Management Accounting in a Dynamic Environment

By Cheryl S. McWatters, Jerold L. Zimmerman

© 2016 – Routledge

712 pages | 39 B/W Illus.

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Paperback: 9780415839020
pub: 2015-12-08
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Hardback: 9780415839013
pub: 2015-12-08
Available for pre-order
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About the Book

Whether students pursue a professional career in accounting or in other areas of management, they will interact with accounting systems. In all organizations, managers rely on management accounting systems to provide information to deal with changes in their operating environment. This book provides students and managers with an understanding and appreciation of the strengths and limitations of an organization’s accounting system, and enables them to be intelligent and critical users of the system.

The text highlights the role of management accounting as an integral part of the organization’s strategy and not merely a set of individual concepts and computations. An analytical framework for organizational change is used throughout the book to underscore how organizations must adapt to create customer and organizational value. This framework provides a way to examine and analyze the organization’s accounting system, and as a basis for evaluating proposed changes to the system.

With international examples that bring the current business environment to the forefront, problems and cases to promote critical thinking, and online support for students and instructors, Management Accounting in a Dynamic Environment is no mere introductory textbook. It prepares readers to use accounting systems intelligently to achieve organizational success.


"This text provides students a comprehensive treatment of managerial accounting concepts and tools. Topics are presented in a uniquely integrated manner with a global perspective."

- David J. Harr, Executive in Residence, Kogod School of Business, American University

"This textbook offers very useful context in terms of dynamic management accounting and appropriately takes account of the global environment within which this discipline exists. The use of running case studies and concept review questions are an excellent addition, and very useful for students to relate theory to practice and reflect on their learning."

- Alexandra Charles, Deputy Head, Department of Accounting and Finance, De Montfort University

"This book is a must have for students and academics interested in contemporary ideas and practices in management accounting. It is an excellent read and a valuable refresher even for the most aspiring practitioner."

- Rafiuddin Ahmed, College of Law, Business and Governance, James Cook University, Australia

Table of Contents

Why Accounting is Important in Organizations. Cost Behavior and Activity Costs. Measuring and Analyzing Product Costs. Managing Activities. Managing Organizations. Decentralized Organizations. Budgeting. Cost Allocations. Absorption Costing Systems. Variable Costing and Capacity Costs. Standard Costs and Variance Analysis. Short-Term Decisions and Constraints. Investment Decisions. Management Accounting In Agile Organizations. Answers to Organizational Analyses. Answers to Concepts Reviews.

About the Authors

Cheryl S. McWatters is the Father Edgar Thivierge Chair in Business History and Professor of Accounting at the Telfer School of Management, University of Ottawa, Canada. She is editor of Accounting History Review, associate editor of the Journal of Operations Management and Accounting Perspectives, and on the editorial boards of the Accounting, Auditing & Accountability Journal and the Accounting Historians Journal, among others. An award-winning author and editor, Professor McWatters has published widely in accounting, operations management, and accounting and management history.

Jerold L. Zimmerman is Professor Emeritus at the Simon School of Business, University of Rochester, USA. His co-authored research with Professor R.L. Watts, M.I.T., has received the prestigious American Accounting Association Seminal Contribution to the Accounting Literature Award. The Watts and Zimmerman research, which has come to be called ‘positive accounting theory’, seeks to understand the costs and benefits of various accounting procedures. A founding editor of the Journal of Accounting and Economics, one of the most highly cited accounting publications, Professor Zimmerman has published widely in accounting, finance, and managerial economics, including a number of textbooks in both accounting and managerial economics.

Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Accounting / Managerial