Information technology is significantly changing the operating practices of an increasing number of companies globally. These developments have important implications for the accounting profession and in particular accounting practices in the twenty-first century. This study examines the development of enterprise resource planning (ERP) systems as a means of illustrating how changes in information technology allows all systems in a company to be linked to manage operations holistically. The study investigates the change in accounting systems using a sample of Australian companies with emphasis on the adoption of ERP systems including the potential impact of ERP on capital budgeting processes. The results show that ERP systems are changing management accounting practices, although at this stage, the impact on capital budgeting techniques appears to be limited. The findings contribute to the emerging body of literature on the development of ERP systems and its impact on management accounting teaching and research. Key words: Management accounting, capital budgeting, enterprise resource planning systems, information technology.
  1. Introduction During the past decade an increasing number of companies have been impacted by information technology in terms of computerized transaction processing and electronic telecommunications such as that done with the Internet, intranet, and extranet. For competitive reasons, companies have had to change from manual and then mainframe systems to what has been called enterprise resource planning (ERP) systems. An ERP system has a common database or data warehouse that links together all systems in all parts of a company including, for example, capital budgeting with financial, control, manufacturing, sales, fixed assets, inventory, human resources modules, etc. An ERP system, by linking all systems through a data warehouse, allows a company to manage its operations holistically. A second impact of ERP systems has been a general shift to manage at the activity level rather than at the more abstract level of financial transactions. This means that management accounting, with its focus on activities, can be most effective when it is used with ERP systems to incorporate the activity level for costing and performance measurement. To be effective an ERP system will contain an extensive chart of accounts or codes for activities such as accurate recording and tracking of activities, revenues and costs. The coding incorporates stable entities of a business, such as divisions, plants, stores, and warehouses. At a detailed level there are codes for functions such as finance, production, sales, marketing, and materials management. There are also the traditional financial account codes such as assets, liabilities, revenues, and expenses, and the central ERP feature of coding processes, activities, and sub-activities. There must be consistent coding among all parts of a company in order for them to relate to one another.
As the ERP system incorporates activities in terms of quantities of resources, including labour, a record of resource use is maintained. Therefore, performance can be measured in physical terms and compared to standards, which allows for the calculation of variances. This performance measurement at the activity level serves as a feedback system on efficiency and effectiveness. The confusion from abstract monetary measures is erased, and what is actually happening with the conversion of resources into goods and services can be seen. ERP systems have the potential to change management ccounting systems with more detailed, more integrated, and faster produced information. To date the research on the impact of ERP systems on management accounting can best be described as preliminary. It has involved case studies of one or two companies at a time and some field studies. The findings from these studies have been largely anecdotal. Also, some have been deductive in that arguments based on ERP attributes have been made on how management accounting should be affected. For instance, in a field study, Cook et al. (20
  00) described activity-based capital budgeting at a division of a US telecommunications company. The findings from Cook et al.’s field work suggests that ERP systems can increase the effectiveness of capital budgeting by anchoring financial numbers to activities rather than stopping at monetary measures with pre-ERP practices. The goal of this paper is to investigate the change in accounting systems using asample of Australian companies with emphasis on the adoption of ERP systems including the potential impact of ERP on capital budgeting processes. Prior research in the Australian environment has indicated that the economic/institutional setting is significantly different from the US and European environments as Australian companies are smaller, with fewer multinational subsidiaries and more homogenous management background in terms of culture and educational background (Matolcsy et al., 20
  05). Given these differences in the Australian environment Matolcsy et al claim that the benefits of ERP systems are likely to be more pronounced and measurable, at least in the short run in Australia. The significance of the study is its contribution to the emerging body of literature on the development of ERP systems and has the potential to provide useful contrast and/or confirmation of the limited research from mainly US based studies. Furthermore this study contributes to the body of knowledge of the impact of ERP on management accounting teaching and research using a broadly based sample of corporations in an Australian setting. In ascertaining the impact of information technology on management accounting, this paper will have the following additional sections. The second section contains a literature review of the impact of information technology on management accounting. With the literature review, the third section develops the research method and determines the sample used to ascertain the impact of ERP systems on management accounting practices of Australian companies. The fourth section will contain the findings, while the
fifth and sixth will be the discussion and conclusion, respectively. Recommendations for future research will be included in the conclusion.
  2. Literature Review
  2.1 The integration of ERP systems into management accounting Expectations for ERP systems to change management accounting were introduced by Kaplan and Cooper (1998, pp. 11-
