22705 Management Planning and Control

This subject examines the role of management accounting in organisations and society. The 'conventional wisdom' in management views accounting as an information system which assists managers in organisational planning and control, when, in fact, its role is to increase the effectiveness and efficiency of organisations. Functionalist theory of accounting such as activity-based costing, agency theory and contracting cost theory are considered. In recent years, there has been increasing criticism of mainstream functionalist accounting research because of its inability to provide an adequate understanding of the actual functioning of accounting in organisations. The subjects also looks at recent accounting studies which have attempted to redress this deficiency by locating accounting in its organisational, societal and historical contexts.