THE IMPLEMENTATION OF STRATEGIC MANAGEMENT ACCOUNTING BASED ON VALUE CHAIN ANALYSIS: VALUE CHAIN ACCOUNTING

To compete successfully in today’s highly competitive global environment, companies have made customer satisfaction an overriding priority. They have also adopted new management approaches, changed their manufacturing systems and invested in new technologies. Strategic management accounting examines the decision-making linked with the business operations and strategic work of financial administration as support for the same. Strategic management accounting is a theory and practice of accounting that looks at an organization's cost position, cost advantages and product differentiation in order to make market decisions. The value chain is a systematic approach to examining the development of competitive advantage. The chain consists of a series of activities that create and build value. Value chain analysis refers to a structured method of analyzing the effects of all core activities on cost and/or differentiation of the value chain.With the growing division of labour and the global dispersion of the production ofcomponents, systemic competitiveness and so value chain analysis have become increasingly important. Value chain accounting is the combination of value chain analysis and accounting theory.Value chain accounting is an important part of value chain management and a further development of strategic management accounting. Value chain accounting is a new approach on accounting subject which is combined by the theories of value chain management, supply chain management, accounting management and information technology. From the analysis about value chain theory and strategic management accounting theory,this paper proposes an accounting management framework based on value chain analysis called value chain accounting

Keywords:

Vaue Chain Analysis Value Chain Costing, Value Chain Accounting,

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