Handbooks of management accounting research v1

Handbook of Management Accounting Research
Volume 1


This page intentionally left blank


Handbook of Management Accounting Research
Volume 1

Edited by
CHRISTOPHER S. CHAPMAN
University of Oxford, UK

ANTHONY G. HOPWOOD
University of Oxford, UK

MICHAEL D. SHIELDS
Michigan State University, USA

AMSTERDAM – BOSTON – HEIDELBERG – LONDON – NEW YORK – OXFORD
PARIS – SAN DIEGO – SAN FRANCISCO – SINGAPORE – SYDNEY – TOKYO


Elsevier
The Boulevard, Langford Lane, Kidlington, Oxford OX5 1 GB, UK
Radarweg 29, PO Box 211, 1000 AE Amsterdam, The Netherlands
First edition 2007
Copyright r 2007 Elsevier Ltd. All rights reserved
No part of this publication may be reproduced, stored in a retrieval system

or transmitted in any form or by any means electronic, mechanical, photocopying,
recording or otherwise without the prior written permission of the publisher
Permission may be sought directly from Elsevier’s Science & Technology Rights
Department in Oxford, UK: phone (+44) (0) 1865 843830; fax (+44) (0) 1865 853333;
email: Alternatively you can submit your request online by
visiting the Elsevier web site at and selecting
Obtaining permission to use Elsevier material
Notice
No responsibility is assumed by the publisher for any injury and/or damage to persons
or property as a matter of products liability, negligence or otherwise, or from any use
or operation of any methods, products, instructions or ideas contained in the material
herein. Because of rapid advances in the medical science, in particular, independent
vertification of diagnoses and drug dosages should be made
ISBN-13:
ISBN-10:
ISBN-13:
ISBN-10:

978-0-08-044564-9 (Volume 1)
0-08-044564-0 (Volume 1)
978-0-08-045340-8 (Volumes 1+2)
0-08-045340-6 (Volumes 1+2)

For information on all Elsevier publications
visit our website at books.elsevier.com

Printed and bound in The Netherlands
07 08 09 10 11 10 9 8 7 6 5 4 3 2 1

Contents

Contributors to Volume 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

vii

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ix

THE SCOPE OF THE MANAGEMENT ACCOUNTING RESEARCH LITERATURE
1.

2.

Management Accounting: A Bibliographic Study
James W. Hesford, Sung-Han (Sam) Lee, Wim A. Van der Stede and
S. Mark Young . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

Mapping Management Accounting: Graphics and Guidelines for Theory-Consistent
Empirical Research
Joan Luft and Michael D. Shields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27

THEORETICAL PERSPECTIVES
3.

4.

5.

6.

7.

8.

9.

Theorizing Practice in Management Accounting Research
Thomas Ahrens and Christopher S. Chapman . . . . . . . . . . . . . . . . . . . . . . .

99

Psychology Theory in Management Accounting Research
Jacob G. Birnberg, Joan Luft and Michael D. Shields . . . . . . . . . . . . . . . . .

113

Economics in Management Accounting
Michael Bromwich . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

137

Theorising Contingencies in Management Control Systems Research
Robert H. Chenhall . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

163

Critical Theorising in Management Accounting Research
David J. Cooper and Trevor Hopper . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

207

Agency Theory and Management Accounting
Richard A. Lambert . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

247

Historical Theorizing in Management Accounting Research
Joan Luft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

269
v


vi
10.

Management Accounting and Sociology
Peter Miller . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

285

RESEARCH METHODS
11.

Doing Qualitative Field Research in Management Accounting: Positioning Data to
Contribute to Theory
Thomas Ahrens and Christopher S. Chapman . . . . . . . . . . . . . . . . . . . . . . .

299

Doing Quantitative Field Research in Management Accounting
Shannon W. Anderson and Sally K.Widener . . . . . . . . . . . . . . . . . . . . . . . .

319

Comparative Management Accounting Research: Past Forays and Emerging
Frontiers
Alnoor Bhimani . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

343

Analytic Modeling in Management Accounting Research
Joel S. Demski . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

365

There and Back Again: Doing Interventionist Research in Management Accounting
Sten Jo¨nsson and Kari Lukka . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

373

Doing Archival Research in Management Accounting
Frank Moers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

399

Experimental Research in Managerial Accounting
Geoffrey B. Sprinkle and Michael G. Williamson . . . . . . . . . . . . . . . . . . . .

415

Doing Management Accounting Survey Research
Wim A. Van der Stede, S. Mark Young and Clara Xiaoling Chen . . . . . . . .

445

Author Index for Volumes 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A-1

Subject Index for Volumes 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

S-1

12.

13.

14.

15.

16.

17.

18.


Contributors to Volume 1
Thomas Ahrens
Shannon W. Anderson
Alnoor Bhimani
Jacob G. Birnberg
Michael Bromwich
Christopher S. Chapman
Clara Xiaoling Chen
Robert H. Chenhall
David J. Cooper
Joel S. Demski
James W. Hesford
Trevor Hopper
Sten Jo¨nsson

Richard A. Lambert
Sung-Han (Sam) Lee
Joan Luft
Kari Lukka
Peter Miller
Frank Moers
Michael D. Shields
Geoffrey B. Sprinkle
Wim A. Van der Stede
Sally K. Widener

Michael G. Williamson
S. Mark Young

vii


This page intentionally left blank


Preface
Researching the practice of management accounting is challenging and interesting, because management
accounting is a set of practices that are often loosely coupled to one another and varying across both time and
space. A variety of ways of researching management accounting practice also have emerged, changed over
time, and have been diffused unevenly around the world. Even management accounting terminology is neither
uniform nor constant, with the term ‘‘management accounting’’ itself seemingly appearing in the 1930s and
1940s in America after many of the individual practices had already emerged.
Focussing on facilitating economic decision-making and the wider planning and control of organizations,
the practices of management accounting have tended to have separate trajectories of development and modes
of organizational functioning, thus making management accounting a loosely coupled set of fragmented
practices. Costing and its various derivatives, capital and operational budgeting, internal financial (and increasingly non-financial) performance measurement, transfer pricing between the subunits of an organization,
and organization-wide financial planning and control systems can all be subsumed under the mantel of
management accounting, although what practices are considered to be management accounting and, indeed,
what other fields management accounting is considered to be related to varies around the world. In Sweden,
for instance, budgeting is considered as a component of general management rather than accounting, and
certainly in Japan and in some countries of Continental Europe, cost accounting is considered as having more
to do with engineering than a more narrowly conceived accounting. Indeed, cost engineering is a recognized
term in Japan. However, although until now these separate management accounting practices have often been
loosely coupled, developments in information systems may be requiring and enabling a much greater degree of
integration with other practices in and between organizations. Costing systems are increasingly a part of
enterprise-wide planning and control systems. Budgeting, in turn, is increasingly a part of strategic and

operational planning, thereby becoming a component in a wider complex of systems and practices geared to
organizational coordination and development. Similarly, performance measurement increasingly is being expanded to include non-financial measures and integrated with strategy. But interestingly, such trends, in turn,
often stimulate the development of more ad-hoc local elaborations of these practices as employees at a variety
of organizational levels seek to relate their own information needs to their local circumstances and requirements. So paradoxically, processes of integration can set into motion counter processes of disintegration and
fragmentation. In this way, management accounting can take on a variety of forms and produce different
information as decision contexts, organizational assumptions, and time horizons that change in time and
space. More informal information flows attuned to a variety of information needs can reside alongside the
structures of more centralized and standardized management accounting practices.
These developments may be part of a much more general diffusion of economic calculation throughout
organizations. What might in some countries have been the preserve of the accountant is increasingly becoming a significant part of the functioning of the marketing manager, the operations manager, the research
manager, those responsible for strategy, for product design, and so on. Management accounting is in the
process of becoming a much more dispersed practice because in organizations today economic information
and calculation appear to be permeating all of their key management processes.
Faced with such changes and developments, it is hardly surprising that there is an interest in the state of
systematic knowledge in the field of management accounting and in the research processes that develop this
knowledge. To satisfy that interest is the aim of the Handbook of Management Accounting Research.
Systematic enquiries into what is now known as management accounting have a long history, particularly in
Continental Europe, but by research as we now know it is largely the product of the twentieth century,
particularly the latter half of it. Key pioneering enquiries were made as part of the development of economic
theories of cost accounting and controllership in Austria, Germany, and Italy in the earlier part of the
twentieth century, and the school of costing associated with the London School of Economics in the 1930s was
particularly influential. In the USA there were related attempts to explore the nature of cost accounting and
ix