  24), especially with the fourth of their four-stage model for cost and performance measurement systems. When a company had first stage systems, those systems were basically inadequate for all purposes, even for financial reporting. When they make improvements, the first stage companies tend to add financial systems to meet regulatory requirements. As a result, they evolve into second stage systems where financial reporting systems dominate; these companies are financial reporting driven. The companies with third stage systems have customized, managerially relevant cost management, financial reporting, and performance measurement systems, however, these systems are standalone. ERP systems only occur with the fourth stage systems where the ERP systems integrate cost management, financial reporting, and performance measurement (Kaplan and Cooper, 1998, p. 2
  99). An ERP system has a common data structure that permits data to be entered and accessed from anywhere in the world (Kaplan and Cooper, 1998, p. 2
  75). An activity-based costing system is an integral part of an ERP system, and thus managers have information about present and future activities at operational levels when making decisions (Kaplan and Cooper, 1998, pp. 275-277, 2
  85). With activity-based information, monetary distortions can be reduced. Feedback with activity information improves learning. Thus, in managing at the activity level, costing, budgeting, performance measurement, bonuses, resource spending, forecasting, budgeting, production, etc. can beimproved in terms of efficiency and effectiveness. An ERP system will allow the company to obtain cost and performance information more frequently, even daily, rather than waiting a month (Kaplan and Cooper, 1998, p. 2
  79). Kaplan and Cooper (1998, pp. 301-3
  06) state that the integration with ERP systems allow all managerial processes, including budgeting, what-if analysis, and transfer pricing to be also based on activities rather than only dollars. Activity-based budgeting gives companies the opportunity to authorize and control resources based on accurate demand information. Accuracy increases because activity-based budgeting is based on facts, and less upon power, influence, and negotiating ability. Furthermore, the activity-level focus of budgeting leads to more accuracy in forecasting the demands for all direct and, especially indirect activities. At the same time as Kaplan and Cooper’s (19
  98) important book, Davenport (1998, p. 1
  22) wrote “the business world’s embrace of enterprise systems may in fact be
the most important development in the corporate use of information technology in the 1990s.” Davenport (1998, p. 1
  27) expected companies to change with the implementation of ERP systems: In addition to having important strategic implications, enterprise systems also have a direct, and often paradoxical, impact on a company’s organization and culture. On the one hand, by providing universal, real-time access to operating and financial data, the systems allow companies to streamline their management structures, creating flatter, more flexible, and more democratic organizations. On the other hand, they also involve the centralization of control over information and the standardization of processes, which are qualities more consistent with hierarchical, command-and-control organizations with uniform cultures. The paradox with ERP systems ? streamlined, flatter, and more flexible and democratic (i.e., more control at the frontline) and centralization of control over information and the standardization of processes (i.e., more control at the centre) -- makes Davenport (1998, p. 1
  31) ask how will ERP systems affect companies? Another equally relevant question would be, how will ERP systems affect management accounting? Taken together, Kaplan and Cooper (19
  98) and Davenport (19
  98) suggest that ERP systems will change companies, but these researchers do not specify the nature of these changes. They certainly do not explicitly specify how ERP systems will impact on management accounting. Nevertheless, it is possible to infer that changes will occur to management accounting from the integration among cost management, financial reporting, performance measurement, and all other systems. Thus, it is not surprising that there has been some exploratory research prompted by Kaplan and Cooper (19
  98) and Davenport (19
  98) on the impact of ERP systems on management accounting. application of ERP systems ? capital budgeting. (和前面是一句吗?) As previously outlined, a field study conducted by Cook et al. (20
  00), described the operation of activity-based capital budgeting as a division of a US telecommunications company. In their study Cook et al. found that the activity information was linked to the financial accounting system, thus behaving like an ERP system for the purpose of capital budgeting. This approach went beyond the traditional capital budgeting by linking the traditional incremental monetary revenues and costs with underlying activities. The authors concluded that by separately identifying the level of revenues and costs associated with process activities, the uncertainty with such activities and related revenues and costs can be closely examined. They added that this activity-level capital budgeting gives managers far more information and understanding than possible from the traditional financial simulation of aggregated income-statement approach. Their arguments were convincing but could not be verified.
Hope and Fraser (2001; 20
  03) disclosed that some companies have ceased traditional budgeting processes. Four reasons have been put forward by Hope and Fraser (20
  01) as to why existing budgeting processes are failing: - few companies are satisfied with their budgeting processes - far too much time is spent on budgeting and too little time is spent on strategy - Financial capital is now a small part of market value - Budgeting is expensive and adds little value either to the company or its users (Hope and Fraser, 2001, pp. 7-
  8). They claimed that hierarchical companies have devolved to networks, where the planning capacity and control inherent in budgeting can be accomplished by other means (Hope and Fraser, 2003, p. 1
  08). ERP systems, which they label enterprise-wide information systems, are important for eliminating budgeting, particularly when accompanied by the balanced scorecard, shareholder value models such as EVA, activity-based costing and management, rolling forecasts, and benchmarking (Hope and Fraser, 2001, pp. 5-
  6). Some of the companies identified by Hope and Fraser (20
  03) -- for example, the Scandinavian bank, Svenska Handelsbanken, -- abandoned budgeting before ERP systems. This suggests that, for those companies, ERP systems would not have been essential for effectiveness without budgeting. Perhaps, ERP systems will allow contemporary companies, with ERP system, to be effective without budgeting. The impact
 

