Management Control and Accounting Systems under a Competitive Strategy

Abstract

Explores management control and accounting systems of three successfully competing companies to gain deeper insight and fill knowledge gaps. Results show that management control and accounting systems do exist which enhance successful competition. Common features are heavy influence of marketing strategy and activities, but with little interaction between the marketing and accounting functions and with substantial accounting‐type activity, notably activity based cost accounting, outside the accounting function. Traditional budgetary accounting controls are used only for operating costs; social and behavioural controls are used for revenues. Company executives believe these features contribute to effective competition strategy. Findings differ from conventional wisdom but provide implications for system design and continued research.

Citation

Cunningham, G.M. (1992), "Management Control and Accounting Systems under a Competitive Strategy", Accounting, Auditing & Accountability Journal, Vol. 5 No. 2. https://doi.org/10.1108/09513579210011880