x
controllership practice from an economic perspective, not least with respect to understanding the design and
functioning of costing in a regulatory context. However, it was largely with the growth of research-oriented
business schools and departments of business administration in the 1960s that management accounting research received its greatest impetus.
Varying by country and changing over time, the business school and related departmental arrangements

provided an interdisciplinary setting for the systematic analysis of management accounting. Economics and
quantitative analysis provided the most influential initial frameworks for doing this but over time other
disciplines represented in these academic settings were also drawn upon to investigate the nature and functioning of management accounting in organizations. In the USA, psychology was initially the most influential
but organization theory also came to play a role. In Australia and Europe organizational and sociological
approaches have been more prevalent, providing a basis for exploring ways in which management accounting
relates to wider organizational designs and influences and shapes wider cultural and social forces.
After two initial chapters in Volume 1 of the Handbook which provide a bibliographic and a substantive
review of the management accounting research literature, the next several chapters review research on management accounting practices that are motivated by or viewed from the lens of various theoretical perspectives.
Detailed discussions are given in the ways in which theories from economics, history, organizational studies,
psychology, and sociology have analysed and influenced management accounting research and our understanding of management accounting practices. Within economics, separate consideration is given to the
influential role played by agency theoretic perspectives in recent times. Recognizing the wide array of perspectives available within organization theory, separate analyses are provided of contingency theories of
management accounting and control systems and more recent attempts to understand the functioning of
management accounting in organizations as a form of practice. At the sociological level, a separate discussion
of critical theorizing is included.
The remainder of Volume 1 of the Handbook is devoted to a consideration of different research methods
used in management accounting research. Detailed attention is given to qualitative and quantitative research
approaches, cross-country comparative research, and interventionist research. Other chapters provide focussed discussions of analytical modelling, archival research, experimental research, and survey methods.
The chapters in Volume 2 provide insights into research on different management accounting practices.
These practices include costing, such as activity-based costing, managing costs, and target costing, as well as
practices related to organizational planning and control, including financial accountability, budgeting, transfer
pricing, and performance measurement. Chapters in Volume 2 also review particular issues associated with the
design and functioning of management accounting in the special contexts of health-care and manufacturing
organizations. Although obviously far from comprehensive, these latter reviews nevertheless serve to alert us
to the importance of designing and operating information systems in particular organizational contexts. Their
partiality also reflects the limits of existing research in the area. There is a paucity of research which addresses
the specialized needs of many important sectors of the economy including retail, the service sector, media and
communications industries, and so on. A further chapter in this section of the Handbook addresses research
issues associated with the functioning of management accounting in interorganizational contexts, an increasingly important topic now that there is a much more active management of supply chains.
Volume 2 of the Handbook concludes with a review of research on how management accounting practice
and research varies around the world. Once again this is far from comprehensive, the gaps largely reflecting the

limitations of existing research and literatures. Be that as it may, consideration is given to management
accounting in many countries: China, Europe (Britain, Germanic, Nordic, and Latin), Japan, and the USA.
Taken as a whole, the two volumes of this Handbook identify the enormous scale and scope of managementaccounting research. A great deal has been achieved. The task of researching management accounting practices nevertheless remains challenging and interesting. Many of the chapters conclude with agendas for future
research. Research on management accounting practice is a moving target as its economic, organizational, and
societal contexts continues to change across space and time. New sectors emerge with new information
challenges. Organizational designs and strategies continue to be modified. Technical advances in information
processing provide the ever new possibilities. Regulatory agencies demand different flows of information, in
different ways with different timings. Management accounting practice is increasingly dynamic, with its
knowledge bases changing and seemingly remaining ever incomplete. The need for research on managementaccounting practices will certainly remain and continue to be challenging and interesting.


xi
In conclusion, we would like to thank the many researchers and chapter authors who have made this
Handbook possible. These authors have put in an enormous amount of work despite having to operate to very
tight time deadlines. We would also like to thank Takamasa Fujioka for all his help in producing the
manuscript. Finally, we gratefully acknowledge the support provided by Elsevier and particularly by Sammye
Haigh and Mary Malin.
Christopher S. Chapman
University of Oxford
Anthony G. Hopwood
University of Oxford
Michael D. Shields
Michigan State University


OVERVIEW OF VOLUMES 1 AND 2

THE SCOPE OF THE MANAGEMENT ACCOUNTING RESEARCH LITERATURE
1.1.

1.2.

Management Accounting: A Bibliographic Study
James W. Hesford, Sung-Han (Sam) Lee, Wim A. Van der Stede and
S. Mark Young . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mapping Management Accounting: Graphics and Guidelines for Theory-Consistent
Empirical Research
Joan Luft and Michael D. Shields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3
27

THEORETICAL PERSPECTIVES
1.3.
1.4.
1.5.
1.6.
1.7.
1.8.
1.9.
1.10.

Theorizing Practice in Management Accounting Research
Thomas Ahrens and Christopher S. Chapman . . . . . . . . . . . .
Psychology Theory in Management Accounting Research
Jacob G. Birnberg, Joan Luft and Michael D. Shields . . . . . . .
Economics in Management Accounting
Michael Bromwich . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Theorizing Contingencies in Management Control Systems Research
Robert H. Chenhall . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Critical Theorizing in Management Accounting Research
David J. Cooper and Trevor Hopper . . . . . . . . . . . . . . . . . .
Agency Theory and Management Accounting
Richard A. Lambert . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Historical Theorizing in Management Accounting Research
Joan Luft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Management Accounting and Sociology
Peter Miller . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

..............

99

..............

113

..............

137

..............

163

..............

207

..............

247

..............

269

..............

285

RESEARCH METHODS
1.11.

1.12.
1.13.
1.14.
1.15.

1.16.

Doing Qualitative Field Research in Management Accounting: Positioning Data to
Contribute to Theory
Thomas Ahrens and Christopher S. Chapman . . . . . . . . . . . . . . . . . . . . . . . .
Doing Quantitative Field Research in Management Accounting
Shannon W. Anderson and Sally K.Widener . . . . . . . . . . . . . . . . . . . . . . . . .
Comparative Management Accounting Research: Past Forays and Emerging Frontiers
Alnoor Bhimani . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Analytical Modeling in Management Accounting Research
Joel S. Demski . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

There and Back Again: Doing Interventionist Research in Management
Accounting
Sten Jo¨nsson and Kari Lukka . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Doing Archival Research in Managerial Accounting
Frank Moers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

..

299

..

319

..

343

..

365

..

373

..

399

Overview of Volumes 1 and 2

1.17.
1.18.

Experimental Research in Management Accounting
Geoffrey B. Sprinkle and Michael G. Williamson . . . . . . . . . . . . . . . . . . . . . . . .
Doing Management Accounting Survey Research
Wim A. Van der Stede, S. Mark Young and Clara Xiaoling Chen . . . . . . . . . . . . .

415
445

MANAGEMENT ACCOUNTING PRACTICES
2.1.

2.2.
2.3.
2.4.
2.5.
2.6.
2.7.

2.8.
2.9.
2.10.

2.11.

2.12.

2.13.

Managing Costs and Cost Structure throughout the Value Chain: Research on Strategic Cost
Management
Shannon W. Anderson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Target Costing: Uncharted Research Territory
Shahid Ansari, Jan Bell and Hiroshi Okano . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost and Profit Driver Research
Rajiv D. Banker and Holly Hanson Johnston . . . . . . . . . . . . . . . . . . . . . . . . . .
Analytical Modeling of Cost in Management Accounting Research
John Christensen and Thomas Hemmer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer Pricing: The Implications of Fiscal Compliance
Martine Cools and Clive Emmanuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Budgeting Research: Three Theoretical Perspectives and Criteria for Selective Integration
Mark Covaleski, John H. Evans III, Joan Luft and Michael D. Shields . . . . . . . . . .
Management Control of the Complex Organization: Relationships between Management
Accounting and Information Technology
Niels Dechow, Markus Granlund and Jan Mouritsen . . . . . . . . . . . . . . . . . . . . .
A Review of Activity-Based Costing: Technique, Implementation, and Consequences
Maurice Gosselin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
An Economic Perspective on Transfer Pricing
Robert F. Go¨x and Ulf Schiller . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A Review of the Literature on Capital Budgeting and Investment Appraisal: Past, Present,
and Future Musings
Susan F. Haka . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Management Accounting and Operations Management: Understanding the Challenges from
Integrated Manufacturing
Allan Hansen and Jan Mouritsen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A Review of Quantitative Research in Management Control Systems and
Strategy
Kim Langfield-Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A Review of the Literature on Control and Accountability
Kenneth A. Merchant and David T. Otley . . . . . . . . . . . . . . . . . . . . . . . . . . . .

481
507
531
557
573
587
625
641
673
697
729
753
785

MANAGEMENT ACCOUNTING PRACTICE CONTENTS
2.14.

2.15.

2.16.

2.17.

Accounting and Control in Health Care: Behavioural, Organisational, Sociological and

Critical Perspectives
Margaret A. Abernethy, Wai Fong Chua, Jennifer Grafton and
Habib Mahama. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Management Accounting in the Manufacturing Sector: Managing Costs at the Design and
Production Stages
Tony Davila and Marc Wouters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Management Accounting and Control in Health Care: An Economics
Perspective
Leslie Eldenburg and Ranjani Krishnan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounting in an Interorganizational Setting
Ha˚kan Ha˚kansson and Johnny Lind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

805
831
859
885


Overview of Volumes 1 and 2

MANAGEMENT ACCOUNTING AROUND THE WORLD
2.18.
2.19.
2.20.
2.21.
2.22.
2.23.
2.24.

The History of Management Accounting in France, Italy, Portugal, and Spain

Salvador Carmona . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Management Accounting Practices in the People’s Republic of China
Chee W. Chow, Rong-Ruey Duh and Jason Zezhong Xiao . . . . . . . . . . . .
The Development of Cost and Management Accounting in Britain
Trevor Boyns and John Richard Edwards . . . . . . . . . . . . . . . . . . . . . . .
Management Accounting Theory and Practice in German-Speaking Countries
Ralf Ewert and Alfred Wagenhofer . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The History of Management Accounting in the U.S.
Richard Fleischman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Development of Cost and Management Accounting Ideas in the Nordic Countries
Salme Na¨si and Carsten Rohde . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A History of Japanese Management Accounting
Hiroshi Okano and Tomo Suzuki . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.....

905

.....

923

.....

969

.....

1035

.....

1071

.....

1091

.....

1119


This page intentionally left blank


The Scope of the Management Accounting Research
Literature


This page intentionally left blank


Theoretical Perspectives


This page intentionally left blank


Research Methods

This page intentionally left blank


Subject Index for Volumes 1 and 2

accounting
accounting feedback, and individuals’ cognitive
style 114
Accounting Information System (AIS) 7
Accounting, Organizations and Society (AOS) 5,
18–25
and control in health care see under health care
accounting and control
in the emergence of business objectives
106
and organisational processes, relationship between
102–106
programmatic character of 101
temporary assemblages of systems of 102
activity-based costing (ABC), technique,
implementation, and consequences 557, 631,
641–66
after the year 2000 649
descriptive research on 650–56
diffusion of ABC, exploratory and explanatory
research on 656–61
adoption and the implementation, contextual
and organizational factors influencing

656–58
ambidextrous model 660–61
diffusion of innovations 658–59
dual-core model 659–60
mechanistic and organic organizations 659
variables that influence the attainment of stage
658
evolution, from transaction costs to time-driven
ABC 642–49
early activity-based costing (ABC) model
642–43
from 1995 to 2000s 648–49
implementation, success determinants of
661–62
innovation process for ABC, stages 660

adoption stage 660
implementation stage 660
preparation stage 660
routinization stage 660
literature on 643–44
in the early 1990s 644–45
number of articles on 644
number of papers on 644
organizational and social consequences of
662–66
ABC and fads and fashions in management
accounting 663–65
ABC and the role of management accountants
665

consulting activities and ABC 665–66
fad theories 664
from manufacturing cost accounting to cost
management 665
impact of ABC on organizational performance
663
new cost accounting (management) logic
665
organizational learning and ABC 666
rational efficiency theories 664
relevance recovery of management accounting
665
research on the diffusion of 649–62
survey findings 655–56
surveys published from 1990 to 1994 650–52
surveys published from 1995 to 2000 652–54
surveys published from 2001 to 2005 654–55
see also activity-based management (ABM)
activity-based management (ABM) 645–46
cost drivers 647
executional cost drivers 647
structural cost drivers 647
deconstructing ABC 646–48
levels of 647
S-1


Subject Index for Volumes 1 and 2
number of articles on 646
activity analysis 647

activity cost analysis 647
full ABC 647
pilot ABC 647
actor network theory (ANT) 102–103, 106
Latour’s notion of 104
advanced manufacturing technology (AMT)
177
advanced pricing agreement (APA) 577
agency theory and management accounting 36,
152–54, 191–92, 247–66
basic agency model, setup 248–50
characterizing the optimal contract 252–53
common misconceptions about 264–65
communication, earnings management, and the
revelation principle 260–61
see also ratchet effect
complexity of 250–52
first-order-condition approach 250–51, 253
construction, philosophy 249
contact shape 254–60
bonus contract, common structure for 259
Holmstrom characterization of the contract
255
linear contract (restricted stock)versus stock
option contract 258
linear versus nonlinear contracts 256–60
see also Monotone Likelihood Ratio Property
(MLRP)
multiperiod models and investment problems
261–64

multiperiod models 249
performance measures, important qualities of
253–54
congruity 253
sensitivity 253
single–period model 248
see also plain vanilla, principal–agent model
ambidextrous model 660–61
analytic modeling, in management accounting
research 365–70, 597
background remarks 365–67
dominant themes in the literature 369–70
contracting approach 369
hyper-rationality 369
performance evaluation 369
keys to good modeling 367–69
primacy of the research question 367–68
proper preparation of the model 368–69
Ralph test 369
see also Blackwell theorem; theory of aggregation;
Revelation principle
Annales school 271, 275
S-2

archival research and archival data 399–402
advantages and disadvantages of 401
definitions 399–400
main topics addressed using 401–402
proprietary data 400–401
firm internal data 401