相关内容

商务英语论文范文

   Information technology is significantly changing the operating practices of an increasing number of companies globally. These developments have important implications for the accounting profession and in particular accounting practices in the twent ...

商务英语毕业论文范文(无忧论文网)

   信用证软条款研究 引 言 一、信用证软条款的基本理论 引 子 (一)信用证软条款的基本概念 (二)信用证软条款产生的原因 (三)信用证软条款的性质分析 二、 信用证软条款的识别及分类 (一)信用证软条款的识别 (二)信用证软条款的分类 三、信用证软条款的效力分析 (一) 信用证软条款的效力比较分析 1、信用证软条款与“附条件”的法律文件 2、信用证软条款与信用证欺诈 3、信用证软条款和信用证诈骗及合同诈骗 4、信用证软条款与信用证的可撤销性 (二)国际商会及中国对信用证软条款效力的态度 四、 ...

商务英语论文选题

   商务英语选题参考 商务英语选题参考 商务英语选题参考 最牛英语口语培训模式:躺在家里练口语,全程外教一对一,三个月畅谈无阻! 最牛英语口语培训模式:躺在家里练口语,全程外教一对一,三个月畅谈无阻! 太平洋英语,免费体验全部外教一对一课程 体验全部外教一对一课程: 太平洋英语,免费体验全部外教一对一课程:http://www.pacificenglish.cn 1) The Influence of Cultural Elements on the Translation of the idi ...

商务英语论文参考文献格式毕业

   英文参考书 基本格式为: [序号]著者.书名.其他责任者(如编者、译者)版本.出版地:出版者,出版年:起止页码. 书名用斜体,文章名用正体,所载杂志名用斜体。 [1] 一个人撰写的著作:作者的姓在前,名在后 Swell, Arthur. Katherine MansfieldA Critical Essay [C]. New Zealand: Unicorn Press, 1936:77-78. [2]两人撰写的著作:其中第二位作家姓名不用颠倒 Leech, Geoffrey. and M. ...

英语作文范文

   关于中国人口老龄化问题 1.人口老龄化问题正困 1.人口老龄化问题正困 扰着中国. 2.人口老龄化带来的问 2.人口老龄化带来的问 题. 3.应采取怎样的措施, 3.应采取怎样的措施, 谈谈自己的观点 关键词: 关键词: 人口老龄化 Population old age 人口负担 Population burden 老年社会保障 Old age social security 可持续发展 Sustainable development . Aging of Population in ...

英语论文范文

   How to improve your English in full detail (my experience) The Third Edition To be good at English is not particularly easy but not terribly hard either. Before you start to learn sentences, or new words, the first and also the most important step ...

