Top 7 Trends in Management Accounting

Top 7 Trends in Management Accounting- Trend 4 and 5 ACC501 MOD 3 Discussion Name Institution Date Trend 4: Business analytics embedded in EPM methods The Institute of Management Accountants, IMA highlights that the “business analytics embedded in EPM methods” is one of the trends in management accounting. This trend is associated with the use of statistical techniques such as regression, correlation and segmentation (IMA, 2014 a). The use of analytics in enterprise performance management is easier than before as there are different tools and programs to analyze performance using more data. There is increased interest in using predictive accounting, and business analytics. An example of this trend is when Strategy maps display strategic objectives, and the analytics is used to determine how actions and projects are affected when strategies are implemented (Cokins, 2014). Besides this correlation analysis is increasingly used to aid in decision making and analytics are important to evaluate the effectiveness of the strategic objectives. Analytics also gives companies a competitive advantage unlike before where many relied on low cost and differentiation, and these can be replicated. Trend 5: Coexisting and Improved Management Accounting Methods There are differences in perc...