Management Accounting Information Properties and Operations Management

Abstract

This monograph introduces Management Accounting to Operations Management researchers and illustrates how unleashing this accounting information perspective into the world of Operations Management can improve our understanding of topics of interest to Operations Management researchers and practitioners. We start by offering a crash course in accounting terminology and then introduce the three important properties of accounting information (i.e. imperfect nature, endogenously determined, and multi-purpose). Next, we address four different areas in Operations Management: capacity acquisition and allocation, inventory management, production scheduling, and product design. For each of these areas, we describe the approaches used in Operations Management and Management Accounting and spend considerable attention on how using an accounting approach can spur progress in Operations Management.

Keywords: management accounting, operations management, capacity, inventory management, scheduling, product design, interface between management accounting and operations management

JEL Classification: M41