84. https://doi.org/10.1016/j.aos.2015.05.005

Gong, X., & Cortese, C. (2017). A socialist market economy with Chinese characteristics: The accounting annual report of China Mobile. Accounting Forum, 41(3), 206-220. https://doi.org/10.1016/j.accfor.2017.04.002

Li, P., Tang, G., Okano, H., & Gao, C. (2013). The characteristics and dynamics of management controls in IJVs: Evidence from a Sino-Japanese case. Management Accounting Research, 24(3), 246-260. https://doi.org/10.1016/j.mar.2013.04.002

Poon, M., Pike, R., & Tjosvold, D. (2001). Budget participation, goal interdependence, and controversy: a study of a Chinese public utility. Management Accounting Research, 12(1), 101-118. https://doi.org/10.1006/mare.2000.0146

Soin, K., & Collier, P. (2013). Risk and risk management in management accounting and control. Management Accounting Research, 24(2), 82-87. https://doi.org/10.1016/j.mar.2013.04.003