Innovation in Management Accounting: The Needs of World-Class Firms

Abstract

In this article, the main characteristics of world-class manufacturing will be considered. The world-class companies should use the newest and modern techniques in manufacturing. Flexibility in manufacturing, advanced information technology, programming and control, sketching and product innovation, organization structure, financial controls, bench marking, long range strategic plans, comprehensive quality management, and personnel active partnership in business operation and business process are considered as the main characteristics of world-class companies. In continuation, a model will be presented, on the basis of which, management accounting system can help these companies. In order to establish this model, activity based costing techniques, target costing, theory of constraint, balanced scorecard, and manufacturing on time by use of AHP process will used. It will conclude that companies managers, can increase their organization success in competitive conditions by combining modern methods.

Keywords: World-class manufacturing, Activity based costing, Target costing, Theory of constraint, Balanced scorecard, Just in time manufacturing, AHP process

JEL Classification: M40, M46, M47