Technological Innovation Impact on Accounting Field
Technology innovation is the process through which new (or improved) technologies are developed and brought into widespread use. Innovation can be composed of research, development, demonstration, and deployment. Although it is known clearly that innovation is not a linear process - there are various interconnections and feedback loops between these stages, and often even the stages themselves cannot be significantly disaggregated.
I don’t think if the phenomenon of technological innovation can become a stumbling block in prosperity of management accounting since through innovation management accounting discipline and career have been significantly improved. These areas are as follows
The Information Revolution: in early years it was cost fully to collect, analyses and store accounting information. This was because of inadequacy of infrastructures which were importantly needed for this purpose. Today information technology makes possible sophisticated database accounting systems that are both powerful and flexible in terms of the accounting information that they can collect, organize and report. Even today, however, the cost of designing, implementing, and running cost accounting systems is a substantial obstacle in many organizations; a fact probably underrepresented in business schools. Proliferation of Product Lines: This is not much matters if a company makes only one product, since many cost accounting issues can be resolved. When companies significantly expanded their product lines to gain market share and increase profits, the difficulty and importance of obtaining accurate cost information on individual products increased. Back then companies were allocating costs among products in a manner that led to poor production and marketing decisions. A management accounting tool called activity-based costing was developed to help correct this problem, by improving the accuracy with which costs are allocated among products. Globalization of the Economy:
I don’t think if the phenomenon of technological innovation can become a stumbling block in prosperity of management accounting since through innovation management accounting discipline and career have been significantly improved. These areas are as follows
The Information Revolution: in early years it was cost fully to collect, analyses and store accounting information. This was because of inadequacy of infrastructures which were importantly needed for this purpose. Today information technology makes possible sophisticated database accounting systems that are both powerful and flexible in terms of the accounting information that they can collect, organize and report. Even today, however, the cost of designing, implementing, and running cost accounting systems is a substantial obstacle in many organizations; a fact probably underrepresented in business schools. Proliferation of Product Lines: This is not much matters if a company makes only one product, since many cost accounting issues can be resolved. When companies significantly expanded their product lines to gain market share and increase profits, the difficulty and importance of obtaining accurate cost information on individual products increased. Back then companies were allocating costs among products in a manner that led to poor production and marketing decisions. A management accounting tool called activity-based costing was developed to help correct this problem, by improving the accuracy with which costs are allocated among products. Globalization of the Economy: