Topics: Management accounting, Decision making, Strategic management Pages: 3 (598 words) Published: May 20, 2014
Strategic management accounting is an extension of traditional management accounting where analyse both internal and external information in order to achieve a desired strategic position by the use of competitive advantages that the company is having (Smith, 2007:p.11). Strategic management is there to provide relevant information required for the management of the company for decision making. Generally companies appoint a strategic management accountant to carry out the various activity analysis needed in order to take most accurate and suitable decision making. Here in this report it has been mentioned about the key roles which a strategic management accountant would undertake in an organisation. When considering the cost of a production process there are both relevant and irrelevant costs and it is important to identify them separately. So here the meanings of relevant and irrelevant costs have been discussed. Activity based costing is another method in cost accounting and it contains both benefits and problems. Here in this report benefits and problems of activity based costing have also been mentioned.

As per (Norton and Hughes, 2009:p.3) strategy can be defined as a course of action, set to achieve a specific objective which includes specification of resources required. In a very raw sense, the strategy could be identified as how a person, a company, a group or even a country would get its objectives fulfilled. Strategic management is about understanding the nature of the competitive environment, stakeholder management strategies and taking relevant actions to,

Achieve strategy essentials : Which include a clear objective for the company.

Future : Being aware of future environmental context.

Direction : Focusing on the path company is going into.

Environment : Understanding the position of government, customers, suppliers and competitors.

Resources : Understanding the resources the company has with itself.

Strategic fit : deciding on...
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