In this article we discuss the motivation for and role of theory in management accounting. We argue that theories in an applied field such as management accounting should provide explanations that are useful for those we study - managers, organizations and society. We evaluate the nature of...

This paper explores the relationships among cost accounting systems structure and information quality properties through an integrated framework of cost system design and use.In our framework, cost accounting systems structure is defined in terms of the level of detailed information existence,...

Despite its long history, extant research on the relations among budgetary participation, reliance on accounting performance measures (RAPM) and individual-level consequent variables remains marked by conflicting findings. To solve these conflicts, prior research has introduced variables that...

After the successful implementation of Lean manufacturing concepts at U.S. Navy Aircraft Intermediate Maintenance Depot (AIMD) Lemoore, particularly with regard to the maintenance processes for the F404 engine on the F/A-18 Hornet, these concepts have became the standard by which production...

Monroe Clock Company, a producer of electrical timers, is trying to decide how to price a new device by considering the method of overhead allocation and its impact on the cost of the household timer. The B case can be taught independently or in conjunction with the A case (UVA-C-2228), which...

Monroe Clock Company, a producer of electrical timers, is trying to decide how to price a new device by considering variable versus fixed costs, the relevance of certain costs, and information regarding capacity utilization. The A case can be taught independently or in conjunction with the B...

Tony Hamilton, brand manager for Distillers Delight in the United Kingdom, is preparing for his upcoming meeting with his boss, Charlotte Handy, managing director for the United Kingdom for Global Distillers, Inc., one of the leading companies in the alcoholic beverages industry. The purpose of...

Alex Pearson, manager of Charley's Family Steak House number two, is preparing for his upcoming meeting with Charley Turner, owner of the steak house. The purpose of the meeting is to discuss the restaurant's 2004 results, how they compared to budget, and how Pearson performed during his second...

In 2000, Breeden Electronics USA sold fewer RC1 units and more RC2 units than they had expected. Sales of RC2 units were to 18 mail-order companies that required special attention (more than required by the RC1 customers). This attention incurred unexpected costs. Marlene Baer, the controller,...

This case builds on the A case (UVA-C-2199). Marlene Baer, the controller of Breeden Electronics, recognizes that grouping all manufacturing overhead costs together and allocating them to Breeden's two products is not very accurate. She groups overhead costs by activity and then allocates them...