英语论文范文3

   本科毕业论文 Noticing in SLA 小二号 Times New Roman 加粗居中顶页眉) 加粗居中顶页眉) 居中顶页眉 ( (空一行) Abstract: This article focuses on the role of “noticing” and “noticing the gap” in second language acquisition. It is argued that this notion has gained wide support on the ...

科技英语论文范文

   ON-LINE DIAGNOSIS OF MARINE DIESEL CRANKSHAFT CRACK BASED ON MAGNETIC MEMORY" LI HAN-LIN, LIN JIN-BIAO, CAI ZHEN-XIONG, LU YONG (Marine Engineering Institute, Jimei University, Xiamen, Fujian 361021) Abstract: This paper summarized recent diagnosis ...

大学英语议论文范文

   大学英语议论文范文 【大学英语议论文范文】 The politics of protest(布迪厄) Pierre Bourdieu has become a leading figure in the radical movements that have swept Franc e in the last few years. He talked to Kevin Ovenden about anti-capitalism and resistance The Weight of the ...

商务英语专业毕业论文选题

   商务英语专业毕业论文选题 一、论文写作目的: 毕业论文是商务英语专业教学计划的最后一个环节,也是对学生 2 年半学期各门课程学 习效果的检查.其主要目的是: 1、培养学生的英语阅读、写作能力及运用商务知识分析问题和解决问题的能力,达到学 以致用的目的。 2、检查学生对所学专业理论知识和基本技能的掌握程度,并将论文成绩作为学生能否毕 业的主要依据之一。 3、训练学生搜集运用资料的技能,同时培养学生理论联系实际,增强独立思考问题和解决 问题的能力。 二、 论文写作要求: 1、以英文/汉语完成论文 ...

热门内容

2010 英语竞赛初赛C级答案 2010 National English Contest for College Students

   2010 National English Contest for College Students Part I Listening Comprehension (25 minutes, 30 points) Section A Short Conversations (6 points) Directions: In this section, you will hear 6 short conversations. At the end of each conversation, a ...

七年级英语(仁爱版)下册复习教案

   七年级英语(仁爱版) 七年级英语(仁爱版)下册复习教案 Unit 5 Our School Life Topic 1 How do you usually go to school ? 任务形学习目标: 任务形学习目标: 1. 掌握并能熟练运用表达交通方式的句型。 掌握并能熟练运用表达交通方式的句型。 2. 掌握频度副词的表达方式。 掌握频度副词的表达方式。 3. 掌握一般现在是的用法。 掌握一般现在是的用法。 重点词语: 重点词语 1.兼类词:early walk 2.多意词:by 乘车 ...

40天攻克大学英语四级?核心词汇分册

   《40天攻克大家英语四级》 声明:本书由【淘书客】-WWW.taoshuke.cn自网络收集整理制作,版权归原作者和出版社所有,如果喜欢,请支持订阅购买正版. Unit 1 攻克堡垒(Day1-10)Day 1 1. alter [5C:ltE] What do people think of the suggestion of using nuclear weapons to alter the course of asteroids?(2002.6) 【全真 ...

英语的未来

   英语的未来 1 在 16 世纪中叶, 有四五百万人说英语, 说英语的人数在欧洲的语言中名列第五。 前四位依次是法语、德语、意大利语和西班牙语。俄语排在英语之后。两百年以后, 意大利语排名落后,而俄语的排名靠前了,英语依然处于第五位。到了 18 世纪末, 英语的地位开始上升。到 19 世纪中叶,英语已经跻身于第一位了。今天,英语的地 位遥遥领先,说英语的人数可能达到说后两种语言,即俄语和德语人数的总和。 2 今天到底有多少人说英语?这个问题难以回答。 除了把英语作为母语的人以外, 还有一些人虽 ...

英语中考重点句型、短语大盘点

   武汉教育资源网 www.wh111.com 资料最新最精 [短语,词组归纳] 短语, 词组归纳] 由动词开头构成的短语,词组很多.复习时应分类处理: 一,动词+介词 1.look at…看…, look like … 看上去像……, look after …照料… 2.listen to…听…… 3.welcome to…欢迎到…… 4.say hello to …向……问好 5.speak to…对……说话 此类短语相当于及物动词,其后必须带宾语,但宾语无论是名词还是代词,都要放在介 词之 ...