Subject : Accounting Topic : Management Accounting practice in changing business environment & perfomance measurement system (PMS)

QUESTION 1 In the early stage of the development of management accounting, the focus was more on the costing for material, labour, and overheads for the purpose of product costing. The development was then continued to the use as return on investment (ROI) in measuring the organisational performance. In the late 1920s, management accounting has come to be dominated by the requirements of external reporting, consequently lost its relevance for managers. Required: Discuss any three (3) challenges faced by the management accounting during the period and explain how management accounting has regained its relevance. (10 marks)