New Product Development Teams and the Demand for Management Accounting Information in Manufacturing, Utilities, and the Service Industry

Abstract

This paper provides exploratory empirical evidence on the use of and demand for new management accounting systems and techniques by members of new product development teams. Many companies have shifted from a single brand manager to cross-functional teams of managers in an effort to deal effectively with competition. The 126 managers surveyed, all members of new product development Teams, represented varying functional areas in manufacturing, utilities, and the service industry. There are three primary results. First new product development team members in utilities expressed significant demand for target cost and profit detail, while mangers representing other services demanded a broad range of new management accounting information. Second, new product development team members from manufacturing reported no significant demand for more information from new management accounting systems. Third, consistent with the call for change in management accounting, all respondents desired less traditional accounting information. Finally, this paper offers several suggestions for future research.

JEL Classification: M40, M46