Figure 1 The four phases of evolution of management accounting Management accounting is an activity that is interwoven in the management processes of all organisations. It refers to that part of the management process which is focused on adding value to organisations by attaining the effective use of resources by people, in dynamic and competitive contexts. It is an integral part of the management process and distinctly adds value by continuously probing whether resources are used effectively by people and organisations in creating value for customers, shareholders or other stakeholders. But in Bangladesh, the practice of cost and management accounting has never been emphasised except in some multinational companies. One study in Bangladesh reveals that the use of cost accounting is very limited for three purposes, i.e., product/service costing, operational planning, control, and non-routine decisions (Mazumdar, 1995). Such limited focus has made the rich area of cost and managemen accounting worthless. Monopolistic markets by few manufacturers, lack o consciousness, failure of professional institutes as a lobber, service industry based economy, and shortage of professionals are some reasons behind this. Due to the recent globalisation and bitter competition, the situation is changing. Now professionalism in practice is quite visible. Some organisations have got ‘management accountant’ to dea with cost and management accounting related issues. Some others are having dedicated Note: *Respondents may have more than one qualification. Table 1 Background of respondents Table 2 Profile of companies lable 6 Potential benefits of using ABC Table 6 ible 6 Potential benefits of using ABC (continued) Table 6
