Study Of Applications Of Strategic Management Accounting

With the global competition becoming tenser since 1980's, modern sophisticated technology has been widely used and greatly developed, which leads to the radical change of the outer and inner environment of enterprises. Consequently, the traditional management theories and methods are challenged and traditional management accounting has displayed inadaptability to the new environments. The relativity of information it provides with policy decision of enterprise management has been decreasing. Changes of external environments and internal requirements of enterprises have promoted the generation and development of Strategic Management Accounting. Strategic Management Accounting (SMA) is a newly developed branch of accounting discipline in recent years. It is the product of the incorporation of enterprise strategic management and management accounting. The problems it seeks to resolve are: how to accommodate the changing internal and external conditions; how to allocate and utilize enterpriseresources in the internal environment; how to corporate within the enterprise to gain more superior strategic effects. Theoretical researches and practical applications of SMA have been well developed in Western countries. In recent years there have been a lot of explorations to SMA in domestic theoretical researches. However, there are relatively less applications of SMA. Through combination of theory and practices of SMA, this paper elucidates the practical applications of SMA in enterprise A, and devotes to discussion of the practices of SMA. This paper has creatively applied SMA to strategic managements of small- and middle-sized enterprises, and resolved the issue of how to SMA in small- and middle-sized enterprises.This paper begins with the requirements of management accounting by strategic management in the new economic era, introduces the concept of SMA, and analyzes the components and characteristic of SMA. The theoretical systems and methods of SMA have been discussed in detail. It further uses case study to analyze SMA in enterprise A. This paper consists of three chapters. The first chapter introduces the background, definition and components of SMA, and its major theoretical and methodology systems. The second chapter presents the author's practices of applications of SMA in enterprise A. It elucidates in a great detail on the establishment of SMA system, the support of SMA to determining the strategic objectives of enterprise, accomplishment ofstrategic objectives of enterprise by SMA using strategic cost management, policy decision management of operations and investments, risk management and quality cost management, and further on evaluation of enterprise strategic management performance using strategic performance evaluation system. The third chapter is the conclusion part. The author evaluates the application of SMA in enterprise A, and proposes the gist of applying SMA.