third-party surveys 400–401
public data 400
publicly available archival data 400
bonus plan data 400
compensation data 400
financial statement data 400
industry-specific data 400
types 400
archival research in management accounting 399–411
accounting information role 409–410
to address research question 403–407
bonus compensation 406
Book-to-Market ratio 406–407
compensation, definition 403–404
incentive weights, measurement 404–406
predictive validity framework 404
sensitivity and precision measurement 406–407
archival research and archival data 399–402
see also under archival research and archival
data
dominant research question 402–403
equity compensation 407–409
executive compensation 410–11
article characteristics
article citation patterns 16
see also under article citation patterns
cross-tabulation of methods and topics 12
research methods
by method 12
by topic 12

article citation patterns 16
by research method 16
by source discipline 16
by topic 16
article classification 6–9
cost and control basis in 6
see also control allocation articles; cost
allocation articles
methods 7–9
analytical 7
archival 7
case studies 7
experiment 7
field studies 7
framework studies 7
management accounting research topics 8
management accounting source disciplines 8–9
review articles 7


Subject Index for Volumes 1 and 2
source disciplines 9
see also under source disciplines
survey articles 7
topics 6–7
aspiration theory, level of 117–18
attributable cost concept 148
attribute and event variables, distinction between
56–58
attribution theory 120–21

authoring characteristics 15
articles 15
authors 15
journals 15
methods 15
source disciplines 15
topics 15
back flush accounting concept 742
balanced scorecard (BSC) 5, 631
Bayes’ theorem 124
behavioral decision theory 124–28
probabilistic judgment 124
behavioural accounting 288
Behavioral Research in Accounting (BRIA) 3–6,
10–14, 19, 24
benchmarking 7
Black-Scholes value 251
Blackwell theorem 366
Britain, cost and management accounting (C/MA)
development in 969–1023
accounting as an instrument of management 970
C/MA literature 979–92
see also under C/MA literature
C/MA practice c.1870–c.1970 1002–1021
see also under C/MA practice c.1870–c.1970
C/MA practice to c.1870 994–1002
cost and profit calculations 994–97
cost and profit calculations, uses 997–1002
depreciation 995
imputed interest 995–96

overhead cost apportionment 996
transfer pricing and departmental profits
996–97
C/MA practice 992–94
accounting information systems structure
993–94
contextualising the development of 970–79
business size and organisational structure 975
change agents, as institutions 978–79
change agents, individuals and firms as 976–78
competition and market demand 976
diverse theoretical standpoints 970–72
factors affecting the development 974
historians in discord 970–73

questioning conventional wisdoms 972–73
sites for the practice of 973–74
strategy 976
technology 975–76
control, in C/MA practice to c.1870 1000–1002
actual costs and profits, calculation 1001–1002
estimates of actual costs and profits 1000–1001
return on investment 1002
decision making, in C/MA practice to c.1870
998–1000
discounted cash flow 1000
fixed and variable costs 998–99
strategic decision making 999–1000
planning, in C/MA practice to c.1870 997–98
budgeting 998

standards and trials 997–98
theory and practice, relationship between
1021–23
post-‘costing renaissance’ period 1022–23
pre-‘costing renaissance’ period 1021–22
budget emphasis and participative budgeting 39
budgeting process 120
budget-induced pressure 122
stress in 121
budgeting research, theoretical perspectives and
criteria for selective integration 587–621
economic perspective on budgeting 592–601
see also under economic perspective on
budgeting
historical development 588–90
sociology-based budgeting literature 589
psychology-based research on budgeting 601–606
see also under psychology-based research on
budgeting
selective integration in budgeting research 612–21
see also under selective integration in budgeting
research
sociology perspective on budgeting 606–612
see also under sociology perspective on
budgeting
theoretical perspectives, summary matrix 590–92
budgeting research across three social science
theoretical perspectives, comparison of
591–92
C/MA literature 979–92

absorption costing and the determination of ‘true’
costs 984–85
cost and financial accounts, relationship between
985–87
costing as an aid to management 987–92
budgetary control 988–90
marginal costing 991–92
‘normal costs’ label 987
S-3