Strategic Management Accounting

This chapter considers the relatively recent topic of Strategic Management Accounting (SMA). It is generally agreed that the term ‘Strategic Management Accounting’ was first coined by Simmonds (1981, p26), who defined it as ‘the provision and analysis of information about a business and its competitors for use in developing and monitoring the business strategy’. Thus, it lies at the interface between strategic management and accounting. Some have suggested that it implies accounting information which supports strategic management (SM-A) and others that it relates to all management accounting techniques which have a strategic perspective (S-MA). Whatever the exact interpretation (SMA) implies a greater contribution by accountants to strategy formulation and implementation, it suggests accountants move away from purely financial concerns to wider business issues thus maintaining the accountants role at the centre of business activity.

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1. Mike Tayles