Advanced Management accounting practice has traditionally focused on techniques to assist organisational decision-making and cost control. In concentrating on the internal environment, the management accounting function has been criticised for not addressing the needs of senior management to enable effective strategic planning. In particular, the criticism has focused on inadequate provision of information which analyses the organisation’s exposure to environmental change and its progress towards the achievement of corporate objectives.

Requirement:

Explain how Strategic Management Accounting can provide information which meets the require¬ ments of senior managers in seeking to realise corporate objectives. (20 marks)

CIMA Stage 4 Strategic Management Accountancy and Marketing