MM416 Essay Example | Topics and Well Written Essays - 500 words

MM416 - Essay Example Strategic management accounting has not been described in a justifiable way in order to eliminate any doubts of reflection in the management accounting textbooks (Hoffjan & WÃ ¶mpener , 2006). Therefore, the lack of use vastly recognized understanding is associated to the reluctance of the textbook authors in the usage of "strategic management accounting." There are different ways through which Chief Financial Officers (CFOs) determine management accounting innovation in an organization. According to David Naranjo-Gil, innovation in management accounting is referred to practices, and ideas that are viewed as new in its adoption in improving organizational efficiency and performance (Naranjo-Gil , Maas , & Hartmann , 2008). Therefore, CFOs determine and ensure the adoption of these practices by assessing and reporting the required financial and non-financial information in making concrete organizational decisions. The individual variances between CFOs and their respective characteristics dictate the use of organizational innovation in management accounting. According to a dissemination study on management accounting, most public sectors adoption of management accounting innovations is significantly affected by the central government. As a result, the determination of management accounting innovation by CFOs is based on various politica l and economic factors. Strategic planning process is a core element in improving organizational efficiency and business operations. According to Gonn K. Weide, there are a vast range characteristic of strategic planning process that can be adopted by the management in accomplishing short-term and long-term organizational goals. For instance, an effective strategic planning must incorporate communication strategy, a task force, vision and mission statement, values, goals and objectives, activities, an implementation strategy, and a