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Accounting can be dated back to more than 3000 years ago when the Egyptians ruled, they developed a method to manage and monitor the taxation of crops

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Accounting can be dated back to more than 3000 years ago when the Egyptians ruled, they developed a method to manage and monitor the taxation of crops. Civilizations after Egypt and during the Industrial Revolution, took these accounting principles and expanded upon it. They made major steps towards cost accounting which documented salaries, cost expenses, and other expenses which were recorded separately (Stefan et al., 2018). Between the 1950’s and 1980’s, managerial accounting began to take on roles in planning and control practices (Stefan et al., 2018). Since that time, accounting has evolved as complexities in businesses have evolved. Managerial accounting originally was concerned solely with the matter of cost but has now expanded into a much more diverse field focused on future events. The push that helped drive managerial accounting into expanding is rooted in competition as businesses tried to gain the upper hand against each other. Competition drove companies to look towards future events of costing strategies and forecasting decisions. Managerial accounting is influential to an organization which can impact areas such as customer service, company performance, and company position and success (Stefan et al., 2018). Technology has influenced managerial accounting to help provide better insight into prediction models, life cycle costs, and cost methods. According to Stefan et al (2018), when working in conjunction with an EMS system, managerial accounting can use information gathered from financial and non-financial data to help make better calculated decisions. With all the advancements in managerial accounting, there are two main costing methods that have stayed consistent over time: cost-per-order and cost-per-process.

I was not aware of the historical evolution of managerial accounting. It is interesting to see the progressive changes of costing from early farming and agriculture to industrial practices for individual units to the modernization used in current processes to help with forecasting future events. Understanding the direction that technology has taken managerial accounting, shows how much more important and influential the role is in an organization. Managerial accounting helps a company’s decision-makers with key metrics regarding finances and data. In the companies I have worked for we have never had someone who practiced true managerial accounting, and it begs the question “Why not?”. With the benefits of being able to help forecast, plan, and provide controls, the benefits that managerial accounting adds to an organization would be worth more than the expense. Having someone that can help an organization provide these key metrics and skills could essentially make or break an organization.

Question -You make such valid points about the history of accounting. As the article states “In 1494, Pacioli wrote Summa de Arithmetica, Geometria, Proportioni et Proportionalita, which included a twenty-seven-page treatise on bookkeeping titled, Particularis de Computis et Scripturis (Details of Calculation and Recording) on the subjects of record keeping and double-entry accounting. Pacioli’s book became the reference text and teaching tool on the subjects of bookkeeping and accounting for the next several hundred years” (Fremont.edu, n.d.)

What that means is the basis was established as a way of measuring the value of e-commerce so accounting is not new. Managerial accounting is definitely an offspring. In reference to your comments, can you expand more on the topic of costs-per-order and process? What do they mean with respect to management accountants?

Question -You make such valid points about the history of accounting. As the article states “In 1494, Pacioli wrote Summa de Arithmetica, Geometria, Proportioni et Proportionalita, which included a twenty-seven-page treatise on bookkeeping titled, Particularis de Computis et Scripturis (Details of Calculation and Recording) on the subjects of record keeping and double-entry accounting. Pacioli’s book became the reference text and teaching tool on the subjects of bookkeeping and accounting for the next several hundred years” (Fremont.edu, n.d.)

What that means is the basis was established as a way of measuring the value of e-commerce so accounting is not new. Managerial accounting is definitely an offspring. In reference to your comments, can you expand more on the topic of costs-per-order and process? What do they mean with respect to management accountants?

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